The Coalition Education Tax Refund

23 July 2010

Professor Michael Dirkis says the Coalition's $760 million tax refund is unlikely to shift students from the public to the private school sector.

In an interview with the Australian Financial Review, Professor Dirkis states that the change would probably increase the number of families that would claim the refund, although it would be difficult to estimate the number.

He believes the main benefit of the Coalition policy would go to families on lower incomes who had not used the tax refund in the past but would be able to do so for private school fees.

Some of the chief beneficiaries would be those with children in Catholic schools with more affordable fees, he asserts.

However, he stipulates that the proposal for a refund on up to $1,000 in school costs would only translate into a $300 benefit for a $1,000 outlay.

"It's certainly not going to encourage anyone to pay these added costs," he says.

Contact: Greg Sherington

Phone: +61 2 9351 0202

Email: 1138065e6007025142003f03473f3d124a202a04321e69311721603738