Aussie company could be the next Google in education tax credit coverage

Posted November 09, 2019 08:21:29AUSTRALIA’S biggest search engine could be among the first to receive the $7.5 billion education tax relief under a new government-commissioned review.

Key points:The Education Commission’s “investment” report recommends a tax credit worth $4 billion for teachers and schoolsThe review will take up to two years to completeThe report has been leaked ahead of the Budget but not released to the publicThe Education Tax Credit (ETC) will provide up to $4.5bn to schools and teachers through the tax relief scheme for teachers.

Key point:The Government has indicated it will use the tax credit to help fund schools, teachers, and other state and territory governmentsThe ETC has already been a mainstay in Queensland and New South Wales for decades, but was not expanded until 2015.

Key measures to boost the ETC included boosting teacher pay by 5 per cent and the introduction of a tax rebate of up to 50 per cent on ETC fees.

The new Education Commission report, released on Thursday, recommends a $4bn tax credit for teachers, up from the current $4,000.

The commission also recommends a new funding formula to help teachers meet the cost of running their schools and schools with disadvantaged students.

It says the ETP should provide $4m a year for schools and $7m for teachers through a new scheme that will “enhance” the ECTA’s funding.

The Commission said the ETA was “the single largest subsidy in Australian education policy” and had been “inextricably linked to Australia’s social, economic and cultural diversity”.

“It is also one of the most comprehensive and efficient tax credits in the world,” the report said.

The Education Minister, Christopher Pyne, has promised to expand the ETS.

“I believe we have to have a strong ETA,” he said in the budget last year.

“The Education Commissioner, the Treasurer, the Education Secretary, the Minister for Schools, and the Minister of Finance need to work together to achieve this.”

Education Minister Christopher Pyre says a strong and efficient ETA is a key plank of his Government’s tax reform plan.

Mr Pyne said a tax reform “plan” was being developed to provide a “fair and equitable tax structure”.

“The key element of this plan is a tax break for teachers that will help the economy and make the system work for all Australians,” he told reporters.

“It’s about delivering the tax benefits for teachers who are working hard to deliver a better education system for all.”

“That’s what we’ve done through the ETAs reforms, and we’re looking at further changes to the ETs tax structure,” he added.

The Labor Government said the Education Commission was “making a big deal out of nothing”.

“While the Government’s education reforms will make schools and educators stronger, they will not change the fact that the Ets tax breaks for teachers are not worth much money,” Education Minister Steven Ciobo said.

“We need to find the right balance between helping teachers, schools and local communities, and investing in our economy.”

Topics:government-and-politics,education,government-or-politics-and/or-business-economics,tax,education-industry,government—state-issues,education—schools,australiaContact Kate WhiteMore stories from Australia

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