If you qualify for the education tax refund you should hang on to receipts for school uniforms, textbooks, stationery and computer equipment. And when you've done that, follow this straightforward process:

1. What can you claim ...

As of July 1 2011, school uniforms – including hats, footwear and sports uniforms – are an eligible expense. You can also claim the cost of buying, maintaining and repairing home computers, laptops and printers. USB flash drives can be claimed, as can a home internet connection, educational computer software, school textbooks and stationery. Study guides are on the list, as well as prescribed trade tools for secondary school trade courses.

2. ... and what you can't

Most of these seem pretty obvious but the government website www.educationtaxrefund.gov.au has an even longer list of "can'ts than "cans", including school fees, extra-curricular costs such as excursions, tutoring costs, sporting equipment, musical instruments, building levies, library book fees, school photos and, rather hilariously, tuck shop expenses. And in case you're tempted, waiting list fees are also not approved.

3. Are there limits?

Yes – you're able to claim 50 per cent of any eligible education expenses up to certain maximum claimable amounts, which are indexed each year. For the 2012 financial year it's $794 for primary school children and $1588 for secondary school children. In other words, for each primary school child in your house you can claim up to $397; for each high school pupil, it's $794.

4. Are you eligible?

In broad terms you can claim the education tax refund (ETR) if you receive family tax benefit part A, which helps families with either a sole parent or one main breadwinner with the costs of raising children. This is means-tested – for sole parents the top earnings threshold is $150,000 a year; for two-parent families it's $150,000 for the main earner and $19,382 for the secondary earner where children are aged between five and 18 years old. If you're not sure, use the Family Assistance Office's online calculator on www.familyassist.gov.au/online-services.

5. What do you need to do?

You can claim the refund when you complete your tax return – it's at item T6. Make sure you keep records to help you or your accountant or tax agent prepare your claim. And you'll need to keep receipts in case your claim is queried by the Tax Office.

6. Is there any small print?

Not really. The refund still applies even when children are ill and away from school for extended periods. They must have attended school for at least one day in the six-month period from either January 1 or July 1. Children who are home schooled can also receive the refund.

7. What if you breach the maximum?

If you spend more than the two maximum claimable amounts, you can carry over the excess for inclusion in the calculations for the following year.