Prime Time Financial Counsellors Pty Ltd: Child Care Benefit

Child Care Benefit

Reproduced from Centrelink's "A Guide to Australian Government Payments 1 January - 19 March 2010"

Basic Conditions of Eligibility

Residential Requirements

The claimant or partner must be living permanently in Australia and be:

an Australian citizen, or
the holder of a permanent visa, or
a New Zealand citizen who arrived on a New Zealand passport, or
a holder of a certain temporary visa (e.g. Spouse Provisional and 851 Resolution of Status (Permanent) (Class CD) and similar subclass visas), or
a student from outside Australia sponsored by the Australian Government, or
a non-resident experiencing hardship or special circumstances.

Other Factors Affecting Eligibility

Children aged under seven must have age appropriate immunisation, be on a catch-up schedule, or have an exemption.
For approved care, all families are eligible for Child Care Benefit for up to 24 hours care per child per week.
For approved care, both parents, or the single parent, must participate in activities that meet the work, training, study test for at least 15 hours per week (or 30 hours per fortnight), or have an approved exemption to be eligible for more than 24 hours per child and up to 50 hours of Child Care Benefit per child per week.
For registered care, both parents, or the single parent, must participate in activities that meet the work, training, study test at some time during the week child care is used to receive up to 50 hours of Child Care Benefit.
Grandparents who are the primary carers for their grandchildren do not have to meet the work, training, study test to receive up to 50 hours of Child Care Benefit per child per week of approved care.
Grandparents who are the primary carers for their grandchildren and who are receiving an income support payment from Centrelink or from the Department of Veterans' Affairs are eligible for a special rate of Child Care Benefit (CCB), called Grandparent CCB, to cover the full cost of approved care for up to 50 hours per child per week.

Maximum Rate - Approved Care

Up to $3.60 per hour for a non-school child ($180.00 for a 50 hour week).
Rates for school children are 85 per cent of the non-school child rates.
Can be paid directly to child care services to reduce the fees charged. Fee reductions are based on an estimate of adjusted taxable income, with reconciliation after the end of the income (financial) year.
Alternatively, payment can be made as a lump sum to parents after end of income (financial) year.

Rate - Registered Care

Registered care rate of $0.602 per hour (up to $30.10 per week) for for incomes over an upper threshold.
Rates for school children are 85 per cent of the non-school child rates.
Paid by direct credit on presentation of receipts within 12 months from when the care was provided.

Income Test - Approved Care

Maximum rate payable for family incomes under $37,960 or families on income support.
From July 2008, families with income above the income limits will not receive any Child Care Benefit. If families' Child Care Benefit entitlement is zero due to income, they may still be eligible for the Child Care Tax Rebate.

Child Care Benefit is not payable over the following income limits:

Number of children in care	Upper income threshold
One	$131,560
Two	$136,375
Three+	$153,995 + $29,077 for each child after the third

Income Test - Registered Care

Assets Test

Jobs Education & Training Child Care Fee Assistance

Provides extra help with the cost of approved child care to eligible parents undertaking activities such as work, JobSearch, training or study as part of an Activity Agreement, to help them to re-enter the workforce.
Pays some of the "gap fee" - the difference between the total child care fee and the amount covered by Child Care Benefit up to a person's eligible hours limit, with all parents making a contribution of 10 cents per hour per Jobs Education & Training Child Care Fee Assistance hour per child plus the cost for any additional hours over their eligible hours limit.