Prime Time Financial Counsellors Pty Ltd: Child Care Rebate

Child Care Rebate

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

Basic Conditions of Eligibility
Residence Requirements
Basic Rates
Income Test
Assets Test
Jobs Education & Training Child Care Fee Assistance

On 1 July 2009, the Child Care Tax Rebate was re-named the Child Care Rebate. The name change is in recognition that the rebate is no longer a tax offset under tax legislation but is paid to families under the Family Assistance Law by the Family Assistance Office. There is no change to eligibility or entitlements.

Basic Conditions of Eligibility

The child must have attended approved child care.
The claimant must have been assessed as eligible for Child Care Benefit (entitled to a rate of zero or more.*)
The claimant and partner must have passed the Child Care Benefit work, training, study test (for the purpose of the rebate).

*Note: There is no income test for the Child Care Rebate. If the claimant is eligible for Child Care Benefit but their Child Care Benefit entitlement is zero due to income, they are still eligible for the Child Care Rebate.

Residence and Other 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 Temporary Protection and similar 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

Families get a Child Care Rebate if they are eligible for Child Care Benefit (entitled at a rate of zero or more) and using an approved child care service, and:

They and their partner are working, looking for work, training and studying or doing voluntary work to improve their work skills, or
They or their partner have a disability, or
They or their partner get Carer Allowance or Carer Payment for a child/adult (Carer Allowance and Carer Payment are Centrelink payments), or
They or their partner are an eligible grandparent with a primary care of a grandchild using approved child care.

Note: Families only have to participate in work related commitments at some time during a week or have an exemption. No minimum number of hours is required.

Basic Rates

50 per cent of out-of-pocket child care expenses for approved care, up to $7,778 for 2009-10.
Out-of-pocket expenses means the amount paid for child care after the Child Care Benefit and any Jobs Education and Training Child Care Fee Assistance (see below) amounts are taken out.
This payment will be made by the Family Assistance Office at the end of each quarter in which the child care costs were incurred. Quarterly payments will be paid once the Family Assistance Office has received child care usage/attendance details from your approved child care service/s. Quarterly payments will be paid to you automatically if you received your Child Care Benefit as reduced fees, at the zero rate, or more than the zero rate.

Income Test

No income test.

Assets Test

No 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.