Prime Time Financial Counsellors Pty Ltd: Child Care Rebate

Child Care Rebate

Reproduced from Centrelink's "A Guide to Australian Government Payments 20 September - 31 December 2011"

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

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 the annual cap. From 1 July 2010, the Child Care Rebate annual cap is $7,500 per child per year.
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.
From July 2011, families have the option to receive the Child Care Rebate paid fortnightly either directly to thier child care service provider or directly to thier nominated bank account. Child Care Rebate fortnightly payment is based on the frequency of child care attendance records from Child Care Service providers.
Families still have the option to receive their Child Care Rebate quarterly or annually as a lump sum directly to thier bank account.
The quartely payment will be made by the Family Assistance Office at the end of each quarter in which the child care costs were incurred. If you choose to receive to receive your Cild Care Rebate as quarterly payments, they will be paid once the Family Assistance Office has received child care attendance details from your approved child care service/s for the quarter. If you already receive your Child Care Rebate as a quarterly payment then this will continue, unless you nominate to receceive fortnightly payments.
The annual payment will be made by the Family Assistance Office at the end of the financial year when families lodge a Child Care Rebate lump sum claim and once child Care Rebate entitlement has been determined.

Note: Child Care Rebate may only be payable for absences from child care that attract Child Care Benefit.

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.

Note: You can use the Centrelink/Family Assistance/Child Support/Child Care Estimator online to work out your possible entitlement to Family Tax Benefit and/or Child Care Benefit and Child Care Rebate for approved child care. Visit www.familyassist.gov.au or www.mychild.gov.au for more information.