EXAMPLE 4: the basic scenario (these numbers are NOT reflective on any current payment amounts – I have just made them round numbers so they’re easy to work with!)

Child is under school aged
Day care centre charge $100 a day for a 10 hour day
CCB maximum amount (100%) is $5 per hour
Parent has one child in care, CCB 0% (this may be by choice, or may be due to income estimate being over the CCB thresholds)
Parent qualifies for CCR and has opted to have the payment made direct to themselves
Child is in care 5 days per week

Child care fees for the week : $500

CCB for the week: 50 hours at 0% CCB = $0.00

Out of Pocket balance for parent to pay = fees – CCB = 500 – 0 = $500.00

Because the customer has opted to have the CCR paid to their own bank account, this is the amount they will pay to the childcare each week. When the childcare report the usage to FAO, the CCR will be calculated and paid to the customer, as below. For some childcare centres this will happen every week, for some it will be once a fortnight. There is no set day to expect this money in the bank

CCR amount is 50% of Out of Pocket balance = 500.00 x 0.50 = $250.00

CCR paid direct to customer is paid at the FULL 50% if CCB is at a zero rate – nothing is held until tax time

CCR paid to customer account = $250.00

Total weekly expense for customer
= fees –CCR paid direct to customer
= 500 – 250.00
= $250.00




If this same customer had opted for direct to service CCR, they would simply pay the same amount $250, to the child care centre. The calculation is the same