How is the "gap" calculated?

[Feijoa Mum]

I have no idea if this is my brain that cant get my head to work it out or if daycare is wrong, so any advise would be gratefully received

DS has been in daycare for two days for nearly two years now. My DS9 also goes to afterschool care so I have/had two in care and our CCB for two kids is 96.7% there abouts For DS's two daycare days it worked out to be about was about $20 a week.

DS9 is on the waiting list for after school care this year so not included, but Lady P is starting this week for two days also. Two kids in care nothing else has changed the CCB is still 96.7% but my Gap is now $60 Huh? What am I missing here?

Their full fees are $67 per day for DS and $69 per day for DD. $272 full fee for the two days each - 96.7% of that is is $263 so how do they work out the Gap charge?
I know some centres have a minimum charge but can anyone tell me how they have come up with $60?? I rung them but I still didnt get it? She said that DS was $23 and DD was $37. And yes I know that at the end of the day $30 each is pretty minimal compared to some but I dont understand how it can increase so much??

[briggsy's girl]

ok this will be long but i'll type it up as best i can!

[Feijoa Mum]

Oh thank you I was so hoping you would see this

[briggsy's girl]

CCB is a maximum rate of $3.78 per hour
if you're entitled to 96.7% you'll get about $3.66 per hour per child rebated


assuming your child care charges an 10 hour day (this is average)
for DS, with a charge of $67 per day, you'll get 36.60 rebated, leaving you out of pocket $30.40 per day, or $60.80 per week
for Lady P, with a charge of $69 per day, you'll get the same 36.60 rebated, leaving you out of pocket $32.40 per day, or 64.80 per week

all of that comes up to $125.6 per week

NOW, i'm making another sweeping assumption that you
1 - qualify for Childcare Rebate (CCR) and
2 - have your CCR paid direct to the service provider


CCR is 50% of your out of pocket costs for Child Care, rebated. it's an annual entitlement, which can be paid in four ways. if you choose to have it paid direct to the child care, 15% of your entitlement is held back until tax time in case estimates are inaccurate.

so your CCR is 62.8 per week, 15% of this is held til tax time (9.42) and the balance (53.38) is paid to the childcare

so your out of pockets (125.6) - CCR (53.38) comes up with out of pockets of $72.22 per week

which sounds like pretty much what you've been charged (i've rounded everything so odd cents may be different)





your actual bill is generally calculated as 57.5% of the costs after CCB
so, 125.6 x 57.5% = 72.22




Hope that helps with this years calculations. last year is harder to say as the fees per day may have been lower - you'd need to check with the child care provider

[briggsy's girl]

had to edit cos i had bad maths in the last one lol!

i have rounded numbers so it won't be exact - ccb is paid on the whole week so where i've rounded to 3.66 over ten hours, it may be slightly more than i've put - and same with ccr - it may be more or less than i've put depending on ccb and rounding

hope it helps a bit!

[The[cookie]Doctor]

Was coming to reply, but found BG has already
A lot of centres are 12 hour days (which sucks because CCB eligibility is 50 so the 5th day is more expensive!)

[Feijoa Mum]

Thank you so much BG, yes our centre is 12 hours too but you certainly made it make sense for me.