childcare rebate question

how does it work?????

We are looking to find out how much childcare assistance we'd get for full time care for 3 children under 5 years I can see on the Family Assistance website the maximum rate for 3 kids in full time care is $587 a week and the income limit to receive the benefit is $153,995 (if you have 3 kids).

Surely that doesn't mean if your family income is $153,995 and you have 3 kids in care that you will get $587 a week back, does it? I assume its a sliding scale, and that $153,995 is only the amount at which your benefit is cut off. Am I right?

We are trying to see if it will ever be worth my DH working while our kids are little. It is looking pretty dismal I must say, given conservative estimates of $300 on care per week per child...

I'm no expert, but I believe that the childcare rebate gives you hAlf of your out of pocket expenses back, up to a max of (i think) $7500 per year per child (but that gives a lower maximum rate than the $587 pw that you've listed, so maybe I'm mistaken on the amount). Child care rebate is paid quarterly. Everyone gets a 50% CCR regardless of income (if you're eligible).

You may also be able to get the child care benefit, which is given in the form of reduced fees (ie, the govt pays some %age of your fees directly to the child care provider, and you pay the remainder. The %age you pay is based on a sliding scale. There's a calculator on the Centrelink website. So don't forget to factor in CCB if you're eligible.

Also, do child care centres give you reduced fees for the 2nd and subsequent children..?

HTH

ETA - maybe the $587 amount adds up your CCB and CCR??

it's a difficult calculation - but is definitely on a sliding scale based on your income estimate
if you go to the centrelink website you can run an income estimator to see what your FTB and child care entitlement is going to be

it wont' give you a dollar amount. it will give you a percentage. the percentage is of the maximum rate of about 3.60 per hour. the percentage you get will depend on income estimate and the number of kids you actually have in care (if you have one child in care one week, 3 the next, you'll get a different rebate for the two weeks)

if you're both working you'll then get half of the out of pocket costs rebated. out of pockets depends on how much the child care centre charges.

it really is messy!

the childcare rebate calculator gives you a dollar amount now.

Thanks girls, due to pregnancy insomnia :) I checked the estimator right now - it turns out it MIGHT be worth DH working!!

Background - we are debating whether it is worth him studying to be a teacher now or deferring it until all kids are in school. His argument was if a basic teacher wage was going to leave him with $10,000 in hand after paying for three kids in care (assuming our oldest is in before/after school care and youngest two, being Oliver and current baby-in-utero, in care 3 or 5 days a week) then it wasn't worth it. But wowee! I just worked out (using the calculator) it looks like we will have an extra $28,000 coming in if he gets a basic first-year teacher wage. And that's not even taking into account the 30% childcare tax offset!

The upshot of this is that if I can prove it is worth him being a teacher sooner rather than later, he will do his teaching course next year. Which in turn means I think I will get to stay home for a WHOLE YEAR with baby #3! Yay!

Fingers crossed the figures continue to stack up :)

Child care rebate is the 50% of your already out of pocket expenses at the centre. Child care benefit is the amount your fees are discounted by the centre - according to centrelink - this is combined income based and yes, is on a sliding scale - the amount you are quoting would be the upper most limit to get the minimum amount. On the other end, to get maximum for one child, the annual income amount is around $34000 and the discount goes down from there.

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. Everyone gets a 50% CCR regardless of income (if you're eligible).


HTH

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I have been told this so many times from friends and family that everyone gets the 50% CCR regardless of income but everytime i have phoned about it i'm always told "no your not entitled to anything, you earnings are too high" or "your not eligible" .....bizarre hey,i think i might actually go into an office once i've had this bub and sort it all out once and for all.

the 50% child care rebate is NOT for everyone!

it is for couples where BOTH partners meet the work/study/training test!

Here's info from the family assistance office website about the 50% child care rebate. (note - this is different to the means tested child care benefit, which is ALSO given to offset the costs of child care for those earning under about 135K per annum). Check out the bold westy - looks like there's no way you're not eligible due to income, so if you meet the eligibilty work/study/volunteer work test you should be able to get it. You can claim for previous years if you've missed out due to the inaccurate info you recieved. HTH

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Child Care Rebate


Can I get the Child Care Rebate?
How much Child Care Rebate can I get?
How can I get paid?
What if I did not get CCB for previous years?
Using Online services
The Child Care Rebate helps working families with the cost of child care. The Child Care Rebate covers 50 per cent of out-of-pocket child care expenses for approved child care, with a rebate of up to $7,778 (indexed) per child per year, for eligible families.

For more information, contact us.

If you would like information about approved child care services and vacancies in your local area, contact the Child Care Access Hotline on 1800 670 305* or search the My Child website.

*Free call unless from a mobile or pay phone.

Can I get the Child Care Rebate?
There are certain requirements you must meet to get the Child Care Rebate.

You must have:

used approved child care during the year;
been eligible for Child Care Benefit (entitled at a rate of zero or more)*;
passed the Child Care Benefit work, training, study test (for the purposes of the rebate).
*Note: There is no income test for the Child Care Rebate. If you are eligible for Child Care Benefit, but your Child Care Benefit entitlement is zero due to income, you are still eligible for the Child Care Rebate.

How much Child Care Rebate can I get?
If you meet the eligibility criteria, you can get 50 per cent of your out-of-pocket expenses for approved care up to a maximum of $7,778 (indexed) per child per year. Out-of-pocket expenses are the total fees you had to pay for child care expenses for approved care, less the amount of Child Care Benefit and Jobs, Education and Training Child Care fee assistance (if applicable) you received.

How can I get paid?
Quarterly payments will be paid once we have received child care usage/attendance details from your approved child care service/s. Quarterly payments will be paid to you automatically if you receive your Child Care Benefit as reduced fees, at zero rate, or more than zero rate.

At the end of the financial year, the Child Care Rebate will be reconciled against your actual income and adjusted for the financial year. Payment of the last quarter of the Child Care Rebate will be 'held' until Child Care Benefit reconciliation occurs (when your tax returns have been lodged and all your child care usage/attendance information has been received). This will then be used in any adjustments as part of the reconciliation. The Child Care Rebate entitlement is paid directly into your bank account by the Family Assistance Office.

If you want to receive your Child Care Rebate as a quarterly payment, you must claim Child Care Benefit as reduced fees, even if you are eligible for Child Care Benefit but your Child Care Benefit entitlement is zero due to income.

You can choose to receive your Child Care Rebate annually at any time by contacting the Family Assistance Office on 13 6150.

Note: The Child Care Rebate is based on your Child Care Benefit entitlement. If you choose to claim Child Care Benefit as a lump sum payment, you will not receive your Child Care Rebate entitlement until the end of that year, once your Child Care Benefit entitlement has been determined.

Child Care Tax Rebate claiming arrangements for 2006-07 and 2007-08
For these years, your Child Care Tax Rebate entitlement is an annual payment into your bank account. For 2006-07 the limit is $4 211. For 2007-08 the limit is $4 354.

Note: For Child Care Tax Rebate claims prior to 2006-07, please visit the Australian Taxation Office website or call 13 28 61.

What if I did not get CCB for previous years?
If you have identified that you are eligible for Child Care Benefit for the 2007-08 and 2008-09 financial years, but have not received it, you can lodge a lump sum claim for each period with the Family Assistance Office. You must do this within two years of the end of the financial year for which you are claiming. Once you have received your Child Care Benefit entitlement, you are then eligible for the Child Care Tax Rebate if you used approved care and were working, training or studying.

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Good thanks for making that nice and clear BG!

Thanks for that skeetaboat .... very interesting.

sorry if i came across as rude at all westy - it just seems to be that a lot of the public tell their friends that everyone is entitled - it definitely has restrictions (which primarily impact SAHP's unfortunately)

No you didnt come across as rude at all :)

Another option that may be for you is getting a nanny at home. If you have 3 children under school age you can do it and the government will still pay you the child care rebates. Contact your local family day care office, they'll be able to give you more details. It could work out far cheaper and far better for your kids to stay at home with their own carer.

Just another thought.

Hipmummy.. is this only for parents who have three or more kids? Would love some more info on that! Thanks :)