Just wanting to know if I could get the CCR paid direct to the centre so I can pay less fees each fortnight but not get any CCB till I do a lump sum claim when it is tax time.
My income and Hubby's have so many variables so would hate to get it wrong so I would rather just get the rebate and then get any extra I'm entitled to in a lump sum.
yup - you opt for child care benefit at zero rate and child care rebate direct to centre
if you do this, you will get the entire ccr paid to the centre (50%) instead of having some witheld for tax time. if you are entitled to ccb at the end fo the year, you will have any ccr you have been overpaid (direct to the centre) deducted from the ccb top up
this is something often suggested as it's much easier to manage knowing your bill is halved, rather than trying to estimate
why would CCR be overpaid?
ccr is half of your out of pocket expenses
if you get no child care benefit, you get half of your total bill paid
so if your bill is $20, you get $10 paid
tax time comes around, you get your ccb. the calculation says you should have received $2 per day
so your bill should have been $18, your CCR only $9
so you get your CCB of $2 for the day, but you should have received $1 less CCR, so all you'll get in the bank is the extra $1
hope that makes sense - tried to use really simple numbers - it's far more complex, but essentially ANY CCB top up you're entitled to at tax time will be cut in half as you get 50c in the dollar CCR - so if you get $100 extra CCB at tax time, you will have been over paid CCR $50, and would get the difference ($50) paid to you
it's done this way rather than paying you the full CCB top up then raising a debt for CCR for half the amount.
Thanks heaps - you make it all sound so easy!! Wish the peeps I have spoken to in the past at centrelink made it sound so simple!!
Its not really complex of you look at it with simple numbers like I did. When you're looking at complex numbers it's not so fun!
SOrry to Hijack but this is like the question I have.:
If i'm not getting any FTB anymore it would be more than likely that my CCB is zero but I should still be eligible for CCR as we satisfy requirements.
If this is the case I can opt to have the CCR paid to the centre. So if my bill is $80 per day and CCR is paid to the centre, I would only be paying $40 per day?? Is this right or have i misinterpreted things the wrong way??? Does this work for FDC too???
If this is the case, then I might look at a centre for the girls rather than my current arrangements.
Yes that would be correct.
But i do think they put a little away for end if year, so the rebate will be a little under 50 %
Cat xox
Yes, so my centre is $73 a day but the centre only gets me to pay half so I pay $36.50. Then at tax time I will get back some more money from the childcare benefit
Is the bit they keep for Ccb or ccr though? If its Ccb I don't get that anyway.:
CCR I think!
I'll look into it :) worth asking questions :)
ftb and ccb thresholds are very different - you can be over the threshold for ftb adn still get some ccb - however, if you're not sure of income, or happier to have a clean calculation (like the 50% ccr) then yes, this is the way to do it
as long as both of you are working/studying/training you will get the ccr payment. if you opt to withold ALL ccb you may be entitled to until tax time, you get the FULL 50% CCR - up to the maximum amount per year (7500). if you receive ANY CCB payment through the year, your CCR is dropped to 42.5% of your bill, with the other 7.5% held until tax time, as a safety net. you will still be entitled to the same amount, but the timing of payment varies.
BG did they change the withheld amount? I thought it was 15%
it is 15% of your 50% entitlement - which makes it 7.5% of the total bill
for example, bill is $100, your CCR is 50% (so $50) - 15% of your $50 is withheld (so $7.5) - which is the same as 7.5% of the total bill
ETA - this means 42.5% of the bill is paid to the child care as your CCR (50% less the 7.5%)
Ahhh Gottcha
I think we would wait until tax time for any Ccb to make it easier.
Thanks BG. Just wanted to make sure I was understanding properly. Might have just solved my child care issues.... Now to try and find a nice place with vacancies....