Does anyone know what childcare benefit tops out at?

[Matryoshka]

I'm trying to understand the Childcare benefit (its not what i want, but i have to apply for it to access another scheme). It says its income tested, so i guess this means, the rebate you get per hour is less the higher your income?

Does anyone know what the income/salary would be where you wouldn't receive or be eligible for any CCB? for instance, say you earned over $100k, would you get any CCB?

I've spoken to centrelink, not very helpful, and i just don't want to go through all the paperwork if theres no point.

[~me~]

Over $100k you would still be entitled to a certain amount. With two kids I think the income limit is $136k. You also do not have to claim it straight away you can wait till end of financial year once your tax has been submitted for it to be calculated and receive it in one lump sum.
Are you talking about Childcare Benefit or Childcare Tax rebate? As the tax rebate is not income tested but capped at about $7000.
If you look at the family assistance website they have the rates on their and you can also do a rate estimator without having to login or register.
Go to familyassist dot gov dot au and click on the Childcare Benefit link.

[*Ali*]

I just had a look on the website and it says for 2 children the income limit is $136, 375
If you go to the online services there is actualley a calculator for child care benefit- it will give you a percentage of CCB.

Then basically the percentage you get- say for eg is 35%, it means they will pay 35% of the scheduled $3.60 per hour.

So if for eg. your fees are $60 per day would would pay 65% of 3.60 per hour for 12 hours (usually what a full day is set down for) so $2.34 x 12 = $28.80
Plus you would also pay the difference between the $43.20 (govt schedule fee of $3.60 per hour for 12 hours) and the $60 the daycare charges for a full day- which is $16.80.
Therefor your total per child per day would be $28.80 + 16.80= $45.60

I hope thats not too confusing, and helps a little.

[Matryoshka]

Thanks for that, i've really been struggling to understand the system.

So Ali... for me to put 2 kids in a daycare it would be about $90 out of my pocket on the day?

Is $3.60 the average rate? and if you get CCB you get a percentage back? not on the day but at tax time??

[Trillian]

With the percentage amount that is immediate. I have a % of 34.08 and the other day I paid $30 and x cents on the day, but the 50% for the rebate is only claimable each quarter, so you have to wear that cost for 3 months. I think it is quarterly isn't it?

[Matryoshka]

is what you are saying, that you pay full child care fees upfront, but later on, get back a percentage of what you paid?

What i'm actually applying for is in-home child care, which is a little different, and a short term scheme for people with a disability or hardship. But i have to go through the application for CCB even though i won't be ever using an out of the home child care centre..... if that makes sense?

[Trillian]

You still need your CCB% and the rebate amount for any type of care you choose. So yes, you pay for it all upfront, minus your CCB% (which will vary from person to person) and then you claim back the childcare rebate later, which is where you get up to 50% back on those costs.

[Amity]

I think Fionas uses something like this... not sure though...

[*Ali*]

I am not 100% sure exactly what your cost would be- I was only giving an example!

For us we have a combined income of about $80, 000, I think my CCB 72%- my daycare fees are $57 a d ay and I pay $26 per child per day out of pocket.

The childcare rebate- of which you get 50% of your out of pocket expenses back, I am pretty sure only applies if both parents are working.

CCB (Child Care Benefit) is a percentage which gets applied to the childcare fees and discounts the cost that you pay weekly.

CCR (Child care rebate) is a rebate of 50% of out of pocket which is payed either quaterly or at the end of the financial year- depending on your choice up to $7700 per child per year however there are work/ study/ training conditions for this, I just copied this off the family assistance site

If you wish to claim between 24 and 50 hours of Child Care Benefit per child per week, you have to show that you and your partner have work related commitments for:

at least 15 hours a week; or
30 hours a fortnight; or
have an exemption

[Matryoshka]

Oh i misunderstood your post ali!

I still don't really understand how it works, even after calling centrelink. I've gotten some more info though from the agency, it's an awful lot of paperwork.

Dh income last year is just under 100k because he took a salary sacrifice to acrue extra annual leave as i was sick, but that has just ended, as of next month it will be over 100k but less than 136k.

Centrelink told me once i've registered for CCB, the agency computer will link and they will know the percentage, if i have to pay anything... because i'm actually applying for the Special Childcare Benefit for in home care, which is not income tested. But can't access that until i've applied for CCB.

So complicated, but i'm getting there.

[Floweryfields]

Special CCB doesn't cost you anything at all as far as I understand, but there are a pile of strict rules with applying for it.

[Matryoshka]

Yep thats right, it will be free for a 13 week block of up to 50 hours a week, then a review if i need another 13 weeks. But you can't apply for special child care benefit UNLESS you apply for child care benefit, even though i don't plan on using child care benefit at this point. Its a pretty long winded process and i've spoken to about 15 people just to figure out how to access it. It's something no one seems to want to deal with due to the amount of papework, and centrelink haven't been very helpful so far. Luckily the lady at the agency i'm dealing with is really helpful and i am a candidate for the scheme.

[Rodney Hoare]

CCB Explained

In the example of "For us we have a combined income of about $80, 000, I think my CCB 72%- my daycare fees are $57 a d ay and I pay $26 per child per day out of pocket. "

I will explain a couple of things first,

CCB calculation doesn't take into consideration of your income. HOWEVER your CCB Percentage does. Centrelink uses your income to determine what your percentage will be.

Hourly Rate = Set by the Goverment which is currently $3.60/h

Hours attended. Long day care always work off 12 hours per day regardless of how many you attend.

Leave Loading is also a compent of the calculation.
If you come <=35 hours (2 days) then the leave loading till be 110%
If you come 36 hours (3 days) then the leave loading till be 104%
If you come =>37 hours (4-5 days) then the leave loading till be 100%

Calculation
Hourly rate x number of hours x parent % x leave loading x 100%

Example above would be
3.6 * 12 * 72 * 110 * 100 which equals $34.21

Gap fee will be $57 - $34.21 = $22.79

This is the amount to pay for 1 child per day based on coming only one day per week. Not $26

Hope that helps someone

Rodney