The Child Care Rebate assists parents or guardians who are working, studying or training with their out of pocket child care costs. To receive the Child Care Rebate you must claim Child Care Benefit.
The Child Care Rebate is not income tested.
If you are using approved child care for work, training or study-related reasons the Government will provide you with 50 percent of your out-of-pocket child care costs, up to the annual cap. From 1 July 2011, the Child Care Rebate annual cap is $7500 per child per year.
How is the Child Care Rebate paid?
There are four ways to receive your Child Care Rebate:
- Direct to your approved child care service paid fortnightly
- Direct to your bank account paid fortnightly
- Quarterly payment to your bank account
- Annual payment to your bank account
When you choose a payment option, this option will be applied for the entire 2011-2012 financial year, unless exceptional circumstances apply.
Fortnightly payments
From July 2011 you have the option to receive your Child Care Rebate paid fortnightly either directly to your child care service provider or directly to your nominated bank account. The frequency of the fortnightly payment depends on how frequently your child care service provider submits your child care attendance records. For some families this will mean a fortnightly payment but for others it will actually be paid weekly.
Where you are receiving the higher than zero rate of Child Care Benefit and you choose the Child Care Rebate fortnightly payment option, the Family Assistance Office will withhold 15 per cent of the payment to ensure that you do not accumulate a debt or overpayment within a financial year. The balance of these funds withheld will be reconciled at the end of the financial year (when your tax returns have been lodged and all your child care attendance information has been received). Any outstanding amounts will be paid as a direct payment to your bank account.
Where your Child Care Benefit entitlement is zero you will receive your full 50 per cent Child Care Rebate as a fortnightly payment up to the annual cap. As you do not receive Child Care Benefit during the year, there is no risk of a debt after the end of the financial year reconciliation process.
Quarterly payments
If you choose to receive your Child Care Rebate as quarterly payments, they will be paid once the Family Assistance Office has received child care attendance details from your approved child care service/s for the quarter. If you already receive your Child Care Rebate as a quarterly payment then this will continue unless you nominate to receive fortnightly payments.
Annual payment
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 the year, after you have claimed your Child Care Benefit as a lump sum.
What is approved child care?
Approved child care is care provided by a service provider that participates satisfactorily in the Australian Government funded quality assurance system and has been approved to receive Child Care Benefit payments on behalf of eligible families. Most long day care, family day care, before and after school care, vacation care, some occasional care and some in-home care are approved child care providers. Your child care service can tell you if they are an approved provider.
To find an approved child care service in your area, you can ring the Child Care Access Hotline on 1800 670 305 (TTY 1800 639 327) between 8am and 6pm nationally Monday to Friday or search the www.mychild.gov.au website.
It is important to note that you cannot get the Child Care Rebate if you use registered child care. To learn more about registered child care, please see the registered child care fact sheet.
Can I get the Child Care Rebate?
If you answer yes to the following questions you may be able to receive the Child Care Rebate:
- Do you have children?
- Are your children attending approved child care?
- Are you an Australian resident or the holder of a qualifying visa?
To get Child Care Benefit and Child Care Rebate you or your partner must: be an Australian resident (a citizen or permanent visa holder who is residing in Australia), or hold a 851 Resolution of Status (Permanent) (Class D),or a temporary visa and similar subclass visas (to find out the temporary visa subclasses that may qualify, please contact the Family Assistance Office), or be an overseas student studying in Australia and receiving direct financial assistance from the Australian Government (eg. AusAID scholarships or International Post Graduate Research Scholarships), or in some circumstances, be a non-resident experiencing hardship.
- Are you liable to pay child care fees for your child?
- Do you work, are you training or do you study?
Child Care Benefit
The Child Care Benefit is a different payment to the Child Care Rebate. The Child Care Benefit is based on your income and is different for everyone. Most families using approved child care receive Child Care Benefit as a fee reduction at the time they pay their fees. Some receive it as a lump sum at the end of the year.
What do you need to do?
Do you currently receive Child Care Benefit and the Child Care Rebate?
YES - You need to inform the Family Assistance Office if you wish to receive your Child Care Rebate on a fortnightly basis as a fee reduction through your child care service(s) or as a direct payment to your bank account. If you do not nominate a Child Care Rebate payment choice you will retain your current choice, either quarterly or annually as a lump sum payment directly to your bank account.
NO – You need to claim for Child Care Benefit so that you can also receive your Child Care Rebate.
How do you claim?
If you have now identified that you are eligible for Child Care Benefit but have not received it, you can lodge a lump sum claim with the Family Assistance Office. You must do this within two years of the end of the financial year for which you are claiming.
If you were not eligible for Child Care Benefit, you will not be able to get the Child Care Rebate.
For more information
If you would like further information on the Child Care Rebate or the Child Care Benefit and to discuss your personal circumstances you can call the Family Assistance Office on 13 61 50 or visit your nearest Family Assistance Office.