Child Care Tax Rebate

Make sure you claim your entitlements to the Child Care Tax Rebate…

Welcome to 2009 and its time to get the family started at day care, pre-school or school!

Its the end of the second quarter of the 2008/2009 Financial Year and most of us will be entitled to receive the second quarterly payment of the Federal Government’s Child Care Tax Rebate (CCTR)! The CCTR is paid quarterly (1st payment was paid in October 2008) for 50% of your out of pocket expenses; to a maximum of $7,500/child/year (you will need to keep your fee payments/account up to date to be eligible for the rebate). I’ve included some brief details below together with some links to the Family Assistance Office. Keep a look out for your payment directly to your bank account in January/February 2009!

(information from http://www.fahcsia.gov.au/Pages/default.aspx)

Can I get the Child Care Tax Rebate?

You must meet certain requirements in order to be eligible for the Child Care Tax Rebate.

You must have:

• used approved child care during the year
• been assessed as eligible for Child Care Benefit*
• worked or had work related commitments at some time during the period. Information on work related commitment is available at the Child Care Benefit work, training, study test.

*Note: If you have been assessed as eligible for Child Care Benefit, but you receive a zero rate entitlement due to income, you are still eligible for the Child Care Tax Rebate.

How much Child Care Tax Rebate can I be paid?

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 $7500 (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 JETCCFA (if applicable) you received.

How can I get paid?

The Child Care Tax Rebate claiming arrangements for 2008-09 onwards

From July 2008, the Child Care Tax Rebate can be paid quarterly rather than annually. If you choose to receive it quarterly, the first payment will be made by the Family Assistance Office from October 2008 once your service has reported your child care usage/attendance information for July to September 2008. The first three quarters will be paid based on your provisional Child Care Benefit entitlement.

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

If you want to receive your Child Care Tax Rebate as a quarterly payment, you must claim Child Care Benefit as reduced fees, even if you are assessed as eligible for Child Care Benefit but at a zero rate.

The Child Care Tax 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 Tax Rebate entitlement until the end of that year, once your Child Care Benefit entitlement has been determined.

The 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 contact the Australian Taxation Office by visiting http://www.ato.gov.au/ or by calling 13 28 61.

Guardian Childcare Alliance © 2010
Child Care Management System – Childcare Business – Child Care Centre Management