Types of Child Care Assistance

Child care assistance is provided by the Federal Government to cut down the costs of child care.

Child care costs can be prohibitive but the Australian Government has provided childcare assistance to keep the cost of reliable and reputable child care affordable for everyone. The two subsidies provided by the Federal Government are the Child Care Benefit and the Child Care Rebate. Find out if you are eligible to receive this financial assistance.

Child Care Benefit

Child Care Benefit is a payment from the Australian Government that assists you with child care costs. The child care assistance helps parents to reduce the cost of child care for long day care, family day care, occasional care, outside school hours care, vacation care and registered care.

The Family Assistance Office says you may qualify for Child Care Benefit if:

• you have a child in your care who meets the immunisation requirements (or have an exemption);
• you or your partner (if you have one) meet residency requirements (or have an exemption);
• your child attends approved or registered care and you have the liability to pay for the cost of your child care;
• you meet the income test.

Please note: If your employer contributes towards some or all of your child care costs through salary sacrificing or salary packaging, you will need to determine who is liable for child care costs. The issue of liability depends on who is obligated to pay for the child care fees.

The Family Assistance Office says that the benefit you receive depends on your personal circumstance such as:

• the amount and type of care you use;
• your income;
• the reason you are using care and;
• the number of children you have in care.

Find out more about Child Care Benefit rates of payment. You can reduce your child care costs and claim Child Care Benefit by completing and lodging a claim form at any Family Assistance Office, located at Centrelink Customer Service Centres and Medicare Australia or by using online services. The Child Care Rebate is paid in quarterly installments.

Child Care Rebate

The Child Care Rebate helps working families (who meet the eligibility criteria) with child care costs. The rebate covers 50 per cent of out-of-pocket child care expenses for approved child care up to the annual cap. From July 2010, the annual cap is currently $7,500 per child per year, subject to the passage of legislation.

The eligibility criteria for the Federal Government scheme are as follows:

• you must have used approved child care during the year;
• you must be eligible for the Child Care Benefit;
• passed the Child Care Benefit work, training, study test (for the purposes of the rebate).

There is also a Childcare Estimator available on the Australian.gov.au website to help families budget their child care and work out their out-of-pocket expenses after the subsidies have been applied. The calculator lets you choose from several options to estimate your child care assistance such as:

• Child Care Benefit and Child Care Rebate in a dollar amount;
• Child Care Benefit percentage;
• eligible Child Care Benefit hours;
• out of pocket expenses.

Guardian Childcare Alliance manages over 40 approved child care centres nationwide. To find an approved child care facility in your area or the types of childcare assistance available to you and whether you are eligible for the rebates, please contact Guardian Childcare Alliance on 1300 025 007.

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