Tax Tips

Child Care Rebate

 

Child Care payments are broken up into two types:

  • 50% Child Care Rebate
  • Child Care Benefit (CCB)

 

50% Child Care Rebate

The Child Care Tax Rebate helps families with the cost of child care. The Child Care Tax Rebate covers 50% of out-of-pocket child care expenses for approved child care, with a rebate of up to $7,500 (indexed) per child per year, for eligible families. If you are eligible for the 50% child care tax rebate, the Tax Office will calculate their rebate entitlement based on information provided by the Family Assistance Office (FAO). Previously this was an item that required attention on the Tax Return to obtain the rebate. From 2007, the rebate amount is automatically calculated for you.You can transfer to your spouse any part of the rebate that is still unused after their tax liability has been reduced to nil. This may be used to reduce the spouse’s tax liability.

 

You will be eligible to claim the rebate for child care fees you had to pay if for at least one week in the income year:

  • you used an approved child care facility
  • you were entitled to receive CCB, and
  • you passed the CCB work/training/study test

 

Child Care Benefit (CCB)

Child Care Benefit (CCB) is a payment made by the Family Assistance Office (FAO) to assist with the cost of child care. You can receive CCB for approved child care during the year, either as direct payments to the child care provider to reduce the fees you have to pay them (ie subsidised), or as a lump sum payment to you after 30 June each year. If you are eligible, you can receive some CCB regardless of your family's income. If you have not received CCB for approved child care please contact the FAO on www.familyassist.gov.au or phone 13 61 50.

 

You can claim both the 50% child care tax rebate and CCB

 

Both the 50% child care rebate and CCB are claimed from the FAO

 

The FAO will provide your 50% child care rebate and CCB information to the Tax Office