The Child Care Rebate (CCR) is a payment from the Government that helps working families with the cost of child care.

If you use approved child care for work, training or study-related purposes the Government covers 50 per cent of your out of pocket costs up to $7500 per child per year. Out-of-pocket expenses are total child care costs minus any Child Care Benefit you receive.

Currently the CCR is not means tested, which means you can receive it no matter how much you earn as long as you meet the eligibility criteria (see below).

In this year's Federal Budget it was announced that the CCR will change in 2012. For more information on these changes click here.

What is the Child Care Rebate and how has it changed?

When it was first introduced the CCR was delivered as a tax offset which reduced a family's taxable income in the following financial year.

Now, the CCR is paid directly into the bank account of eligible families at the end of each quarter rather than at the end of the financial year.

Am I eligible to claim the CCR?

To claim the CCR you must:

• Be eligible to receive the Child Care Benefit even if you don't actually receive any. (For more information see below).
• Meet the Child Care Benefit work/study/training test
• Use approved child care. Approved child care is formal child care, such as long day care, family day care, in-home care, outside school hours care and vacation care.

Families who use registered care are not eligible to receive the CCR. Your child care provider can tell you if they are approved, or you can check with the Family Assistance Office on 13 61 50.

CCR eligibility after changes to Child Care Benefit levels

As long as you are continue to meet the basic eligibility criteria for receiving the Child Care Benefit you will receive the CCR, regardless of your family's income.

Click here for further information on the eligibility criteria required to receive the Child Care Benefit.

If you are unsure whether you are eligible for either the CCR or Child Care Benefit you should contact the Centrelink to confirm your eligibility.

How and when can I claim my CCR?

• Before 30 June 2006: For child care costs incurred before 30 June 2006 you will need to claim your CCR in your 2006-07 tax return and it will count as a reduction in your taxable income.
• Between 1 July 2006 and 30 June 2007: If you used child care in this period you will receive the new CCR as a payment directly into your bank account, available from September. However, you will still need to lodge your tax return in order to reconcile your CCB payment.
• From 1 July 2007: The Family Assistance Office will pay your CCR directly into your bank account annually after you (and your partner if you have one) have lodged your tax return and your child care provider has reported your out-of-pocket expenses.
• From 1 July 2008: The Family Assistance Office pays your CCR directly into your bank account on a quarterly basis.

If you (or your partner if you have one) are not required to lodge a tax return you need to advise the Family Assistance Office so that your CCR payment (if you're eligible) can still be processed.

Further Information

Visit the Centrelink website