Child care incentives
Child care incentives come in two forms: the child care benefit and the child care rebate. The government has announced that they intend to increase the level of assistance provided by these measures and improve the way they’re administered.
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From 1 July 2007, the Child Care Benefit will increase by 10 per cent in addition to normal indexation. This benefit assists with the cost of child care for eligible families using approved child care services or registered carers.
The maximum rate of the benefit will increase from $2.96 to $3.37 per hour. This represents a maximum benefit of $134.80 per week ($7,009.60 annualised) for one child in approved care for 40 hours.
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From 1 July, the Child Care Tax Rebate, currently paid through the tax system, will be paid as a direct payment through Centrelink after the end of the financial year in which the expenses occur.
This rebate covers 30% of your out-of-pocket child care expenses for approved child care. Out-of-pocket expenses are the total fees paid for child care expenses, less the amount of Child Care Benefit received.
Families who incurred out-of-pocket expenses in both 2005-06 and 2006-07 will receive two rebates in 2007-08 — one for 2005-06 expenses as part of their tax assessment under existing arrangements, and the other, for 2006-07 expenses, as a direct payment. The maximum payment will be $4,096 per child in respect of 2005-06 and $4,211 per child for 2006-07.
Getting started
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