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The Child Care Rebate in Australia

By Sally Tyrie, June 2013

1MUM Director of Money and Finance Sally Tyrie

The Australian government provides two forms of financial assistance to families to help cover the costs of approved child care ... the 'Child Care Benefit' and the 'Child Care Rebate'.  While eligibility requirements for the Child Care Benefit are based upon your family income, the Child Care Rebate is not income tested and is available to most people who have children in child care or being looked after by a registered carer.

What is it?
The Child Care Rebate covers 50% of out-of-pocket expenses for child care up to a maximum amount per child per year (the limit for the financial year 2011-12 is $7,500).  Using current payment rates, if you spend $15,000 per year on approved child care you will get $7,500 (exactly half of the total cost) back via the rebate.  If you spend $20,000 per year, you will still only receive $7,500 in assistance, and will therefore need to meet the balance of $12,500 yourself.


Is it worth claiming?
Definitely!  Child care costs vary from centre to centre, but for most people with a young family it is a significant commitment, and anything that can help reduce the costs in this area should be utilised.

Am I eligible?
In order to be eligible for the Child Care Rebate, you will need to meet the eligibility criteria of the Child Care Benefit (income levels excluded) as follows:

  • You use an approved or registered child care
  • You are responsible for paying the child care fees of your child
  • Your child is immunised (or on an immunisation catch-up schedule) or is exempt from the immunisation requirement
  • You meet the residency requirements (you must be a permanent resident or citizen, temporary residents are not eligible)
  • You and your partner meet the 'work, training, study' test requirements (or are exempt from it) - this means you and your partner must have worked, trained, or studied at some time during the week in which your child was in care.

What is approved child care and why is it important?
Approved child care services have Australian government approval to pass on the rebate to families by way of a reduction in their fees. 

Approved child care can include long day care, outside school-hours care, vacation care, in home care and occasional care.  It is important the child care you select is approved otherwise you will not receive the Child Care Rebate and you will have to meet the full cost of care.

The child care service provider you are considering should be able to tell you whether they are approved or not, or you can always check online via mychild.gov.au.

How do I claim it?
To receive the Child Care Rebate, you need to claim the Child Care Benefit for approved child care even though your income may be too high to receive Child Care Benefit (there is no separate claim form for the Child Care Rebate). 

You can apply for the Child Care Benefit either through the Department of Human Services website or in person at Centrelink (you will need to take with you a completed claim form, proof of your identity and required supporting documents).

How is it paid to me?
You can choose to have the rebate paid to you directly in fortnightly or annual payments, or you can opt to have it paid to the centre.  There are other options regarding quarterly and annual payments to you, refer to the
Department of Human Services if these are of interest to you.


Further information
Refer to the
Department of Human Services for more information regarding the Child Care Rebate, the eligibility requirements and how to apply.


Note: Information is subject to change.  Figures quoted are current at time of writing.

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2. Family Tax Benefit Part A, COMING SOON

3. Family Tax Benefit Part B, COMING SOON

4. Paid parental leave, March 2013

5. Baby bonus, updated May 2013

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