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With recent increases in the Child Care Tax Rebate to 50% for eligible working families, quality child care is more affordable than ever. Most families are eligible for Child Care Benefit, so the combination of both government payments can mean that you pay only a fraction of the daily fee, depending on your family income & arrangements.
Grandma’s Place will advise families of daily fees during enrolment.
Below is a table based on indicative daily fees in Mackay in 2008/09. This will demonstrate how much (or little) child care is actually costing you after Child Care Benefit (CCB) & Child Care Tax Rebate (CCTR) benefits are taken into account.
| Average Daily Fees for Mackay area | |||||
| CCB | $60.00 | $62.50 | $65.00 | $67.50 | $70.00 |
| 0 % | $30.00 | $31.25 | $32.50 | $33.75 | $35.00 |
| 20 % | $25.84 | $27.09 | $28.34 | $29.59 | $30.84 |
| 40 % | $21.67 | $22.92 | $24.17 | $25.42 | $26.67 |
| 60 % | $17.51 | $18.76 | $20.01 | $21.26 | $22.51 |
| 80 % | $13.34 | $14.59 | $15.84 | $17.09 | $18.34 |
| 100 % | $9.18 | $10.43 | $11.68 | $12.93 | $14.18 |
These out of pocket fees include CCTR of 50% of out of pocket expenses.
Therefore, if your CCB is 80% and you are eligible for CCTR, your out of pocket child care expense ranges from $13.34 to $18.34, depending on the daily fee. A huge difference from the full daily fee.
EXAMPLE: Take the example of Jacinta & Barron Doe, a local couple with 2 small children, Samantha and Riley. Barron works for a local business and Jacinta works part time at a hairdresser in the city. Their family income is $88,000 and both Samantha and Riley attend child care several days a week. The family assessed Child Care Benefit is 60%. Therefore, the Does pay the reduced fee of $37.52 per day per child each week, and then receives half of that back in their Child Care Tax Rebate payment, paid every 3 months – cost of child care per day per child is just $18.76 for Jacinta & Barron, including meals.
| Full daily fee | $62.50 |
| CCB % | 60 % |
| Jacinta & Barron pay | $37.52 |
| CCTr refund at end of each qtr | $18.76 |
| Out of pocket cost of child care | $18.76 |
And don’t think that you will miss out if family income is $100,000 + per annum – the 50% Child Care Tax Rebate is paid to those families where parents meet the work/study test*, regardless of what the family income is. And you can still get Child Care Benefit if your family income is below $127,000 or higher if 2 or more children in child care, so few families miss out on Child Care Benefits of some sort, even when their family income includes a high wage.
For more information about Child Care Tax Rebate & Child Care Benefits, visit the Department of Education, Employment & Workplace Relations website for more information.
* See DEEWR website for further information about meeting the work/study test.
View the Disclaimer
The information regarding CCB & CCTR on this page is for explanatory purposes only & we take no responsibility for incorrect information, nor future changes to government funding for child care services. Please contact Family Assistance Office (Ph: 13 6150) to discuss your individual circumstances & determine your individual entitlements.
