30% Childcare rebate

**sam's mum** · 30-11-2006 06:44

What is the 30% child care tax rebate?
The 30% child care tax rebate covers 30% of your out-of-pocket child care expenses for approved child care, with a rebate of up to $4,000 (indexed) per child per year. Out-of-pocket expenses are the total fees you had to pay for child care expenses for approved care, less the amount of Child Care Benefit (CCB) you received.

The rebate is not a �cash in hand� refund. It is a tax offset that reduces the tax calculated on your income when you lodge your income tax return.

It reduces your tax, not your taxable income, so it is a dollar for dollar benefit. But if you don't have any tax to pay, there is nothing to reduce.

**lukaelmo** · 30-11-2006 07:14

Originally Posted by the_queen

If I were PM, child care centres would be like schools, there'd be public which would be publicly funded, and private, for which you pay weekly fee's. The education department would be responsible for child care centres because they are places of education.

Thank you so much. Why this is not implemented as the obvious solution is beyone my pea brain's understanding.

Vote 1 for Queenie

.

**Fairyfloss** · 30-11-2006 15:13

thanks guys , I was so clueless now, at least I know enough to question my accountant

**jojojonsey** · 30-11-2006 17:19

As a tax offset you can also transfer it to your partner if, for any reason that works out better. ie. if you owe the tax office money and your partner didn't I think you can transfer it to your partner so that it wasn't offset against any tax that you owe.

Also if you log on to the Family Assistance website you can view what the previous financial years totals are which is handy if you have been paying for childcare over the last couple of years.

**FourAngelKisses** · 30-11-2006 17:41

Can your husband claim it if you are a SAHM?? Just wondering because I am thinking of enrolling Matthew into daycare 1 day a week next year.

**mafriends** · 30-11-2006 18:34

I Just want to mention if you are a couple the highest earner should be the one to claim the 30% rebate as they would get more back that way. I now have to fill out a tax amendment form as my accountant screwed up there.

**sam's mum** · 30-11-2006 18:43

It shouldn't matter who earns more, as long as the amount of tax that is payable is greater than the rebate owing. It is an offset against tax paid, not a reduction of taxable income.

If you have paid $5000 in childcare, 30% of this is $1500. If both partners have tax payable higher than $1500 it won't make a difference who claims it, even one has a taxable income of $150,000 and the other one $50,000. You will be able to get a $1500 offset. If one had tax payable of $1000 and the other had tax payable of $8000, then the person with $8000 payable should claim it, because they can get the full $1500. IYKWIM.

**jojojonsey** · 01-12-2006 09:32

They don't make it easy do they!

**FourAngelKisses** · 01-12-2006 09:36

Originally Posted by angel_kisses9798

Can your husband claim it if you are a SAHM?? Just wondering because I am thinking of enrolling Matthew into daycare 1 day a week next year.

Anyone???

**jojojonsey** · 01-12-2006 14:07

Originally Posted by angel_kisses9798

Anyone???

You can transfer the benefit over to your husband which may be handy he has a tax bill. Alternatively, you can submit a tax return with a nil income and claim the tax offset which means you would get the full amount back as a refund. To my knowledge you dont' have to be earning an income to claim.