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.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.