newsletter article
home > newsletter articles > may 2005 > new 30% childcare tax rebate & grandparent child care benefit


NEW 30% Childcare Tax Rebate & Grandparent Child Care Benefit
Bub Hub E-Newsletter, May 2005, Issue 35 - Article 2


The Australian Government offers a range of payments through the Family Assistance Office to support families.

Instead of going to different agencies to get family assistance, families can access services and payments in one place - the Family Assistance Office located in all Medicare offices, Centrelink Customer Service Centres or Tax Office shopfronts.

Family assistance includes a variety of payments, each is different depending on the needs of the family. Some of these payments include:

  • Maternity Payment - Helps with the costs of a new baby. It is a non-income tested lump sum payment of $3 000* per child. A claim must be made within 26 weeks of the birth of the child.

  • Maternity Immunisation Allowance - Is a payment to encourage parents to immunise their children. It is a non-income tested lump sum payment for children between 18 and 24 months who have been fully immunised, usually made in the 19th month.

  • Family Tax Benefit Part A - Is the most common payment to help families with the cost of raising children. It is worked out on the family's combined annual income and the ages and number of dependent children in the family. It is paid per child, and can be received as a fortnightly payment or lump sum at the end of the financial year. A Supplement of $600* is also included, payable as a lump sum at the end of the financial year.

  • Family Tax Benefit Part B - Is extra assistance for single parent families and families with one main income, where one parent chooses to stay at home to balance some paid work with caring for their children. It is paid per family, and can be received as a fortnightly payment or lump sum at the end of the financial year. A Supplement of $300* is also included, payable as a lump sum at the end of the financial year.

  • Child Care Benefit - Helps with the costs of child care, helping parents balance their work and family responsibilities.

For more information, pick up a copy of The What, Why and How of Family Assistance booklet from your nearest Family Assistance Office, call 13 6150 or visit the website.
* At certain times the maximum rate of payment a customer can receive is adjusted in line with Consumer Price Index (CPI).

 

Introduction of the NEW 30% Child Care Tax Rebate

The new 30% Child Care Tax Rebate was announced by the Government during the 2004 election campaign.

The key features of the rebate are:

  • The Tax Rebate will be introduced from 1 July 2004. The Rebate is claimed in the succeeding year's tax return (ie the Rebate for costs incurred in 2004-05 is claimed in the 2005-06 tax return).

  • It covers 30% of out of pocket costs for approved child care. Out of pocket costs are total fees charged for approved child care less actual Child Care Benefit (CCB) entitlement.

  • To be eligible families must receive CCB and meet the CCB work/training/study test.

  • There is a maximum Rebate payable of up to $4000 per child.

  • The Tax Rebate will be claimed through the tax system and administered by the Australian Taxation Office (ATO).

Child Care Receipt Requirements
For the first year of the Tax Rebate (2004-05) families will need to keep their child care receipts so they know how much their total fee charged was for each child in child care. Some families may not have kept their receipts and may approach child care services to provide replacement receipts or an annual statement of total fees charged.

More details about the Rebate can be found on the following page of the Australian Tax Office website.

 

Grandparent Child Care Benefit (GCCB)

As part of its 2004 election policy, the Australian Government announced greater assistance for grandparents who have the primary responsibility for raising and caring for their grandchildren.

Increasing numbers of grandparents today are taking on the care of their grandchildren when parents, for one reason or another, are unable to care for their children.

To help grandparents in this important caring role, the Australian Government has introduced Grandparent Child Care Benefit (GCCB). GCCB became available from 3 January 2005 and covers the full cost of child care fees charged for each child in approved care for up to 50 hours a week.

For more information, see the following webpage.

To be eligible for GCCB, a grandparent carer must be receiving an income support payment from Centrelink or the Department of Veteran's Affairs and be the sole or major provider of the ongoing daily care for the child. In these cases, the grandparent would have responsibility for making the day-to-day decisions about the grandchild's care, welfare and development.


Article kindly supplied by
 
Family Assistance Office
website: www.familyassist.gov.au
ph: 13 61 50



Related pages:


back to top

spacer

spacer