[color=Teal]Can anyone out there explain the new 30% government childcare rebate? Up until now that sort of thing hasn't affected me, but as we'll probably be putting the boys into childcare next year, I guess it's time I knew how the whole thing worked! ;p

Does anyone know if it's means tested etc?

Any help would be great!

Vanessa

Hi Vanessa,
Basically, you are able to claim as a tax rebate 30% of, your out of pocket childcare expenses for the year. So, this is the amount you pay after your childcare benefit has been deducted. The maximum is $4000 per child. I'm not sure if it is means tested - I don't think so.

An example - the occassional care centre the girls go to charges $6.50 per hour per child. With the CCB as a fee reduction, I pay $4.40 per child. So, for a 7 hour day, my out of pocket expense is $61.60. If they go for 40 weeks of the year, our out of pocket total is $2464. We can claim 30% of this as a tax rebate. If you don't have enough tax liability to absorb the rebate, you can transfer it to your spouse.

Importantly, you are not able to claim the rebate until the year after the fees are incurred. So, for fees paid the 04/05 year, you claim in you 05/06 tax return. For the 05/06 year, you claim in your 06/07 tax return.

The most important thing to remember is to keep all your childcare receipts.

There are a few posts on this in the money management and childcare sections if you want to have a look, and there's info on the tax office website. www.ato.gov.au

HTH
Jo

Mum to twin girls
Hannah and Emma (8/4/03)


This message was edited by jaydee on Thursday, 30 June 2005 @ 10:30 AM

Oops, double post

This message was edited by jaydee on Thursday, 30 June 2005 @ 10:29 AM

[color=Teal]Jo, you're incredible! Thanks so much for all the info!

My only other question is..... will this rebate be a definite thing, or is it still waiting to be passed in parliament?!?!

It is a definite thing, all centres have information on it.

The other thing is that you must meet the work/study/training test. That means that you must be either working, studying or training to be eligible.

Those who have their children in childcare for respite/socialisation will not qualify.

[color=Teal]Thanks Zippy. I actually checked out the website and it said that it actually hadn't been passed in parliament yet, so I'm not going to get too excited, just in case!

Well, I'll be working for our company, so I should qualify!

Vanessa