Child Care Tax Rebate

You need to meet certain requirements in order to be eligible for the Child Care Tax Rebate.

You must have:

  • Used approved child care during the year
  • Been assessed as eligible for Child Care Benefit
  • Worked or had work related commitments at some time during the period.

Note: if you have been assessed as eligible for Child Care Benefit, but you receive a zero rate entitlement due to income, you are still eligible for the Child Care Tax Rebate.

If you meet the eligibility criteria, you can get 50 per cent of your out-of-pocket expenses for approved care up to a maximum of $7500 (indexed) per child per year. Out-of-pocket expenses are the total fees that you had to pay for childcare expenses for approved care, less the amount of Child Care Benefit and JETCCFA (if applicable) you receive.

At the end of the financial year, the Child Care Tax Rebate will be reconciled against your actual income and adjusted for the financial year. Payment of the last quarter of the Child Care Tax Rebate will be “held” until Child Care Benefit reconciliation occurs (when your tax returns have been lodged and all your childcare attendance information has been received). This will then be used in any adjustments as part of the reconciliation. The Child Care Tax Rebate entitlement
is paid directly into your bank account by the Family Assistance Office.

If you want to receive your Child Care Tax Rebate as a quarterly payment, you must claim Child Care Benefit as reduced fees, even if you are assessed as eligible for Child Care Benefit but at a zero rate.

The Child Care Tax Rebate is based on your Child Care Benefit entitlement. If you choose to claim Child Care Benefit as a lump sum payment, you will not receive your Child Care Tax Rebate entitlement until the end of the year, once your Child Care Benefit has been determined.