Media Release

Australian families benefit from changes to child care assistance

9 August 2007

Changes to the Child Care Benefit and the 30 per cent Child Care Tax Rebate, announced as part of the 2007-08 Budget, will benefit around 700,000 Australian families, the Minister for Human Services, Senator Chris Ellison said today.

Senator Ellison said the changes are part of the Australian Government’s $2.1 billion investment in child care and early childhood programmes.

“From 1 July 2007, the Child Care Benefit increased by 13 per cent, significantly helping families meet the cost of child care,” Senator Ellison said.

“The maximum rate of Child Care Benefit for 50 hours of approved care now stands at $168.50 per week. This means a low-income family with one child in full-time approved care is now $20.50 a week better off.

“In addition, the Howard Government also announced families will now receive the 30 per cent Child Care Tax rebate closer to the time in which the child care costs are incurred.  In 2006-07, the maximum rebate is $4,211 per child, per year. 

“The Family Assistance Office will now pay the rebate as an annual lump sum payment, rather than it being claimed through the Australian Taxation Office.

“As a result, this year families could receive both their 2005-06 rebate as part of their tax assessment as well as their 2006-07 rebate through the Family Assistance Office,” Senator Ellison said.

The rebate for the 2006-07 financial year will be paid from September 2007, after families have lodged their tax return/s with the Tax Office and their child care provider has given Centrelink information about child care usage.

To be entitled to the rebate, a family must receive Child Care Benefit, use approved child care and meet the work, training, or study requirements.

“There’s no need for families to do anything to receive this assistance.  Child Care Benefit rate changes are automatically applied and any entitlement to the Child Care Tax Rebate is assessed once a family lodges their tax returns and their child care provider has forwarded information about child care usage to Centrelink,” Senator Ellison said.

“It should be noted that parents must lodge their tax returns before payment of the rebate can be made. 

“This significant boost to child care funding comes on top of an investment of more than $73 million to develop a National Child Care Management System (CCMS) to provide the best information on child care supply and usage that has ever been available across Australia.

“The CCMS will be implemented progressively across child care services from 1 Jan 2008 to 30 June 2009.  The CCMS will help child care services to implement streamlined administrative processes and reduce red tape,” Senator Ellison said.

Media Contacts

Minister's Office, Michael Barrett – 0419 424 359.