Child Care Rebate-indexation pause-extension

Under this measure the annual Child Care Rebate cap will remain at $7500 for the 2014-15, 2015-16 and 2016-17 financial years, instead of rising as previously planned.

Description of the measure

Under this measure the annual Child Care Rebate cap will remain at $7500 for the 2014-15, 2015-16 and 2016-17 financial years, instead of rising as previously planned.

In the 2010-11 Budget, the Child Care Rebate annual cap was reduced to $7500 and indexation was paused for four years. This arrangement was due to cease on 30 June 2014. Under this measure, the pause in indexation will continue.

This measure will continue to provide savings which will assist the government in its ongoing investment in child care to ease the cost burden on families across Australia and lift the quality of child care.

Questions and answers

Who will be affected by this measure?

This measure will impact middle to high income families where parents are in full-time work and therefore have higher child care costs over the year.

Families with above average child care fees and high child care usage will also be impacted.

This measure will not affect Child Care Benefit payments to lower income families. Child Care Benefit rates and thresholds will continue to be indexed in line with current policy.

Am I eligible for this measure?

To be eligible, people need to be receiving (or intend to receive) Child Care Rebate.

When will this measure start and finish?

This measure takes effect from 1 July 2014 and will apply to the 2014-15, 2015-16 and 2016-17 financial years (subject to passage of legislation).

Page last updated: 9 March 2016

This information was printed Friday 30 September 2016 from humanservices.gov.au/corporate/budget/budget-2013-14/budget-measures/families/child-care-rebate-indexation-pause-extension It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.