Income test for Child Care Benefit

Depending on the type of care your child is in, you might need to meet an income test.

Approved care

To receive Child Care Benefit for approved care, you need to be eligible and meet an income test. You don't have to meet an assets test. Even though you may not receive any benefit due to your income, you may still be eligible for Child Care Rebate.

The amount of benefit you get for approved care depends on your annual family income. If you receive the benefit as reduced fees through the year, we'll work out your fee reduction based on your annual family income estimate.

You need to tell us about any changes to your income throughout the year. This will minimise the risk of an overpayment when we balance your family assistance payments at the end of the year. You can update your family income estimate using your Centrelink online account through myGov.

The maximum rate is payable for families with an actual annual family income of less than $45,114. The maximum rate is also payable for families receiving income support.

You won't be entitled to any Child Care Benefit for approved care if your family income is more than the following thresholds:

Number of children attending approved child care Income limits before your payment reduces to $0
1 $156,914
2 $162,633
3 or more $183,655 plus $34,724 for each child after the third

To have your eligibility for Child Care Rebate assessed, you need to submit a claim for Child Care Benefit for approved care.

Registered care

To qualify for Child Care Benefit for registered care, you don't have to meet an income or assets test.

Page last updated: 18 October 2017