Child Care Benefit and Child Care Tax Rebate from 1 July
From 1 July 2008, the Child Care Tax Rebate (CCTR) increased from 30% to 50% of out-of-pocket costs.
The maximum payment will increase from $4,354 to $7,500 per child, and payments will be made quarterly, rather than annually.
The first of these payments was made in October 2008.
Also, from 1 July 2008 there will no longer be a minimum rate of Child Care Benefit (CCB) (before that date, the amount of CCB reduced to a minimum rate, depending on the family’s income, but now it will continue to reduce until the family’s rate is zero).
The income level at which CCB will cut out completely depends upon the number of children in approved care.
For example:
the rate of CCB a family with one child in approved care receives will be reduced if their combined income is above $111,000 and will cut out completely at around $126,000; or
the rate of CCB a family with two children in approved care receives will be reduced if their combined income is above $119,000 and cut out completely at around $131,000.
Note that families who no longer receive the minimum CCB will still be eligible for the CCTR.