Parliamentary Secretary for Early Childhood Education and Child Care, Maxine McKew, says all families with children in approved care will receive significant benefits as a result of last week’s Budget initiatives.
‘Every working family with a child in approved care who is currently accessing the Child Care Benefit (CCB) and the Child Care Tax Rebate (CCTR) will be better off as a result of these Budget initiatives,’ said Ms McKew.
From July 2008 the CCTR will increase from 30 to 50 per cent 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 will be made in October 2008.
‘These changes mean that for the first time, parents will receive higher government assistance closer to the time they incur child care costs, a move which will help them meet their regular child care expenses,’ she said.
From July 2008 there will no longer be a minimum rate of CCB. This is an extension of the current system where a family’s income affects the amount of CCB they receive.
Instead of the rate reducing to a minimum rate as it does currently, 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, for a family with one child in approved care, the rate of CCB they receive will be reduced if their combined income is above $111,000 and will cut out completely at around $126,000.
For a family with two children in approved care, the rate of CCB they receive will be reduced if their combined income is above $119,000 and cut out completely at around $131,000.
Families who no longer receive the minimum CCB will still be eligible for the CCTR.
‘While the Budget measures remove the minimum rate of CCB for higher income families, the increased CCTR payment means they will receive substantially more assistance than the modest amount they will lose through CCB,’ said Ms McKew.
Further details on eligibility criteria for CCTR and changes to the Child Care Benefit are available in fact sheets on the Office of Early childhood Education and Child Care website www.oececc.gov.au .