MyChild

Fortnightly Child Care Rebate payment option

From 1 July 2011, subject to the passage of legislation, the Government will provide families with the option to receive their Child Care Rebate (CCR) paid fortnightly, either directly to their bank account, or through their child care service as a fee reduction, further bringing assistance to families at the time they incur the costs of their child care.

To help families to meet child care costs, from July 2008, the Australian Government previously increased the CCR from 30 per cent to 50 per cent of child care out of pocket costs and from a maximum of $4354 up to $7500 per child per year. In addition, since then families could elect to have their CCR paid quarterly instead of annually to ensure the assistance was there for them closer to the time they incur their child care expenses.

Unlike Child Care Benefit (CCB), the CCR is not income tested however, parents must first apply and be eligible for CCB to receive the rebate, even if they do not receive any CCB entitlement because their income is too high. The reason for this is to ensure that the CCR is paid only where families have met the eligibility criteria such as some work/study activity, in addition to other CCB eligibility requirements like residency and immunisation.

The Government is providing $14.9 billion through Child Care Benefit ($8.7 billion) and the Child Care Rebate ($6.2 billion) to help 800 000 families annually with the cost of child care over the next four years out to end 2013-14.

For further information enclosed is a Question and Answer fact sheet on the option for CCR to be paid fortnightly.