Child care can be an expensive business, leaving parents with the difficult choice of deciding whether it’s just better to stay at home or go to work. This means that in many cases one parent is forced to give up career or education in order to care for the children. Even families with a decent income are likely to feel the strain when it comes to child care, making returning to work a difficult process. Government schemes such as child care rebate aim to reduce this strain and help parents to stay on top of their work or study commitments.
What Is Child Care Rebate?
Child care rebate is a government scheme that has been put in place to help families cover the cost of childcare. The payment is made fortnightly and can either be sent into your bank account or be paid directly to your child care provider to offset your final fees. Alternatively, the payment can be made quarterly or annually as a lump sum.
Who is Eligible for Child Care Rebate?
Being not income tested, child care rebate is not like child care benefit. However, to be qualified to receive child care rebate, you must first be eligible for child care benefit. Some families are considered eligible for child care benefit but do not receive any payments due to their income level, in which case they may be able to claim a rebate instead. If you receive child care benefit then you may be eligible to receive a rebate on top of this, with the amount being calculated by deducting your benefit payments first. If both parents have work, training or study commitments, then your family is likely to be eligible for a rebate. There are certain conditions, and one of them is that care must be received from a government approved institution.
How Could Child Care Rebate Benefit You?
With a current limit of $7,613 per child, child care rebate may be granted to cover up to fifty per cent of your out-of-pocket child care costs. This is invaluable in helping parents to continue with work or study after having a child. Not only this, but it means that children can benefit from an early childhood education from an approved institution. High quality child care can provide your child with the head start they need in life to get off to a flying start.
Changes to Government Schemes
From July 2018, government childcare schemes are shifting slightly to a new childcare subsidy program. This scheme is calculated on a sliding scale according to your income, with anyone earning below $350,000 eligible to receive help with childcare. This new approach aims to provide subsidised care to those who need it most so that every child can receive the best start in life.
By understanding what government-funded childcare your family could be eligible for, you could get the helping hand you need to support both yours and your child’s development.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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