Wondering how to claim a child care rebate? Here’s what you need to know.

With the cost of child care going through the roof, many Aussie parents are spending a sizeable chunk of their incomes on keeping their kids looked after while they’re at work. But the good news is that, depending on your financial situation, you might be eligible to claim certain benefits to help make child care a little more affordable for your family.

Find out if you’re eligible, how to claim benefits, and what’s in store for child care benefits in the future.

What is the Child Care Benefit and am I eligible?

 The Child Care Benefit is a type of financial assistance introduced by the government to help cover the costs of child care. This benefit is income-tested, meaning families need to be below the following thresholds to be eligible:

Aside from the income requirements, there are some other factors that are taken into account when deciding if your family is eligible:

• Your children need to be attending an approved/registered child care centre
• You (the applicant) need to be responsible for paying child care fees
• Children need to meet immunisation requirements up until the age of 19

You can apply for the Child Care Benefit at the Department of Human Services website, or by visiting your nearest Centrelink office.

What is the Child Care Rebate?

The Child Care Rebate is a payment made in addition to the Child Care Benefit. It isn’t income tested, which means that even if your family income is too high for you to receive the Child Care Benefit, you may be eligible for the rebate. It covers up to 50 percent of out-of-pocket costs, up to $7,500 per child per year.

When you apply for the Child Care Benefit, you will automatically be assessed for the Child Care Rebate too. If you are eligible, it’ll be paid either directly to your bank account on a fortnightly basis, or taken off the fee from your child care centre. To be eligible for the rebate, you’ll need to meet these requirements:

• You and your partner (if applicable) need to have work or study-related commitments during any week when your child/children are in care
• Kids under seven need to meet the government’s immunisation requirements
• You (the applicant) need to be responsible for paying child care fees
• You must be using approved child care

Claiming child care benefits at tax time

When you fill out your tax return, any child care assistance payments you’ve made will be balanced against your income earned. If you didn’t receive enough assistance, you’ll automatically be paid any supplements through your tax return.

What the child care changes mean for you

As of July 2, 2018, a new child care rebate scheme will take effect, replacing the current system. The new child care package will allow families earning less than $65,000 to have 85 percent of their child care bills paid for by the government, but parents will need to work, study or volunteer for at least eight hours a fortnight to be eligible.

The government estimates that 816,000 families around Australia will be better off under the new scheme, with families earning $65,710 to $170,710 averaging an extra $1500 annually. However, about 128,000 families will receive reduced payments, including 52,100 earning less than $65,710 a year.

There will be no annual cap on how much you can claim, as long as your family income is $185,710 or less. Families earning more than that will be able to claim a maximum of $10,000 per child.

If you’re looking for more advice on managing your family finances, talk to an accountant in your area.