9 December 2005

Child Care Tax Rebate to Benefit 640,000 Families

About 640,000 Australian families will benefit after the child care tax rebate passed the Senate last night.

Assistant Treasurer Mal Brough said the rebate which delivers on the Howard Government's election commitment will provide a benefit to eligible families costing about $1 billion over four years.

"The rebate will cover up to 30 per cent of out-of-pocket child care expenses for approved care up to a maximum of $4,000 per child, for families who receive Child Care Benefit and meet the work/training/study test," Mr Brough said.

"Around 640,000 Australian families will benefit from the rebate, which will help make child care more affordable."

The child care tax rebate was announced in the Government's Extra Assistance for Families package during the 2004 election.

The rebate can be claimed by families in the tax return for the year after child care expenses have been incurred. This means that families can lodge claims for child care expenses incurred in 2004-05 in their 2005-06 tax returns. Parents should keep their child care payment receipts or other records of payment.

The measure was part of the Government's Tax Laws Amendment (2005 Measures No. 4) Bill.