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Annual Round up of Child Care Benefit, Rebate and Paid Parental Leave – 2014 Checklist of what you can and can't claim and how much
If you're new to the whole child care game this year or even if you aren't, we've seen a lot of changes over the last couple of years in child care, in terms of the child care benefit, rebate, and paid parental leave and it can all be a bit confusing.
So we thought it would be useful to put together an up-to-date checklist of what, how much and when you can and can't claim the child care benefit, rebate, paid parental leave and baby bonus.
So here we go for the basics, just so everyone's on the same page and please note that rates are only confirmed until the end of the current tax year – 30 June 2014:
- Child care benefit is means tested and awarded on a sliding scale according to income. Eligible families can be earning no more than $145,642 yearly income for one child, increasing to $150,914 for two children, and $170,404 plus $32,219 for each child after the third.
- Child care benefit is only for “registered” approved child care* (which currently excludes nannies, babysitters and au pairs) and is payable for up to 50 hours child care per week.
- Parents can claim it either as a lump sum or as reduced fees through their child care service.
- Proposals are being discussed to include nannies in the registered/approved child care category, allowing parents to claim rebate for nanny fees.
* Approved child care can include outside school-hours care, family day care, vacation care, long day care, in-home care, and some occasional-care services. Grandparent carers may also apply to be "registered" carers.
- Not means tested although you have to be eligible in terms of residency and work/study requirements to register for child care benefit (even if you are “zero rated” and therefore won’t get child care benefit due to income)
- You must also be using registered, “approved” child care.
- Rebate amounts to 50% of child care expenses (fees) up to $7,500 per child per year and can be paid weekly, monthly, quarterly or annually.
- Payments are made by direct to you or deducted from your bill by your child care service.
Helps with the cost of approved child care for eligible parents undertaking activities such as job search, work, study, training or undertaking rehabilitation to enter, or re-enter the workforce as part of an Employment Pathway Plan (also known as a Participation Plan or Individual Participation Plan).
- Means tested under $150,000 family income
- Parents must also meet the work/study test requirements (have worked at least 10 of the 13 months prior to having the baby and have worked 330 hours of those 10 months with no more than an 8 week gap)
- Eligible working parents may receive Parental Leave Pay for a maximum of 18 weeks at minimum wage. If it is not paid by your employer, the Dept. of Human Services will pay it directly to you
- Parental leave payments may affect other benefits
- Parents may not claim baby bonus AND Paid Parental Leave. You must choose between the two
- Parents of stillborn children may also be eligible
- your child is born or adopted before 1 March 2014
- you are eligible for Family Tax Benefit for the child (disregarding the Family Tax Benefit income test) within 26 weeks of the child's birth or after an adopted child enters your care before turning 16
- you are claiming for a child other than your own and you started caring for the child within 26 weeks of the child's birth and are likely to continue caring for the child for at least 26 weeks
- you or your partner are the primary carer of the child
- you have not earned more than $75,000 family income in the 6 months prior to the birth of your baby
- you meet the residence requirements
- you have not received Parental Leave Pay for the child (you cannot have both)
- you make your claim no later than 52 weeks after the birth of the child or after the adopted child enters your care
- Parents must apply within 6 months of the birth of the child
- Parents of stillborn babies may also be eligible
For in-depth information and eligibility questions go to humanservices.gov.au
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