Improving child care assistance

In 2007-08, the Government will spend more than two and a half times the amount spent on child care assistance in 1996-97. During this period, the Government has introduced the Child Care Benefit (CCB) and the Child Care Tax Rebate (CCTR), which covers 30 per cent of out‑of‑pocket costs, and also expanded child care places.

Increase in Child Care Benefit

From 1 July 2007, rates of CCB will increase by 10 per cent, on top of indexation. This will provide additional assistance to over 700,000 families. A family on maximum rate CCB with one child in Long Day Care for 40 hours per week will receive $134.80 per week — an extra $16.40.

More timely assistance

From 1 July 2007, families will receive the CCTR — up to $4,200 per child —as a direct payment shortly after the year in which they incur child care costs.

Families with out-of-pocket costs in both 2005 06 and 2006-07 will receive two rebates in 2007-08, one through the tax system under current arrangements and the other as a direct payment.

The increase in CCB and more timely provision of the CCTR will cost $1.9 billion over five years from 2006-07.

Meeting special needs

The Government will also increase child care access for families and communities with special needs, including additional funding of:

• $44 million over four years for child care services in regional and remote communities
• $62 million over four years for child care services that provide care for children with ongoing high support needs (such as children with disabilities)
• $15 million over four years to support parents studying, looking for, or returning to work.