If you choose to get your Child Care Benefit as reduced fees, your Child Care Benefit will be provided to you in the form of fee reduction so you pay less in fees.
In some circumstances you can only get Child Care Benefit as reduced fees. For example, you must claim CCB as reduced fees if you want to claim:
more than 50 hours Child Care Benefit a week because you work long hours or have extended travelling time between work and your child care service.
more than 24 hours of assistance in a week because of family crisis circumstances
As fee reduction is calculated on the basis of an income estimate, after the end of the income year, your Child Care Benefit will be recalculated using your actual taxable income, to see if the correct rate of fee reduction has been made during the year.
Note: If you want to receive your Child Care Tax Rebate as a quarterly payment you must claim Child Care Benefit as reduced fees even if you are assessed at the zero rate of Child Care Benefit.
Lump Sum
If you choose to get your Child Care Benefit as a lump sum payment, you will have to pay full child care fees to your child care service during the year. After the end of the income year you may make a claim for Child Care Benefit as a lump sum. You must lodge your claim within two years from the end of the income year for which you are claiming.
Note: If you choose to receive your Child Care Benefit as a lump sum payment, any Child Care Tax Rebate will also be paid as a lump sum at the end of that year.
If you use a combination of approved care and registered care you need to claim Child Care Benefit separately for each type of care. Contact us to discuss the options available to you.
