Kate Ellis

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09 Jul 2010 - CHILD CARE REBATE TO BE PAID FORTNIGHTLY

PRIME MINISTER

CHILD CARE REBATE TO BE PAID FORTNIGHTLY

To help ease cost of living pressures being faced by many families, Prime Minister Julia Gillard today announced that the Government will give families the option to receive Child Care Rebate payments fortnightly from 1 July 2011.

For the first time parents will have access to the 50% CCR at the time that they incur their child care fees, making it easier to manage the out-of-pocket cost of child care.

Families will also be able to choose whether or not they have their Child Care Rebate paid directly to their child care service and receive an immediate fortnightly fee reduction, or whether they continue to receive the Rebate directly.

Families who wish to continue to receiving the Rebate quarterly will be able to do so.

This will allow families to choose the payment arrangements that best suit their circumstances.

The option of fortnightly CCR payments will reduce the upfront costs of care and marks the next step of the Government's reform agenda in Child Care.

At the moment, a family earning $80,000 with one child in full time care would be paying more than $220 per week in out-of-pocket costs  until they receive the rebate at the end of every quarter.

Under this new proposal, the same family's out-of-pocket costs would reduce to just over $110 per week.

The Australian Government has already made child care significantly more affordable for families by increasing the rebate from 30 to 50 per cent of out-of-pocket expenses, up to an annual cap of $7,500 per child.

As a result of this change, ABS statistics show that the cost of child care for Australian families fell by more than 20 per cent.

A family earning $80,000 now receives $2,239 a year more in Child Care Rebate than they would have under the Coalition Government.

Now they will also be able to receive that important assistance each fortnight.

Over the next four years the Australian Government is providing $14.4 billion through Child Care Benefit and the Child Care Rebate to help parents with the cost of child care.

Under the Coalition, the Child Care Rebate covered only 30% of out-of-pocket costs and families had to wait for at least a year to receive their rebate.

PERTH
9 JULY 2010
PRESS OFFICE (02) 6277 7744


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Kate Ellis' Electorate: Adelaide

Covering 75 sq.km, the electorate includes the Adelaide central business district, North Adelaide, the surrounding parklands and adjacent suburbs in every direction.
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