3.8.2 CCR Limit Calculation - Examples

Example 1: Calculating the rebate

From July 2011 the CCR can be paid on a fortnightly basis either directly to an individual's nominated bank account or to one or more approved child care service/s. Fortnightly payments will be paid once Centrelink has received child care attendance details from approved child care service/s and the CCB fee reductions have been calculated for the week (a more than nil amount or a nil amount due to income). For individuals in receipt of a nil amount of CCB, the full 50% CCR will be paid up to the annual limit. For individuals in receipt of a more than nil amount of CCB, Centrelink will withhold a reduction amount of 15% to provide a reserve to minimise an individual's debt that may be determined after the end of the income year. The reserve withheld will be reconciled at the end of the financial year and any outstanding amounts will be paid to the individual.

Individuals may also still continue to receive their payment to a nominated bank account on a quarterly basis or as an annual lump sum payment.

Ben and Robyn both worked full-time in 2016-17 and had 2 children in approved care, David and Bella. As Robyn was working and was eligible for CCB for that year, she is eligible for CCR for that year.

David's after school care fees were $3,075 and Bella's long day care fees were $15,000. Robyn's CCB entitlement was $620 for David and $2,430 for Bella.

Robyn's CCR entitlement is calculated as follows:

Yearly David Bella Weekly over 48 weeks David Bella
Total fees $3,050 $15,000 Weekly fees $63.54 $312.50
Less CCB entitlement $620 $2,430 Less CCB entitlement $12.91 $50.62
Out-of-pocket expenses $2,430 $12,570 Out-of-pocket expenses $50.63 $261.88
x 50% $1,215 $6,285 x 50% less 15% withheld to reduce a debt $21.51 $111.30

Robyn's total CCR entitlement for both David and Bella is $7,500 ($1,215 + $6,285).

Robyn's weekly CCR entitlement for both David and Bella is calculated as $132.81 ($21.51 + $111.30) which is less 15% of her 50% CCR entitlement of $156.25 ($130.94 + $25.31) as Robyn is in receipt of more than a nil amount of CCB.

Example 2: Reduction of CCR to the maximum allowable rate

Anna works full-time in 2017-18 and has her daughter Sophie in full-time approved child care. As Anna works and is eligible for CCB for that year, she is eligible to receive CCR for that year.

Anna's total fees for Sophie's care are $17,000 and her CCB is $680.

Anna's CCR entitlement for 2017-18 is calculated as follows:

Yearly Sophie Weekly over 48 weeks Sophie
Total fees $17,000 Weekly fees $354.16
Less CCB entitlement $680 Less CCB entitlement $14.16
Out-of-pocket expenses $16,320 Out-of-pocket expenses $340.00
x 50% $8,160 x 50% less 15% withheld to reduce a debt $144.50

Anna's CCR entitlement is calculated to be higher than the annual maximum allowed of $7,613. Anna will receive the maximum allowable amount of $7,613.

Anna's weekly CCR entitlement for Sophie is calculated as $144.50 which is less 15% of her 50% CCR entitlement of $170.00 as Anna is in receipt of more than a nil amount of CCB.

Example 3: Calculating CCR for families who are eligible for CCB, but whose CCB entitlement is zero due to income

Individuals who are eligible for CCB, but whose CCB entitlement is zero due to income, may still be eligible for CCR.

Rose and Peter both work full-time in 2017-18 and have 2 children in approved care, Marta and Filip. As Rose and Peter work and are eligible for CCB, but their CCB entitlement is zero due to income, they are still eligible for CCR.

Filip's before and after school care fees are $4,920 and Marta's long day care fees are $16,000.

Rose and Peter's CCR entitlement for 2017-18 is calculated as follows:

Yearly Filip Marta Weekly over 48 weeks Filip Marta
Total fees $4,920 $16,000 Weekly fees $102.50 $333.33
Less CCB entitlement $0 $0 Less CCB entitlement $0 $0
Out-of-pocket expenses $4,920 $16,000 Out-of-pocket expenses $102.50 $333.33
x 50% $2,460 $8,000 x 50% $51.25 $166.66

Rose and Peter's CCR entitlement for Marta is calculated as $8,000. However, they will only receive the maximum of $7,613 allowed for Marta. The CCR for Filip is $2,460. They will receive a total CCR entitlement for both Filip and Marta of $10,073 ($2,460 + $7,613).

Rose and Peter's weekly CCR entitlement for both Filip and Marta is calculated as $217.91 ($51.25 + $166.66) as they are in receipt of a nil amount of CCB, the full 50% CCR will be paid up to the annual limit.

Note: To calculate the CCR for the 2017-18 income year, the CCR is calculated as 50% of out of pocket expenses for approved child care and is capped per child at $7,613.

To calculate the CCR for the 2011-12 to the 2016-17 income years, the CCR is calculated as 50% of out of pocket expenses for approved child care and is capped per child at $7,500.

To calculate the CCR for the 2010-11 income year, the CCR is calculated as 50% of out-of-pocket expenses for approved child care and is capped per child at $7,941.

To calculate CCR for the 2009-10 income year, the CCR is calculated as 50% of out-of-pocket expenses for approved child care and is capped per child at $7,778.

To calculate CCTR for the 2008-09 income year the CCTR is calculated as 50% of out-of-pocket expenses for approved child care and is capped per child at $7,500.

To calculate CCTR for the 2006-07 and 2007-08 income years, the CCTR is calculated as 30% of out-of-pocket expenses for approved child care and is capped per child at $4,211 for 2006-07 and $4,354 per child for 2007-08.

Act reference: FAAct section 57EAA Eligibility for CCR-for a week, section 84AAA Amount of CCR-for a week, section 84AAC Component formula-reduction percentage

FA(Admin)Act Part 3 Division 4AA Child care rebate, section 65EAAAA Individual may elect to have CCR paid in various ways

Last reviewed: 3 July 2017