Helping with child care
and education costs

Increase in Child Care Tax Rebate

The Government will increase the Child Care Tax Rebate (CCTR) from 30 per cent to 50 per cent at a cost of $1.6 billion over four years. This will ensure that, in addition to any Child Care Benefit payable, half of a family's total out‑of‑pocket child care costs will be met every year. The cap on the amount that can be paid each year will also be lifted from the current amount of $4,354 to $7,500 per child.

The Government will also pay the 50 per cent CCTR every three months, instead of once a year, providing support closer to when the bills come in.

Improving access and quality

The Government will invest $115 million over four years to build the first 38 of 260 planned child care centres in priority areas. The remaining 222 centres will form part of a National Partnership agreement with the States.

The Government will invest $22 million over four years to develop new national quality standards for child care.

Education Tax Refund

The Government will provide eligible parents with a 50 per cent Education Tax Refund (ETR) from 1 July 2008, at a cost of $4.4 billion over four years.

Parents who receive Family Tax Benefit Part A with children attending

either primary or secondary school or whose school children receive Youth Allowance or related payment, will be able to claim the ETR every financial year for eligible education expenses. The amount that can be claimed is up to:

• $750 for each child attending primary school, giving a refund of up to $375 per child, per year
• $1,500 for each child attending secondary school, giving a refund of up to $750 per child, per year.

Families will first receive the ETR when they complete their 2008‑09 income tax returns or lodge a claim with the Australian Taxation Office.