3.8.1 CCR Limit Calculations - General Provisions

Maximum limit

The maximum limit of CCR is $7,500 per child per year. For the income years 2011-12, 2012-13 and 2013-14, the annual indexation is paused. The first indexation of the $7,500 maximum limit is to occur on 1 July 2014.

The CCTR limit for the income year ending on:

30 June 2008 is $4,354, and
30 June 2009 is $7,500.

The CCR limit for the income year ending on:

30 June 2010 is $7,778,
30 June 2011 is $7,941,
30 June 2012 is $7,500,
30 June 2013 is $7,500, and
30 June 2014 is $7,500.

Act reference: FAAct section 84F Component of each formula-CCR limit, section 85 Indexation of amounts

Policy reference: FA Guide 3.6.7 CCR - Historical Limits

Indexation

The limit is indexed annually from 1 July 2009 onwards under A New Tax System (Family Assistance) Act 1999 Schedule 4.

Act reference: FAAct section 84F Component of each formula-child care rebate limit, section 85 Indexation of amounts, Schedule 4 clause 2 Indexed and adjusted amounts - table item 22, Schedule 4 clause 3(1) CPI Indexation Table - table item 22, Schedule 4 clauses 3(6A) to 3(6B) No indexation of CCR limit on 1 July 2011, 1 July 2012 and 1 July 2013

Calculating out-of-pocket expenses

For 2008-09, 2009-10, 2010-11, 2011-12, and 2012-13 CCR is 50% of the out-of-pocket expenses. The first 3 steps in the following table shows how to calculate out-of-pocket expenses:

Step	Action
Total fee	Work out the total amount of the individual's approved child care fees for the child in each base week for the individual and the child in the income year.
CCB entitlement	Work out the total amount of the individual's entitlement to CCB for the care for the child in each base week for the individual and the child in the income year.
JETCCFA (if applicable)	Work out the total amount of JETCCFA, if any, that the individual is eligible to receive for the child in each base week for the individual and the child in the income year.
Rebate calculation	Work out the lesser of the following amounts: - the amount worked out using the formula: 50% x (Total fees - CCB entitlement - JETCCFA entitlement (if applicable)), or - the CCR limit for the income year.
Rebate amount	The result is the amount of the individual's CCR for the child for the income year.

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

Note: To calculate CCTR for the 2006-07 and 2007-08 income years, the CCTR is calculated as 30% of out-of-pocket expenses.

Act reference: FA(Admin)Act Part 3 Division 4AA Child care rebate

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Last reviewed: 2 July 2012

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