Extra money coming … eventually

Well, it won’t make a difference until October but I got some very good news when I heard a newscast today. It turns out that I can expect close to $1500 more in childcare rebates than I was expecting.

In Australia, some of our childcare costs are covered week to week by the government.  That is, the government pays the childcare centre some of the bill, depending on your income and whether or not you are studying/working or at home full time. Then our last government introduced a system where you receive 30 per cent of what you paid out through the year in out-of-pocket expenses.

In November, Australia voted in a new government and I hadn’t known that one of their plans was to raise that 30 per cent to 50%.

Let me show you how this works.

The weekly fee for the `toddler room’ at our daycare centre is $AU240. 

The government has assessed our income as a couple and pays the centre $65, dropping the fee for me to pay (each and every week) to $175. Yes, that’s a chunk of change, given we’re on 1.25 incomes but the government’s bit helps.

Now, assuming I paid $175 for 50 weeks of the year (the centre closes for 2 weeks at Christmas). Over the year I would pay 50 x $175 = $8750.

Under the old system I would get $2625 back after the financial year (30%). But now I could expect $4375 (50%)!!

Now in reality, that’s not quite what I can expect this year. Our financial (tax) year runs from July to June, and in the second half of last year we only paid $110 a week (fewer days/week). 

But my refund should be something like this:

25 x $110 = $2750 (first half-year)

25 x $175 = $4375 (second half-year)

Total out-of-pocket for year = $7125

50% rebate = $3562.50!!

I had previously only budgeted $2000. If you’re wondering why they don’t just pay it for us week to week, I think it is so that childcare centres don’t up the charges so parents end up paying the same amount anyway.

This is exciting because I have been wondering how we will reach our rather ambitious financial goals this year -this will certainly help and reminds me that you never know what’s around the corner!

All that said, until it is officially passed in the budget I won’t be expecting the money … I could be disappointed. The newscast said the government was planning to honour the election promise but you never know how these things can be altered in the Treasury.


  1. We’ve also heard the same good news from others. The extra cash will certainly come as a welcome relief for many.

  2. Dolly Iris said

    Wow! That money will really help out with the debt tally! I hope you get what your are hoping for.

  3. Sharon said

    Will the rebate still be capped at $4000 (or thereabouts) per child?

  4. debtfretter said

    Hi Sharon,
    I believe the cap is going to be higher than it previously was, but am not sure what the new figure will be!

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