Tax Payers with dependent children receiving the Childcare Tax Rebate have no doubt been confused by the timing of the claim.  Records were required to be kept for the 2005 tax year and the 2006 year before any claim was possible.

At the time of the introduction of this legislation there was a great deal of grief for recipient of Family Tax Benefit who suddenly were required to repay (sometimes substantial sums) to Centrelink, because their estimated income was lower than their actual income.  The Governments reaction was to prevent this occurring by requiring tax payers to wait a year.  However, the benefit of the tax rebate (the cash) was needed at the time of incurring the cost and unfortunately this system meant that it could be at least two years before the benefit was received.

In the last federal Budget, a change was announced for the system for the 2008 year.

In the 2007 tax return, the 2006 expenses will be claimed (i.e. same principle as before).

Thereafter the Family Assistance will make one direct payment if you paid child care in 2006-2007 and following financial years.  This will be calculated after lodgement of each year's tax return.