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Child care tax rebate will continue for part-time workers after 1 July 2006



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NO.064

CHILD CARE TAX REBATE WILL CONTINUE FOR PART TIME WORKERS AFTER 1 JULY 2006

Claims by the ALP today that people who work part time will lose eligibility for the Child Care Tax Rebate after 1 July 2006 are false.

Changes to the Child Care Benefit (CCB) work/training/study test announced as part of the Government’s Welfare to Work package will not result in parents who work less than fifteen hours a week missing out on the rebate. These changes do not take effect until 1 July 2006 and have not been legislated.

In the Tax Laws Amendment (2005 Measures No.4) Bill 2005 introduced into Parliament today, a person’s Child Care Tax Rebate entitlement is linked to the existing CCB work/training/study test. The cost to revenue published in the Explanatory Memorandum is on the basis of the existing work/training/study test.

The existing work/training/study test will still apply for rebate purposes from 1 July 2006 when the new CCB changes are to take effect. This will be achieved through amendments which will complement the Family Assistance legislation which will implement the Welfare to Work changes.

The year by year increase in the cost of the Child Care Tax Rebate clearly indicates there is no intention to change the existing CCB work/training/study test for rebate purposes.

23 June 2005

Contact: Amanda Kennedy 0418 868 710

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