CHILD CARE SUBSIDY (from 2nd July 2018)
The package includes a new Child Care Subsidy, which replaces the current Child Care Benefit and Child Care Rebate.
When the Child Care Subsidy commences on 2 July 2018, it will:
- replace the Child Care Benefit (CCB) and Child Care Rebate (CCR) with a single, means-tested subsidy
- be paid directly to providers to be passed on to families
- be simpler than the current multi-payment system
- be better targeted and provide more assistance to low and middle income families.
A Family Child Care Subsidy Estimator is available to make it easy for families to estimate their subsidy entitlement. This gives parents and carers an idea of what their new subsidy might be under the New Child Care Package.
The estimator is user-friendly and only takes a few minutes to fill out.
Child Care Subsidy Eligibility
Some basic requirements must be satisfied for an individual to be eligible to receive Child Care Subsidy for a child. These include:
- the age of the child (must be 13 or under and not attending secondary school)
- the child meeting immunisation requirements
- the individual, or their partner, meets the residency requirements.
In addition, to be eligible for Child Care Subsidy the individual must be liable to pay for care provided, the care must be delivered in Australia by an approved child care provider, and not be part of a compulsory education program.
How does it work
There are three factors that will determine a family’s level of Child Care Subsidy. These are:
- Combined Family Income
- Activity Test – the activity level of both parents
- Service Type – type of child care service
The Child Care Subsidy will be paid directly to providers to be passed on to families as a fee reduction. Families will make a co-contribution to their child care fees and pay to the provider the difference between the fee charged and the subsidy amount.
The New Child Care Package will also provide targeted additional fee assistance for vulnerable families through the Child Care Safety Net.