Get to know the new child care subsidy package

Parents and child care providers, get ready to say farewell to the current government assistance as we welcome a new child care subsidy package in July 2018.

Working parents will have more access to subsidised child care and therefore have more support in returning to work after having children. Meanwhile, high-quality child care providers will be needed to deliver the best start to children through early childhood education programs.

How has the child care subsidy changed?

The existing way the government provides support and assistance to families when it comes to accessing child care services is through the means-tested Child Care Benefit (CCB) and the capped Child Care Rebate (CCR). The two-fold subsidy system has often caused confusion for families.

 

 

The new approach is a child care subsidy package that is streamlined and benefits those who need it most. That is families with working parents who require child care for their children to enable them to go to work. It’s worth noting that the child care subsidy will be available to those who are undertaking a variety of activities, not just work. These include:

• Working as a self-employed individual
• Undertaking unpaid work for a family business
• Completing training courses to improve work skills or employment prospects
• Enrolled in an approved course of education or study
• Volunteering
• Actively looking for work

Determine your child care subsidy

Your family’s individual child care subsidy level will be determined by three factors:

1. Combined family income
2. Activity Test – the activity level of both parents
3. Service Type – type of child care service

Make sure to check out our new blogs in the series which explores how the new child care subsidy will affect child care centres and how it might affect different families.

For more information about the new child care subsidy due to commence on July 2, 2018, click here.