What is the Child Care Subsidy?
The Federal Government’s new Child Care Subsidy offers the perfect opportunity for many Australian families to gain access to a vital and much-needed service.
Commencing in July 2018, the initiative is designed to enable more low and middle-income families to access affordable, flexible and high-quality childcare.
Simpler than the older multi-payment plan, the new single, means tested subsidy replaces the Child Care Benefit (CCB) and Child Care Rebate (CCR).
Children aged 13 or under who are not in secondary school and meet immunisation requirements may be eligible for the Child Care Subsidy if they are considered a Family Tax Benefit or regular care child. The claimant or their partner must meet residency and activity test requirements, and care must be provided by an approved Australian provider outside of compulsory education programs.
How Does It Work?
> $66,958
Most families earning $66,958 or less will receive a subsidy of 85% (subject to CCS hourly rate cap).
$66,958-$111,957
Families earning over $66,958 will see their subsidy gradually decrease to 50% when their income reaches $171,958.
$111,958 - $351,247
Families earning over $171,958 will see their subsidy gradually decrease to 20% when their income reaches $341,248.
< $351,248
Families earning over $351, 248 or more will receive zero subsidy.
How are Child Care Subsidy assistance levels determined?
The amount of Child Care Subsidy a family receives depends on a three-step activity test, based on combined family income, the type of care needed, and the activity level of both parents. A wide range of activities qualify, including paid work, study, job-seeking, volunteering, and unpaid work in a family business. Families who don’t meet the activity test may still qualify for exemptions.
Additionally, low-income families earning $66,958 or less can access 24 hours of subsidised care per fortnight without meeting the activity test, and families from the former Budget Based Funded system are now eligible for assistance.
If you’re looking to apply for child care assistance for the first time, visit education.gov.au for more information.