The New Child Care Package
From 2 July 2018, there will be a New Child Care Package brought in to effect. The Package is intended to help parents with children aged 0 – 13 work, train, study and volunteer. The Package includes a new Child Care Subsidy, which replaces the current Child Care Benefit and Child Care Rebate. The subsidy will be paid directly to the service provider.
The new Childcare Subsidy (CCS) will
- Be simpler than the current multi-payment system
- Reduce out of pocket expenses for most families
- Be more targeted, providing further assistance to low and middle-income families
Activity level of parents
The number of hours of subsidised care families can access, will be determined by an activity test. The higher the level of activity, the more hours of subsidised care families can access, up to a maximum of 100 hours per fortnight.
- Paid work, training and volunteering
- Paid and unpaid leave, including parental leave
- Casual/irregular hours of paid work (estimated over a three-month period using the week with the most number of hours worked)
- Activity includes lunch hours and travel to and from the activity to childcare (up to an hour each way)
The new caps
The current cap of $7,500 per child has been updated depending on your family’s combined income.
- Families earning less than $186,958 = no cap
- Families earning $186,958 to $351,248 = $10,190 cap
- Families earning over $351,248 are not eligible for CCS
Note: the government will be holding back 5% of CCS paid to families until reconciliation at the end of every financial year. This balance will be paid back to families in their tax return if they are eligible.
What you need to do now?
To transition, you will be required to complete an online Child Care Subsidy assessment using your Centrelink online account through myGov.
You will be asked to provide some new information and confirm your current details, including:
A Family Child Care Subsidy Estimator has been provided to assist in working out the impact to your individual situation. We encourage all our families to review this ‘Subsidy Estimator’ so that you are well informed on what this change means for you.
More information about the new childcare subsidy can be found on the Department of Education and Training website https://www.humanservices.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get/your-activity-level-affects-it