The new child care package

The Australian Government is investing an additional $2.5 billion into early education and care over the next four years. As a result, the Child Care Subsidy will replace the current child care assistance systems, the Child Care Rebate and the Child Care Benefit, starting 2 July 2018. This new system will support 1.2 million families who use the current approved early education and care.

Perks of the New System

  • Activity Level of Parents – This refers to the amount of time the parents spend on “work-related” activities (study, full-time or part-time) each fortnight. The amount of subsidy is based on the lower of the two partners’ figures.
  • Income – This refers to the total combined income of the family.
  • Early Education – This refers to the amount of early education childcare undertaken by the family.

Subsidy under the New Childcare System

  • Families earning $66,958 or less are entitled to a subsidy of 85% of the childcare fees.
  • For those who earn more than $66,958 and less than $171,958, the subsidy tapers down from 85% to 50% (1% less for every $3000).
  • Families that earn $171,958 to less than $251,248 would receive a subsidy of 50% of the childcare fees.
  • Those that earn $251,248 to less than $341,248 are entitled to a subsidy that tapers down from 50% to 20% (1% less for every $3000).
  • Families earning $341,248 to less than $351,248 would receive a subsidy of 20% of the fees.

Taking Advantage of the New Child Care Package

The transition to the new child care system won’t happen automatically. Families who want to take advantage of the new system from 2 July 2018 have to finish a Child Care Subsidy assessment via their myGov accounts. The evaluation requires new information and confirmation of current details, like the combined family income, the parents’ activity level and type of child care service you receive. This assessment ensures that you continue to receive childcare assistance from that day. We encourage you to complete it as early as possible. Otherwise, you might not receive the assistance. If you any questions, reach out to our team today. We’re happy to explain the details. Give your child a positive and fun-filled learning experience. Enrol your child at Lyndel Childcare Centre today.