Childcare is one of the most expensive costs for a working family; it’s about to get more affordable. Member for Gilmore Ann Sudmalis said “over 4,500 families in Gilmore will be better off from the Turnbull Government’s child care overhaul.” “The child care changes are focused on helping the families that need it most.” The changes mean –
There’s not going to be an annual rebate cap of $7,613
There will be a cap of the hourly subsidy rate to stop providers putting up prices.
“Check out the benefits to your family by visiting the child care estimator,” said Mrs Sudmalis. More information on the Government’s new child care reforms can be found at: www.education.gov.au/childcare Changes come in to effect 2 July, 2018 Media Release
Transitioning to the new Child Care Subsidy
From 2 July 2018, one new Child Care Subsidy will replace the two current child care payments.
This transition cannot happen automatically.
To transition, you will need 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:
Combined family income
Activity level of parents
Type of child care service
Throughout April 2018, Centrelink will be writing to all families currently receiving Child Care Benefit and Child Care Rebate with instructions on completing their online assessment through myGov.
If families do not complete their assessment before 2 July 2018, they may not receive any child care fee assistance.
Child Care Subsidy
The Package includes a new Child Care Subsidy, which replaces the current Child Care Benefit and Child Care Rebate. The Child Care Subsidy will be paid directly to services.
There are also changes to the annual cap which will make child care more affordable for most families.
Three things will determine a family’s level of Child Care Subsidy:
A family’s income will determine the percentage of subsidy they are eligible for
An activity test will determine how many hours of subsidised care families can access, up to a maximum of 100 per fortnight, and
The type of child care service will determine the hourly rate cap.
More information about individual subsidy rates and annual cap changes is available in the New Child Care Package brochure.
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, meeting the residency requirements.