Guardian Childcare & Education

What the New Child Care Rebate Means for Your Family

24th May 2017

New child care rebate Australia

From 2018, accessing childcare will be more accessible. Providing higher levels of financial support to the families who earn the least aims to make the process of returning to work less financially draining. More importantly, this initiative will give your child an opportunity to take advantage of the benefits of an early childhood education. Family life is busy – in between juggling work and family life, there’s not a lot of time left to catch up on legislative changes, so we’ve outlined them for you.

Out With Benefits, in With Subsidies

With any change in legislation comes an inevitable change in acronym, so here’s what you need to know to navigate the Child Care Benefit (CCB), Child Care Rebate (CCR) and the new Child Care Subsidy (CCS). As you can see, the current childcare landscape is a myriad of acronyms and a sliding scale of rebates.

From July 2018, the current Child Care Rebate and the means-tested Child Care Benefit will be completely scrapped to make way for a new income and activity based system. The new activity test will give families access to either 36, 72 or 100 hours of subsidised care per fortnight and will be calculated based on the hours of combined hours of work, training or study. To be eligible for the new subsidy, both parents must work or study at least eight hours a fortnight.

Families Earning Less than $65,710

With the current $7,500 cap now redundant, the new Child Care Subsidy will cover up to 85 per cent of childcare costs. A family earning $50,000 with two children aged under 6 in long day care three days a week will be approximately $3,295 better off each year.

Families Earning Over $65,710

Under the new CCS, the current $7,500 cap is scrapped for families earning above $65,710. With the per hour subsidy tapering down 1 per cent for each extra $3,000, a family earning $80,000 with two children aged under 6 in long day care three days a week will be $3,424 better off each year.

Families Earning Over $185,710

An annual subsidy cap of $10,000 per child will kick in and the subsidy will taper down to 50 per cent.

Families Earning Over $340,000

A cap of $10,000 per child will apply and the subsidy will taper down to 20 per cent.

Families with a combined income over $350,000 won’t be able to access the subsidy.

Help for Disadvantaged Families

The new package also offers additional support for children at risk of serious abuse or neglect. It also offers contributions for families where grandparents on income support are the principal carers as well as families experiencing temporary financial hardship. An additional $61 million dollars has also been allocated to provide remote Indigenous families with better access to childcare.

The new reforms also include a ‘Child Care Safety Net’ which provides better support to children from disadvantaged backgrounds and those with additional needs such as disability.

Read more about the Child Care Subsidy here.

Making childcare more accessible is good news for everyone. These initiatives give your child more opportunity to join a social culture and to play, learn and grow in a nurturing environment. It also gives you a chance to foster your network of parents and families and get back into the workforce. Contact us to chat about how these child care rebate changes to child care might be of benefit to your family.

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