The Child Care Subsidy
The package includes a new Child Care Subsidy, which replaces the current Child Care Benefit and Child Care Rebate.
When the Child Care Subsidy commences on 2 July 2018, it will:
replace the Child Care Benefit (CCB) and Child Care Rebate (CCR) with a single, means-tested subsidy
be paid directly to providers to be passed on to families
be simpler than the current multi-payment system
be better targeted and provide more assistance to low and middle-income families.
You can get an estimate of what your family may be entitled to by entering your details into the Department of Human Services Payment and Service Finder.
How does it work
There are three factors that will determine a family's level of Child Care Subsidy. These are:
Activity Test – the activity level of both parents
The Child Care Subsidy will be paid directly to providers to be passed on to families as a fee reduction. Families will make a co-contribution to their childcare fees and pay to the provider the difference between the fee charged and the subsidy amount.
The New Child Care Package will also provide targeted additional fee assistance for vulnerable families through the Child Care Safety Net.
A range of information resources are available to assist families and providers understand the details of the new package.