Guardian Childcare & Education

What the New Childcare 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 the new childcare rebate 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 Childcare Benefit (CCB), Childcare Rebate (CCR) and the new Childcare 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 Childcare Rebate and the means-tested Childcare 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 Childcare 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 ‘Childcare Safety Net’ which provides better support to children from disadvantaged backgrounds and those with additional needs such as disability.

Read more about the Childcare 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 childcare rebate changes to child care might be of benefit to your family.


Top Recent Articles


getting the most out of your ccs

What is the Child Care Subsidy?

Educator reading a book to child outside

Financial Support: How to get the most for your family

CCS calculator

CCS Calculator: Calculate your Child Care Subsidy

Children and educator playing with art at Guardian Coromandel Valley

World Teachers’ Day: What it means to be a teacher 

Mummy Bloggers Share: 'What I wish I’d known before my child started school'

Archives


2020

  • October 2020 (6)
  • September 2020 (6)
  • July 2020 (1)
  • June 2020 (1)
  • May 2020 (10)
  • April 2020 (22)
  • March 2020 (22)
  • February 2020 (19)
  • January 2020 (19)
  • 2019

  • December 2019 (21)
  • November 2019 (17)
  • October 2019 (26)
  • September 2019 (32)
  • August 2019 (38)
  • July 2019 (26)
  • June 2019 (10)
  • May 2019 (1)
  • January 2019 (1)
  • 2018

  • December 2018 (2)
  • November 2018 (3)
  • October 2018 (4)
  • September 2018 (6)
  • August 2018 (4)
  • July 2018 (9)
  • June 2018 (9)
  • May 2018 (7)
  • April 2018 (6)
  • March 2018 (8)
  • February 2018 (6)
  • January 2018 (9)
  • 2017

  • December 2017 (10)
  • November 2017 (13)
  • October 2017 (11)
  • September 2017 (13)
  • August 2017 (15)
  • July 2017 (14)
  • June 2017 (15)
  • May 2017 (23)
  • April 2017 (17)
  • March 2017 (28)
  • February 2017 (21)
  • January 2017 (5)
  • 2016

  • December 2016 (4)
  • June 2016 (1)
  • May 2016 (1)
  • March 2016 (2)
  • February 2016 (2)
  • January 2016 (1)
  • 2015

  • July 2015 (1)

  • You May Also Want to Read This

    New child care rebate Australia

    24th May 2017

    What the New Childcare Rebate Means for Your Family