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Additional Child Care Subsidy

Additional Child Care Subsidy provides additional fee assistance to support vulnerable or disadvantaged families and children. This support recognises the preventative and protective influence of quality child care on a child’s health, wellbeing and development; and the importance of continuity of care.

There are four different payments under Additional Child Care Subsidy:

  • Additional Child Care Subsidy (child wellbeing)—to help children who are at risk of serious abuse or neglect.
  • Additional Child Care Subsidy (grandparent)—to help grandparents on income support who are the principal caregiver of their grandchildren.
  • Additional Child Care Subsidy (temporary financial hardship)—to help families experiencing financial hardship.
  • Additional Child Care Subsidy (transition to work)—to help low-income families transitioning from income support to work.

Each of these is described in more detail in the following sections.

The provider’s role in Additional Child Care Subsidy

Providers are centrally involved in identifying children who require extra support through Additional Child Care Subsidy (child wellbeing).

Providers are not involved in making applications for the other types of Additional Child Care Subsidy, although they may encourage families who may be eligible to contact Centrelink to apply for additional assistance.

Providers will be advised of individuals using their service who are receiving these other payments. An overview of these types of Additional Child Care Subsidy is provided for providers’ information and to allow them to support families who may be eligible.

Additional Child Care Subsidy levels and rates

A provider must not charge an individual who is eligible for Additional Child Care Subsidy a higher fee than they would ordinarily charge for an individual who is eligible for Child Care Subsidy.

 

Table B1: Availability of different types of Additional Child Care Subsidy, with subsidy levels and relationship to income and activity

Extra support

Additional subsidy

Relationship to income or activity

Additional Child Care Subsidy (child wellbeing)

A subsidy equal to 100 per cent of the actual fee charged, up to 120 per cent of the Child Care Subsidy hourly rate cap, for up to 100 hours of assistance per fortnight.

Regardless of the family’s income or their level of activity.

Additional Child Care Subsidy (grandparent)

A subsidy equal to 100 per cent of the actual fee charged, up to 120 per cent of the Child Care Subsidy hourly rate cap, for up to 100 hours of assistance per fortnight.

Regardless of the family’s income or their level of activity. However, an individual or their partner must be in receipt of a specified income support payment.

Additional Child Care Subsidy (temporary financial hardship)

A subsidy equal to 100 per cent of the actual fee charged, up to 120 per cent of the Child Care Subsidy hourly rate cap, for up to 100 hours of assistance per fortnight. Limited to a maximum 13 weeks per event.

Regardless of the family’s income or their level of activity.

Additional Child Care Subsidy (transition to work)

A subsidy equal to 95 per cent of the actual fee charged (up to 95 per cent of the Child Care Subsidy hourly rate cap).

The hours of subsidised care are determined by the activity test. Income must be below $69,390.

Additional Child Care Subsidy (child wellbeing), Additional Child Care Subsidy (temporary financial hardship) and Additional Child Care Subsidy (transition to work) are each subject to time limits, outlined in the following more detailed sections.

The hourly rate for Additional Child Care Subsidy (child wellbeing), Additional Child Care Subsidy (grandparent) and Additional Child Care Subsidy (temporary financial hardship) is designed to target support to those families that are genuinely in need and ensure that cost is not a barrier to starting or continuing with child care.

For example, the maximum Child Care Subsidy hourly rate cap for Centre Based Day Care is $12.20. Families will be able to access a subsidy of up to 120 per cent of this rate cap or $14.64 per hour if the actual fee charged by the service is over the Child Care Subsidy hourly rate cap rate.

The rate is expected to cover the fees of most services. In exceptional circumstances, an individual might receive a higher level of Additional Child Care Subsidy and/or increased hours of assistance. This will be determined on a case-by-case basis.

Individuals who may be eligible for more than one type of Additional Child Care Subsidy

Where an individual becomes eligible for more than one type of Additional Child Care Subsidy, the individual will only receive one type of Additional Child Care Subsidy at a time. The order in which the types of Additional Child Care Subsidy will be applied is:

  • Additional Child Care Subsidy (child wellbeing), then
  • Additional Child Care Subsidy (grandparent), then
  • Additional Child Care Subsidy (temporary financial hardship), then
  • Additional Child Care Subsidy (transition to work).