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Additional Child Care Subsidy (transition to work)

Additional Child Care Subsidy (transition to work) will provide support to families who are transitioning to work from income support by engaging in work, study or training activities.

The transition to work payment provides a subsidy of 95 per cent of the actual fee charged up to 95 per cent of the Child Care Subsidy hourly rate cap. Hours of assistance will be determined by the Child Care Subsidy activity test. Individuals may continue to receive the subsidy for 12 weeks after they gain employment and their income support payments reduce to zero.

To be eligible for Additional Child Care Subsidy (transition to work) an individual must:

  • be eligible for Child Care Subsidy
  • be in receipt of an eligible income support payment including any of the following:
    • ABSTUDY (means tested)
    • Austudy
    • Carer Payment
    • Disability Support Pension
    • Farm Household Allowance
    • Newstart Allowance
    • Parenting Payment
    • Special Benefit (not residentially qualified), or
    • Youth Allowance
  • have a family income lower than the Child Care Subsidy lower income threshold
  • have a Job Plan in effect
  • meet the Additional Child Care Subsidy (transition to work) activity requirements
  • not have exceeded the time limit for which Additional Child Care Subsidy (transition to work) can be paid for their activity.

Recognised activities that may be supported under the Additional Child Care Subsidy (transition to work) include:

  • an approved course of education or study
  • actively looking for work, paid work
  • actively setting up a business
  • unpaid work, including a work experience placement or an internship
  • vocational training or other program which has a reasonable likelihood of improving an individual's employment prospects.

Families need to apply directly to Centrelink, through their Centrelink online account, to be assessed for Additional Child Care Subsidy (transition to work).

Information for families

Providers who believe a family using their service may meet these criteria should advise them to apply directly to Centrelink for Additional Child Care Subsidy (transition to work). The provider is not directly involved in the application process but will be notified if Additional Child Care Subsidy (transition to work) is approved for a child enrolled in their service.

Centrelink may also be able to provide advice on other support and assistance based on the family's circumstances.