Child Care Subsidy

For: 

The Child Care Subsidy will be the main way the Government will assist families with their child care fees. It provides genuine, much needed reform for a more affordable, accessible and flexible child care system.

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 child care 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.

infographic explaining that the current child care system consists of the Child Care Benefit and the Child Care Rebate – under the new system these will be replaced by the Child Care Subsidy in July 2018

Child Care Subsidy Eligibility

Some basic requirements must be satisfied for an individual to be eligible to receive Child Care Subsidy for a child. These include:

  • the age of the child (must be 13 or under and not attending secondary school)
  • the child meeting immunisation requirements
  • the individual, or their partner, meeting the residency requirements listed in the legislation.

In addition, to be eligible for Child Care Subsidy the individual must be liable to pay for care provided, the care must be delivered in Australia by an approved child care provider, and not be part of a compulsory education program.

Estimating Child Care Subsidy

There are three factors that will determine a family's level of Child Care Subsidy. These are:

The Child Care Subsidy will be paid directly to service providers to be passed on to families as a fee reduction. Families will make a co-contribution to their child care fees and pay to the provider the difference between the fee charged and the subsidy amount.

The new child care system will also provide targeted additional fee assistance for vulnerable families through the Child Care Safety Net.

A Family Child Care Subsidy Estimator is available to make it easy for families to estimate their subsidy entitlement. This gives parents and carers an idea of what their new subsidy might be under the new child care system.

The estimator is user-friendly and only takes a few minutes to fill out.

Child Care Subsidy Estimator

Resources

A range of information resources are available to assist families and providers understand the details of the new system.