Under the Child Care Subsidy, the percentage of subsidy a family will be entitled to will be based on their combined annual income, with more financial support available to lower income families.
This table shows the percentage of child care fees the Government will contribute based on a family's combined income:
|Combined family income^||Subsidy rate*|
|Up to $65,710||85%|
|Over $65,710 to under $170,710||Gradually reducing to 50%|
|$170,710 to under $250,000||50%|
|$250,000 to under $340,000||Gradually reducing to 20%|
|$340,000 to under $350,000||20%|
|$350,000 or more||0%|
^ These figures will be increased by the Consumer Price Index (CPI) when the package begins in July 2018.
* Subsidy rate of actual fee charged or the maximum hourly rate cap (whichever is lower).
Use the Family Child Care Subsidy Estimator to find out what it means for your family.
From 2 July 2018, families earning less than $185,710 per year will not be subject to a cap on the amount of Child Care Subsidy they can access. Families earning between $185,710 and $350,000 will still have an annual cap which will increase to $10,000 per year per child.
The cap will also be increased by the CPI for implementation in July 2018.
The other two factors that will determine a family's level of Child Care Subsidy are:
A range of information resources are available to assist families and providers understand the details of the new package.