From 2 July 2018 Australia will have a new child care package. Under the new package, the Child Care Subsidy (CCS) will replace the existing Child Care Benefit and Child Care Rebate. The CCS will be the main way the Government assists families with their child care fees.
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
- Require parents to confirm enrolments via a myGov account
- Be paid directly to 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.
How does it work?
There are three factors that will determine a family's level of Child Care Subsidy:
- Combined Family Income
- Activity Test – the activity level of both parents
- Service Type – type of child care service
The new Child Care Package will also provide targeted additional fee assistance for vulnerable families through the Child Care Safety Net.
What do families need to do? Register now with myGov
When the new package begins, families will need to confirm enrolments for children in child care services via their myGov account. Without a confirmed enrolment through myGov, the Child Care Subsidy will not be paid.
How can families prepare for the change?
A Payment and Service Finder is available to make it easy for families to get an idea of what their new subsidy might be under the new child care package.
Need more information?
For further information on the Government’s new Child Care Package, please visit the Department of Education and Training’s website or review the below resources for families;
• Key Changes for Families Fact Sheet
• New Child Care Package Brochure