CHILDCARE SUBSIDY EXPLAINED
If you’re bringing your child into care for the first time, we know that this process can be overwhelming. Not only is it imperative for you to find the right centre that suits the needs of your family, but it also means understanding how the Child Care Subsidy works.
Although there is a lot of helpful information on the education.gov.au website, below is a summary of what the Child Care Subsidy is along with some helpful resources.
The Child Care Subsidy is the main way the Government assists families with their childcare fees.
The Child Care Subsidy is a single, means-tested subsidy that is generally paid directly to childcare providers to be passed on to families. The subsidy method is simpler than the previous multi-payment system and provides more assistance to low- and middle-income families.
There are three factors that determine a family’s level of Child Care Subsidy.
These are:• Combined annual family income
• Activity test– the activity level of both parents
• Service type– type of childcare service and whether the child attends school
The Child Care Subsidy is generally paid directly to service providers to be passed on to families as a fee reduction. Families make a co-contribution to their childcare fees and pay to the provider the difference between the fee charged and the subsidy amount.Families can get an estimate of what they may be entitled to by entering their details into the Department of Human Services Payment and Service Finder. For more information, contact our friendly team or click here.