New Child Care Package Overview | C&K - childcare and kindergarten

New Child Care Package Overview

The new Federal Government Child Care Package will mean signficant changes to the current childcare subsidy arrangements. The new Child Care Package includes a Child Care Subsidy which will replace the current Child Care Benefit and Child Care Rebate. Further details of the changes for families are detailed below with links to access information on the Department of Education's website.

The key changes for families are as follows:

Child Care Subsidy (CCS)

The New Child Care Subsidy will be the main way the Federal Government will assist families with their childcare fees.

When the new 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 providers to be passed on to families.

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The Federal Department of Education and Training has created a useful tool for families so they can estimate their Child Care Subsidy under the new rules.

Click the link below to access the calculator.

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A family's level of Child Care Subsidy will be determined by three factors:

  1. Combined family income
  2. Activity test
  3. Service type

1. Combined family income

A family's income will determine the percentage of Child Care Subsidy they are eligible for, with more financial support available to lower income families.

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These figures will be increased by the Consumer Price Index (CPI) when the package begins in July 2018.

For more information on Combined family income, click the link below.

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2. Activity level of parents

The number of hours of subsidised care families can access will be determined by an activity test. The higher the level of activity, the more hours of subsidised care families can access, up to a maximum of 100 hours per fortnight.

In families with two parents, the parent with the lowest hours of activity will determine the hours of subsidised care.

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 3. Type of child care service

The new Child Care Subsidy is also based on the type of child care a family accesses which is subject to an hourly rate cap.

Child care centres hourly rate cap is: $11.55^ per hour.

For more information on types of services, click the link below.

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The Child Care Safety Net

The new Child Care Package includes a Child Care Safety Net to ensure that children in Australia's most vulnerable families and communities have the opportunity to access quality early learning and child care.

For more information, click the link below.

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Support Tools & Resources for Services

The Department of Education and Training has compiled a suite of business support tools and resources that have been designed to assist child care services to review their business operations to ensure readiness for the Child Care Package changes. The suite of business support resources includes key financial and business planning tools and resources that are useful for services to review in preparation for the changes.

These include:

  • Child Care Services Business Support Resource: This resource includes information on the new child care arrangements that come into effect from 2 July 2018, and some ideas services may want to consider in the lead up to the changes, particularly in responding to the greater operational flexibility that will be allowed.
  • Scenario Analysis and Budgeting Tools: Services can use these tools to understand how certain factors may impact their financial results. There are three different scenario analysis tools; a simple tool, and two detailed tools; one for small to medium services and another for large services.
  • Business Planning Templates: These include a business plan, project plan and risk management plan.

For more information on the Support Tools & Resources, click the link below.

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