New Childcare Subsidy

Are You Ready for the New Child Care Subsidy?

Public service announcement: if you haven’t heard already, The Government is making changes to its current child care subsidy payments.

A new child care package will replace the Child Care Benefit and Child Care Rebate with a combined child care subsidy from 2 July 2018.

Parents need to be aware that rollover to the new system will NOT happen automatically. You will need to complete an online form via Centrelink online using your MyGov account.

You will be asked to provide some new information and confirm your current details, including:
• Combined family income
• Activity level of parents (work and study)
• Type of child care service used

It is important to note that families who do not complete their assessment before 2 July 2018, may not receive any child care fee assistance.

Throughout April, families will be contacted via their MyGov account and asked to complete the assessment. However, these notifications can easily be missed, and with only three months to go until the changes take effect, Mums of the Shire is keen to ensure we spread the word to ensure no one is caught out. Please do your friends and family a solid and share this important information with them ASAP.

What has changed?

The new Childcare package is now means tested, meaning that some families will be better off and some worse off under the new system. The aim is to make childcare more accessible for low to middle income earners, while assistance for those on high incomes assistance is decreased.

The intention of the new system is to make it easier to navigate your entitlements, by rolling the Childcare Benefit and Childcare Rebate into one payment. What is more, the subsidy will be paid directly to the childcare provider. You can no longer claim the rebate as a lump sum.
The Department of Education and Training has produced this comprehensive brochure which outlines the changes.

You can also estimate your entitlements via this online calculator.

The New Child Care Package

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