Changes to the child care rebate

From 2 July 2018, there will be a New Child Care Package, providing more support for more families.

Child Care Subsidy

The package includes a new Child Care Subsidy, which replaces the current Child Care Benefit and Child Care Rebate. The Child Care Subsidy will be paid directly to services.

There are also changes to the annual cap which will make child care more affordable for most families.

Three things will determine a family’s level of Child Care Subsidy:

  1. Combined family income
  2. Activity level of parents
  3. Type of child care service

Some basic requirements must be satisfied for an individual to be eligible to receive Child Care Subsidy for a child. These include:

  • the age of the child (must be 13 or under and not attending secondary school)
  • the child meeting immunisation requirements
  • the individual, or their partner, meeting the residency requirements.

The Child Care Safety Net

The package includes a $1.2 billion Safety Net to give the most vulnerable and disadvantaged children, including those from regional and remote communities, a strong start through access to quality early learning and child care.

Next steps

The current arrangements don’t change until 2 July 2018. More information about what families need to do to prepare for the change will be available in early 2018.

Learn More

Family Webcast Information Sessions

The Department of Education and Training hosted three Family Webcast Information Sessions to help families learn about the New Child Care Package starting on 2 July 2018.

The free online sessions were held in November 2017 so families could better understand how the Package will impact them and the amount of subsidy they may be eligible to receive.

If you would like more information, please visit the website: https://www.education.gov.au/ChildCarePackage

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