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Budget 2015: Families

Simpler Child Care Subsidy

Date of effect: 1 July 2017

A new single Child Care Subsidy (CCS) will be introduced to replace the existing Child Care Benefit, Child Care Rebate and the Jobs, Education and Training Child Care Fee Assistance payments. The current child care related benefits will cease on 30 June 2017.

The new subsidy is means and activity tested to align it with hours of work, study etc. An indexed cap also applies to the hourly fees that can be claimed of $11.55 for long day care, $10.70 for family day care and $10.10 for outside school hours care.*

For families with an annual income of up to $65,000 who meet the activity test, the subsidy covers 85% of the actual fee paid up to an hourly fee cap. The subsidy then tapers to 50% for families with annual incomes of $170,000 where it stays until family income reaches $185,000. Families with income levels of $185,000 or more will have the CSS capped at $10,000 per child per annum.

* Based on 2017/2018 fee and income levels

Home based care trial

As previously announced, the Government is also introducing a trial of a home based carer subsidy that provides funding for a nanny in a child’s home from 1 January 2016. The pilot program is limited to approximately 10,000 children. Families selected for the program have difficulty accessing childcare with sufficient flexibility (shift workers such as nurses and paramedics etc.,). Support will be based on the CSS parameters and provides $7 per hour per child.

Child care safety net

Additional funding will provide targeted support to disadvantaged or vulnerable families. The assistance will be provided through the Child Care Safety Net, which consists of three programmes:

  • The Additional Child Care Subsidy (ACCS)
  • A new Inclusion Support Programme (ISP)
  • The Community Child Care Fund (CCCF)

No jab no pay immunisation requirement

Date of effect: From 1 January 2016

As previously announced, families will no longer be eligible for subsidised child care or the Family Tax Benefit Part A end of year supplement unless their child is up to date with all childhood immunisations.

READ MORE

> News Article – no play and no pay for childcare

‘Double dip’ on parental leave pay

Date of effect: 1 July 2016

Saving $967.7m over four years, primary carers with employer provided paid parental leave will be prevented from claiming Government support.

Large family supplement axed

Date of effect: 1 July 2016

The Large Family Supplement of Family Tax Benefit Part A will be axed. Families will continue to receive a per child rate of FTB Part A for each eligible child in their family.

SOURCE: Knowledge Shop

To discuss how this may impact your circumstances please contact PPT on (03) 5331 3711.

DISCLAIMER: The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

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