Changes to the childcare subsidy
Many people seem unaware that the childcare subsidy changed for the better from 10 July this year.
Families with annual earnings over $80,000 up to $530,000 may be eligible for this subsidy. The significant change here is that the upper limit has changed from combined earnings of $356,756 to $530,000; hence, more families are now eligible for the subsidy.
|Your family income||Child care subsidy percentage|
|$0 – $80,000||90%|
|More than $80,000 but less than $530,000||Between 90% and 0%|
|The percentage reduces by 1% for every $5,000 of family income over $80,000|
|$530,000 +||No subsidy|
Note that you may qualify for a higher rate if you have more than one child aged five or younger.
To be eligible
You may be eligible if you meet the following;
- Care for the child at least two nights per fortnight
- Are liable for fees for child care provided at an approved child care service
- You will also need to satisfy the residency rules associated with this subsidy
- Not attending secondary school unless one of the special exemptions apply
Furthermore, there are immunisation requirements that need to be satisfied.
Approved childcare include;
- Centre-based day care
- Family day care
- Outside school hours care, including before, after and vacation care
- In-home care
Please refer to the Department of Education website for information on In-home care.
Should you require further information about Child Care Subsidy, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation-free appointment.
The information in this document does not consider your personal objectives, financial situation or needs, so you should consider its appropriateness regarding these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision, and it is recommended that you seek assistance from your financial adviser.