Being a working parent may mean your little ones are in day-care as you head off to work for the day.  The budget handed down by the Government on 9 May 2017 had vital information for parents in relation to child care subsidies from 2 July 2018 onwards.

Didn’t have time to see what the changes mean for you and your family?  Here is the long and short of it:

  • The Government opted not to proceed with any increase in Family Tax Benefit (FTB) until 2019. If you are currently a FTB recipient, there will be no change to current payments.
  • Families will be subjected to an income taper test in relation to Family Tax Benefit.
  • A single means-tested “Child Care Subsidy” will replace the previous Child Care Benefit and Child Care Rebate.

Combined Family Income and Subsidy Rates

For families who meet an activity test and residency requirements, the family will receive different amounts depending on their income:

  • If your family income level is less than $65,710 per annum, you will receive a subsidy of 85% of the actual fee charged (up to 85% of an hourly rate cap).
  • If your family income level is above $65,710, the subsidy gradually decreases to 20% when your family income reaches $340,000 to under $350,000
  • If your family income level is above $350,000, you will not receive access to subsidy.

What is the Activity Test?

The activity test determines the number of hours of subsidised care a family can access.  The higher the level of activity, the more hours of subsidised care that can be accessed (limited to 100 hours per child per fortnight).

Maternity leave will be treated as if you are at work and is included for the activity test.

Please find below a link to the Family Child Care Subsidy Estimator to estimate your child care subsidy:

Family Child Care Subsidy Estimator

Happy parenting!
Julie is a Health BA Director, with a focus on GPs and Specialists. She enjoys running and Pilates. 
Julie also is a mother of 2 year old Lyndon.

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