The new child care rules 2018
For most parents, you’ll likely be aware that there is a change coming, and it is scheduled to take affect from July 2.
For those who are yet to get onto the new centrelink system and input your information, now is a good time to get it sorted before the end of financial year.
If you have previously relied on the childcare rebate to cover some of your childcare costs and you received family tax benefits A and/or B, then you need to understand the changes that are coming so that you can adjust your plan and get up to date with Centrelink before the cut off date.
A quick summary of the new rules
- There will be one benefit instead of the two
- The amount you receive will now be means tested. Previously the Child Care benefit was not means tested.
- The amount that you receive can only be paid to the childcare facility and cannot be paid directly to you.
- The amount paid is no longer based on what the centre charges, but the government set hourly rate. There is a different rate for day care centres, after school care and family day care.
What’s the breakdown?
Now that it’s means tested, it’s important to understand where you fit into everything.
|Earning $65,710 or less||85% of the costs covered|
|65710 to 350,000||Amount gradually reduces|
|179,210 to 250,000||50% back|
|250,000 to 340,000||20% back|
|$350,000 and above||No subsidies|
Additionally, there is still a cap of $10,000 per child once your family earns more than $185,710.
So, what do you need to do?
This isn’t an automatic set up, you’ll need to do a little work yourself.
You will need to login to myGov and complete the online Child Care Subsidy assessment based on your current situation. You’ll need to know your combined family income, the hours of work that you do and the type of childcare services that you currently use.
Most families should have already received something in the post directing you to do this asap, outlining the instructions to help you complete the assessment through myGov.
If you don’t complete the online assessment prior to the 2nd of July, you may not continue to receive any assistance with your child care fees, so you will need to be proactive on this one sooner rather than later.
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