What You Need to Know About the New Child Care Package for Families

What You Need to Know About the New Child Care Package for Families



As most of you are well aware, from 2 July 2018 Australia will have a New Child Care Package. The new package will replace the Child Care Benefit and the Child Care Rebate with a single Child Care Subsidy. Families currently using child care will be contacted early next year by the Department of Education and Training with more detail about these changes.

In the mean time we’ve put together this list of the key changes that you can expect to see from the New Child Care Package;

  • The Child Care Subsidy will be subject to a new activity test. This means that families will be eligible for either 36, 72 or 100 hours of subsidised child care per fortnight depending on their combined hours of work, training, study or other recognised activity undertaken.
  • The activity test will be subject to the following exemptions:
    • Receiving Disability Support Pension
    • In gaol or undergoing psychiatric confinement
    • Receiving Carer Payment
    • Care for someone with a severe/intense disability
    • Other circumstances on a case-by-case basis
  • Both parents must work or study at least 8 hours a fortnight to receive the subsidy.
  • Families receiving an income of more than $185,710 will be subject to a cap of $10,000 on total Child Care Subsidy payments.
  • Families who earn more than $350,000 a year will not be eligible for the Child Care Subsidy.
  • The new $! Billion Child Care Safety Net aimed at helping families on less than $65,710 a year who do not meet the new activity test, means that families in this category will be entitled to 24 hours a fortnight, rather than 24 hours a week they are eligible for under the current system.
  • Children must meet immunisation requirements.
  • Individuals, or the partner must meet residency requirements.

To get an estimate of what your new subsidy might be, the Department of Education and Training have created an easy to use online calculator.

For more information visit the Australian Government Department of Education and Training website or Facebook page.