“From July 2, 2018, the government is abolishing the Child Care Rebate and Child Care Benefit. The two payments will be replaced with a single payment, the Child Care Subsidy.

The government is billing this as a boost to childcare and with some justification since total federal spending on childcare will go up by $2.5 billion. All the same, there’ll be winners and losers so it’s important to look at how the new system will affect your family specifically”.

Three things will determine how much a family receives:

1.   The combined family income

2.   How much the parents work, based on the activity of the parent who works least

3.   The type of childcare service the family uses

This table shows the percentage of child care fees the Government will contribute based on a family’s combined income:

To estimate your entitlement to the new child care subsidy, use the online calculator via the Centrelink/Human Services payment and services finder.

For more information go to the Department of Education and Training website  – Child Care Subsidy – combined annual family income.