Child Care Subsidy: The good, the bad and the ugly

Child Care Subsidy: The good, the bad and the ugly

The new Child Care Subsidy is coming!! July 2nd has been set as the intended implementation date, there has been lots of questions flying around about what this will actually mean for families who access long day care.

The child care subsidy or CCS has been designed to encourage families to return to the workforce. A study was conducted by the Australian government that recognised that a contributing factor to families not returning to work was the affordability and accessibility of child care, thus the CCS was created.

The CCS looks at combing the current Child Care Benefit and Child Care Rebate into one. It is means and activity tested (just like the current CCB and CCR). Depending on what your household income is and what level of activity your family completes, will determine what hours of subsidised care and at what percentage will be subsidised.

So, what does this actually mean? for some families this is going to help them substantially with both a reduced rate of out-of-pocket costs as well as the removal of the CCR cap. (for families earning under $186,958) This being the whole purpose of the system, to encourage families to return to work.

For other families where both parents may not work, study or may not be actively looking for work they are the ones who are going to be slightly worse off. This is because under the new subsidy a requirement is BOTH parents need to be engaging in an approved activity, therefore no hours will be granted to families meaning that if they want to keep their children in care they will be paying a higher fee. This is one of the down sides to the new system.

The system that will be implemented is going to have some issues, as all new systems do. But here at Kool Kidz Tarneit we have been tediously engaging with all of our families to ensure that all families will be getting what they are entitled to come July 2nd.  This has meant that we have had information nights, we have posters and reminders around the service and we have been sitting with our Families to ensure that they have been able to submit their claims for CCS.

We would like to thank all of our Families for their understanding while we have been trying to connect them to the centre, ensure that their claim has been submitted and make sure that they will be better off in terms of subsidised hours and percentage of subsidised care. It has not been an easy process for us nor for some of our families.