New Child Care Subsidy Calculator


Key elements of the Turnbull Government’s reforms

The Turnbull Government is increasing Australia’s investment in early childhood education and care by $2.5 billion over the next four years. Almost one million Australian families benefit, particularly low and middle income families.
                  

This package is designed to focus on the following elements:
  • Replacing the Child Care Benefit and the Child Care Rebate with the new Child Care Subsidy. However, this will not be an automatic change, and claimants will need to complete an online childcare subsidy assessment on MyGov. If you do not have a MyGov account, you will need to create one to access the assessment.
  • An activity test ensures taxpayer support for child care targets those who depend on it in order to work, or work additional hours. It is estimated our reforms will encourage more than 230,000 families to increase their involvement in workforce participation. The activity test includes a minimum of four hours of working, looking for work, training/studying and volunteering
  • Fundamentally fair –  those on the lowest income levels and more hours of subsidy to those who work the most will get the highest subsidy rate, increasing the base subsidy from approximately 72 per cent to 85 per cent for the more than 370,000 families earning around $66,958 or less a year.
  • The annual child care access cap for low and middle income families earning up to $186,958 will be scrapped – benefiting more than 85 per cent of families using child care. Families earning above $186,958 will also benefit from an increased annual rebate cap of $10,190. 
  • Our $1.2 billion Child Care Safety Net recognises vulnerable children and families need extra support. The safety net includes special funding for regional and Indigenous-focused centres to break down barriers to early learning and child care, and 12 hours or around two sessions a week of guaranteed access to care/learning for families earning less than around $66,958 - even if they don’t meet the activity test.

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Examples of how families are set to benefit:
  • A family on $50,000 - both parent/s working, with two children aged under 6 in long day care two days a week at $100 a day will be around $2,000 better off a year
  • A family on $80,000 - both parent/s working, with two children aged under 6 in long day care three days a week at $100 a day will be over $3,000 better off a year
  • A family on $150,000 – both parent/s working, with two children aged 6 and under in long day care three days a week at $100 a day will be more than $1000 better off a year

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