Pursuit Insights offers updates and snippets from our industry, If you should wish to discuss anything further, please do not hesitate to contact our office

Changes to your Child Care Subsidy

Changes to the Child Care Subsidy

The current child care system has two subsidies, the child care benefit and the child care rebate.
The child care rebate covers 50% of your child care fees up to an annual cap of $7,500 and the child care
benefit is an income tested fee reduction, which is usually paid directly to your child care service.

From the 2nd July 2018 this will be replaced with a single means and activity tested subsidy called the child care subsidy.
The new rates for the subsidy are as below:

If your family earns more than $186,958 and less than $351,248 then the child care subsidiary with be subsidised up to an annual
cap of $10,190 per child each financial year.
The activity test works out how many hours of approved car you are entitled to each fortnight:

The Recognised activities can include:
  • paid work including being self employed
  • paid or unpaid leave, including paid or unpaid parental leave
  • doing an approved course of education or study
  • doing training to improve work skills or employment prospects
  • unpaid work in a family business
  • actively looking for work
  • volunteering
  • unpaid work experience or unpaid internship
  • actively setting up a business
  • other activities on a case by case basis
Even if you are currently received the child care benefit or child care rebate, you will need to update your details through your Centrelink account.
You will need to provide a combined family income, the hours of recognised activity and details about the type of care your child is in.

If you have any questions or would like to discuss this topic further, please do not hesitate to contact the team at Pursuit Advisers.

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