Changes making childcare cheaper are being brought forward for Australian families with two or more children under school age.
The higher Child Care Subsidy (CCS), which can apply to Out of School Hours (OOSH) fees at all PCYC NSW OOSH programs, is the federal government's main program to help families with the cost of child care. It is means-tested and is paid directly to providers, which then pass that fee reduction on to families.
This month the government announced it would move the start date of the changes that were originally flagged in the Federal Budget. The changes are aimed at cutting childcare costs for low and middle-income earners and getting more women into the workforce.
The Child Care Subsidy changes
Under the changes, families with two or more children in care under six years old will be able to receive an additional 30 per cent on top of the current subsidy.
So, for example, if your first child is eligible for a subsidy rate of 50 per cent, your second will receive 80 per cent. It will be capped at 95 per cent.
The $10,655 annual CCS cap will also be scrapped on 10 December 2021 and applied retrospectively for the whole 2021-22 financial year. Anyone who reaches the cap before this date will have any additional out-of-pocket costs for the 2021-22 financial year reimbursed.
Who is eligible for the extra money?
To be eligible, you need two or more children aged five years and under in care, at the same time, and need to have a household income of less than $353,680 a year.
According to the 2016 census, 250,000 Australian families fit the criteria and, on average, they will be more than $2,200 a year better off.
It means a family earning $110,000 a year with two kids in care four days a week will be better off by around $100 each week.
What do families need to do?
Families already getting CCS don’t need to do anything. Services Australia will automatically increase the CCS for eligible second and younger children.
Families will be eligible for the higher rate from 7 March 2022.
For families new to CCS, a child must receive a session of care before they can be considered the standard rate child. Please talk to your local PCYC OOSH if you need more information.
How does the Child Care Subsidy work
The Child Care Subsidy will continue to be paid directly to childcare providers such as PCYC OOSH, to be passed on to families as a fee reduction. Families will contribute the difference between the provider fee charged and the subsidised amount. This is known as the families gap fee.
About PCYC NSW OOSH
PCYC OOSH is a government-subsidised before and after-school and vacation care program for children from kindergarten to year 6, inclusive. Contact your local OOSH for fees and opening times.
