New Child Care Package UPDATE
New Child Care Package UPDATE
Most people will know that the new child care package is due to take effect on 2 July 2018. (Missed the memo? Don’t worry, we’ve got it covered, you can read full details about the new package here)
Some families will be better off and some will be worse off under the new system.
But in news just announced, the Government has advised that the transition to the new system cannot happen automatically.
Throughout April, families will be contacted via their My Gov account and asked to complete an online Childcare Subsidy assessment using your Centerlink online account.
The assessment will ask you to provide some new details and confirm your current details including (but not limited too):
- Combined family income
- Activity level of parents
- Type of childcare service.
All families currently receiving Child Care Benefit and Child Care Rebate will be contacted via Centerlink with details of how to complete the online assessment.
Of most importance is the fact that if you DON’T complete your online assessment before 2 July 2018 – you may NOT be able to receive ongoing fee assistance.
Here at Mums of Brisbane, we are a little concerned that there are less than 3 months before we transition to a new system, and we are only just being told that we need to complete a vital form that makes us eligible for the new childcare package. Given it was announced over 2 years ago, we kind of feel that this is something that should have been sorted out sooner.
It is really important that you let everyone who receives a childcare subsidy know about this form in case they miss the communication from Centerlink and get caught out.
Please share this article so everyone is aware of the need to complete this form. Every day in Facebook groups we see people that are unaware that there is even a new childcare package starting in July, so we are really concerned that families might miss their chance to complete the forms, and stop receiving their entitlements.
What is the New Child Care Package?
We have full details of the new package here – including a link to an online estimator so you can estimate how the changes will affect you.
But in a nutshell, the new child care package is aimed at making childcare more affordable for low to middle income earners, while cutting out families on high incomes.
The Child Care Benefit and Child Care Rebate will be rolled into one Child Care Payment. This is meant to make it simpler to navigate the child care subsidies that you may be entitled too.
The subsidy will be paid directly to the child care provider and the savings passed to the parents. If you currently claim it as a lump sum, you will no longer be able to.
There is a new Activity Test that dictates how much subsidized childcare you are able to access – the more you work, study or volunteer the more hours you have access too across the fortnight. However, the hours you are eligible for depend upon the carer doing the least amount of hours.
The amount of subsidy that will be paid hourly is also capped, so if your centre charges a higher hourly rate, you will not receive the full subsidy for the amount you pay. If your child goes to a long daycare that is open for 11 hours a day, and the daily fee is more than $127.05 ($11.55 x 11) a day, you will be required to fully fund the cost over this amount.
Once again – for a full rundown of these changes – click here
The most important thing is to remember to keep an eye on your inbox and check your My Gov or Centerlink account to make sure you don’t miss out!