Child Care Subsidy

What is the Child Care Subsidy?

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The Australian Government is committed to ensuring that Australian families are able to access affordable, flexible and high quality child care. The Government provides a number of subsidies and programs to help with the cost of child care, with the Child Care Subsidy being the main type of assistance that most families will use.

 

How will the Child Care Subsidy be Paid?

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Child Care Subsidy will be paid directly to child care providers to pass on to families as a fee reduction so that their fees are reduced at the time they use child care. Families will pay their provider the difference between their subsidy and the fees charged. Families will need to make a claim for Child Care Subsidy when (or before) each child starts attending care

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What are the eligibility requirements?

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To be eligible for the Child Care Subsidy the following requirements must be met: 

the child must;

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- be a ‘Family Tax Benefit child’ or ‘regular care child’ and

- be 13 or under and not attending secondary school and

- meet immunisation requirements 

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the person claiming the Child Care Subsidy, or their partner must,

- meet residency requirements and

- meet the Child Care Subsidy activity test (or be eligible for an exemption) and

- be liable to pay for care provided under a Complying Written Arrangement (their written agreement) with their child care provider child care must be provided by an approved provider in Australia and not be part of a compulsory education program, for example school

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How much can a family receive?

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The level of subsidy a family receives will depend on three factors: 

• Income – a family’s (both partners) combined

• income Activity test – what activities the individual and their partner undertake or exemptions that might apply and

• Service type – the type of approved child care service used, for example Centre Based Day Care.