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Child Care Subsidy Increasing From July


Starting from July 2023, an exciting development is set to revolutionise the landscape of child care in Australia. The Child Care Subsidy is being increased, resulting in reduced costs for the majority of families. Moreover, this change will extend support to families previously ineligible for the subsidy, bringing much-needed relief across the nation. In this blog post, we will delve into the details of the Child Care Subsidy changes, understanding how they will benefit families and enhance access to quality child care.

Expanded Eligibility and Higher Subsidy Rates:

One of the key highlights of the Child Care Subsidy changes is the increase in the family income limit to qualify for the subsidy. Previously set at $356,756 per annum, it will now rise to $530,000. This adjustment opens the doors to more families, allowing them to avail themselves of the subsidy and access affordable child care services.

Additionally, the maximum amount of the Child Care Subsidy is being raised from 85% to an impressive 90%. This increase will significantly reduce the financial burden on families, making quality child care more affordable and accessible.

Enhanced Support for Lower-Income Families:

The new changes prioritize supporting lower-income families. Those earning $80,000 or less will now enjoy a Child Care Subsidy rate of 90%, ensuring that child care costs are significantly reduced for these households. This change acknowledges the importance of providing adequate support to families who may face financial constraints.

Graduated Subsidy Rates for Higher-Income Families:

Even families earning over $80,000 will benefit from the revised Child Care Subsidy structure. They will receive a subsidy rate of 90%, which will gradually decrease by 1% for every $5,000 of income above the $80,000 threshold. This progressive reduction ensures that even families with higher incomes receive some level of subsidy, creating a fair and inclusive system. The subsidy rate will eventually reach 0% for families earning $530,000 or more.

Specific Benefits for Multi-Child Families and Indigenous Children:

The changes to the Family Assistance Law also address the needs of multi-child families and Indigenous children. Families earning below $362,408, with more than one child aged 5 or under in care, can still receive a higher subsidy rate for one or more of their children, recognising the additional financial responsibilities they face.

Furthermore, Aboriginal and/or Torres Strait Islander children are entitled to at least 36 subsidised hours of early childhood education and care per fortnight, irrespective of their family’s activity level. This provision ensures equal opportunities for Indigenous children to access quality early childhood education.

In conclusion, with the upcoming changes to the Child Care Subsidy in July 2023, child care will become more affordable for families across Australia. The increased income limit, higher subsidy rates, and tailored support for specific groups will collectively contribute to a more inclusive child care system. As families experience the benefits firsthand from July, the revised Child Care Subsidy is set to make a positive impact on the lives of Australian families, providing crucial support and nurturing the growth and development of our children.

Speak to your Centre Director if you would like more information.

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