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Federal Government announce new child care package

The Australian Government has announced a new child care package and has committed an extra $2.5 billion to support its implementation. 

The new arrangements will mean that child care will be more affordable for most Australian families. In fact, most lower and middle-income families that are eligible will receive a higher subsidy than they do now.

Key facts to be aware of:

  • From 2 July 2018, the current Child Care Rebate and Child Care Benefit will be replaced by a single Child Care Subsidy.
  • Families earning less than $185,710 will have no cap on the amount of child care they can claim, while those earning over $185,710 and under $350,000 will benefit from an increase in the current cap of $7,613 to $10,000 per child, per year.
  • The level of Child Care Subsidy that can be accessed will depend on combined family income, the activity level of both parents (based on the parent who does the least amount of activity) and the type of child care the family uses.
  • Recognised activities include but are not limited to: paid work (including leave), approved study or training, actively seeking work, volunteering and self-employment.
  • To ensure that children in Australia’s most vulnerable families and communities have the opportunity to access quality early learning and child care, the new package will include a safety net.

The current system doesn't change until 2 July 2018. More information about what families need to do to prepare for the change will be available in early 2018.

To find out more, and to estimate what your new subsidy may be, visit The estimator is easy to use and only takes a few minutes to complete. 

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