New Childcare System July 2018

Under the new childcare system, the current subsidies for childcare will be combined into one single subsidy. The level of subsidies the family received will be based on their income, and hours of activities the parents are working, studying, or volunteering during a fortnight.

  • The income test will be based on total taxable income of both parents

  • The activity test will be based on the total hours of activities of the lower income earner between the parents.

There are exemptions and special treatment for vulnerable families that is not discussed in this post. More detail will be available later in this year and in early 2018.

  • The income test

  • Subsidies will be calculated based on the actual fee. If the fee charged is higher than the $10.7 per hour, the subsidies is calculated at $10.7 per hour.

The estimated subsidy under the new childcare system (starting in July 2018)
  • The activity test

The activity test under the new childcare system (starting in July 2018)