Childcare costs
Subsidy basics The level of out-of-pocket childcare fees a parent has to foot can be the difference between returning to work and caring for children full-time. Returning to work is a personal choice, but for many it’s a financial necessity. Understanding how the childcare subsidy scheme works can make a huge difference to this life choice. In the last 18 months significant changes have been made to the federal government’s childcare subsidy scheme. The new Child Care Subsidy is means-tested, with families in the lowest bracket (earning up to $66,958) eligible for an 85% subsidy. A sliding scale reduces subsidy level down to 20% for families earning $341,248-$351,248. Families earning more than this are not eligible.
Crazy invoices Childcare invoices are not easy to understand, as they include subsidy eligibility statements as
well as fees from the childcare centre. “The invoices can be very hard to look at, especially for parents,” Immanuel Lutheran Early Learning administrator Karen Whitely said. “I’ve been working here 12 years and it’s taken me probably six to understand them.” Gems like Mrs Whitely are the unsung heroes of childcare budgeting and planning. They look at your specific CCS eligibility and can talk through options for you, as well as make sure you know how much to pay once your child is enrolled and the bills start coming. Mrs Whitely believes the new subsidy framework encourages people to work, but agreed that parents with multiple children below school age were in most cases still unable to afford childcare. “They’re encouraging people to work more – the more you work the more (subsidy) you’re entitled to,” she said. “If you’re a part-time worker, they basically
give you 36 hours a fortnight, and if you’re both full-time working parents you get (the highest subsidy).”
Check your enrolment hours The subsidy is calculated as an hourly rate, and this amount depends on the childcare centre’s daily fee as well as the hourly rate cap that applies to your centre. Some childcare centres offer 12-hour or ninehour day options, and in some cases enrolling your child for a long day will reduce the amount of out-of-pocket cost. Find out more at www.servicesaustralia.gov. au/individuals/services/centrelink/childcare-subsidy
Family day care provides care in a registered Educator’s home for children from birth to 12 years, in small groups and Child Care Benefit is available to families. Children are nurtured and cared for in a natural learning environment, learning through play and exploration. The child’s well-being is a priority in a family day care environment, respecting and working in partnership. Louera Family Day Care Scheme Providing care with Family Day Care Educators Ph:(07) 5449 1959 www.louerafdcs.com.au V1 - SCNE01Z01FE
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