Child care in Perth and across Australia was recently changed in a major way, courtesy of the Government. Many parents who are working will now be able to get more child care subsidies as a result of a $1.6 billion child care subsidies package recently passed by the Senate. It now goes back to the lower house before it becomes official, but that is considered a mere formality by most observers.
To help pay for child care, the Turnbull Government will freeze family tax benefit rates for the next two years. The Government is also working on abolition of end-of-year supplements, but they are not finding much support for this plan of action at this time.
According to the Government, approximately 816,000 families will benefit from the changes. Those who earn from $65,710 to $170,710 will gain approximately $1500 in child care benefits.
One of the big winners: families making less than $65,000 per year will be able to get 85% of their child care costs paid under the plan.
However, 128,000 families will see their subsidies reduced, including some that make less than $65,000 per year, due to not working enough to qualify.
Opponents of the plan object because the plan cuts the amount of subsidised care in half for those who don’t pass the activity test and make less than $65,000 per year. Currently, families are allowed 24 subsidised hours of child care per week independent of how many hours per week they work. This will be cut to 12 hours and families must earn less than $65,710 per year.
There are some safeguards built into the new program which will allow children from disadvantages homes to receive as many as 50 hours per week in subsidised care.
As soon as this program takes effect, it will replace the Child Care Benefit and the Child Care Rebate.
How Do You Become Eligible for the New Program?
Both parents have to work, volunteer or study for at least eight hours each fortnight. Those who don’t work enough and make $65,710 or less can still get 12 hours of child care. But if family income is more than $65,710 and the parents don’t pass the work test, they are ineligible to receive subsidies.
How Much Child Care is Paid For?
Families who make $65,710 or less and pass the work test will get 85% of their child care costs covered under the new plan. The subsidy tapers as your income increases. When you reach $170,710, your coverage is 50%. This 50% is paid up to $250,000 of family income. If you make between $250,000 and $340,000 it gradually tapers down to 20%
If you make $350,000 or more, the Government apparently feels that you can afford child care and you don’t get any subsidies.
The Good News
The new scheme won’t take effect until 2 July, 2018. That gives you plenty of time to acclimate yourself to the scheme and figure out a solid strategy for child care.
Expert Child Care is More Important than Ever
Whether you win or you lose under this plan, it is more important than ever to make the right child care choices. In the Perth area, you can’t do better than your nearest Cuddles Childcare Centre. At each Cuddles Childcare Centre, we hire only the best, most reliable and most professional child care personnel.
It is extremely difficult to get hired at any Cuddles Childcare Centre. We do a full background check and we subject applicants to an extremely comprehensive interview process. We have to fully trust anyone we hire because it is important to us that your children are cared for by people you can trust.
The result is a staff that is professional, talented and attentive. Most of all, they really care.
Call Your Nearest Cuddles Childcare Centre Today
To find out more or to arrange for child care, call your nearest Cuddles Childcare Centre in the Perth area today.