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| Child care package to deliver simplified payment system
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The Government's long awaited child care and families package was unveiled on Mother's Day and is promising a simpler way of delivering early childhood education and care services.
Under the package a single Child Care Subsidy will replace the CCB and CCR from 1 July 2017.
The government says families earning less than $65,000 will receive on going access to child care services and may be eligible for additional financial support through the child care safety net, families earning between $65,000 and $170,000 will be around $30 a week better off, while those on higher incomes will continue to receive a similar level of support to current arrangements.
The stated objective of the $3.5 billion package is to encourage more parents back into paid employment via a more 'accessible' and 'affordable' child care system.
The government says that tightening up the work/study activity test will be a key part of the program to ensure parents who want to work or who want to work more can access affordable child care.
Importantly for early childhood providers the government says it will maintain support for the implementation of the NQF and will work with states and territories to ensure the standards for delivery of early childhood education and care services are upheld.
The government has also promised a reduction in 'red tape' for providers and parents alike with the introduction of a care based system to ensure better monitoring of the system, more efficient payment processes and to protect the new scheme from being abused.
The government says that the July 2017 start date will give providers plenty of time to adjust to the new model and to ensure the 'seamless introduction of new systems and arrangements'.
A pre-implementation phase will also provide opportunity for further consultation on specific design elements of the scheme as well as bedding down other administrative arrangements, including more streamlined registration arrangements for families.
Programmes announced as part of Jobs for Families
- Establishment of a two year In Home Care (Nannies) Pilot
- A new Child Care Safety Net, to support families who are vulnerable and disadvantaged, and three new programmes to support Aboriginal children and families which have children with special needs.
- Continuation of funding for preschool programmes in 2016 and 2017
Jobs for Families main changes to take effect from 1 July 2017:
- Abolition of the Child Care Benefit, Child Care Rebate and Jobs, Education and Training Child Care Fee Assistance programmes.
- Introduction of a single means tested Child Care Subsidy for all families, subject to a new activity test for up to 100 hours of subsidised care per child per fortnight, paid directly to approved care service providers.
- For family incomes up to $65,000 the Child Care Subsidy will be 85% per child of the actual fee, or a benchmark price, whichever is lower. This will reduce to 50% for family incomes of $170,000 and above at the time of implementation.
- Families on incomes under $185,000 will no longer have a cap on the amount of subsidy they receive.
- A cap of $10,000 per child at the time of introduction will be established for the total value of subsidies for family incomes of $185,000 and above.
- Hourly benchmark prices for care at $11.55 for Long Day Care, $10.70 for Family Day Care, $10.10 for Out of School Hours Care and $7.00 for the In Home Care (Nannies) Pilot commencing in January 2016.
(The benchmark price has been based on the projected mean price at the time of implementation plus 17.5% for Long Day and Out of School Hours Care and 5.75% for Family Day Care, recognising their lower cost of overheads).
Subsidy payments will based on a new activity test:
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| Activity (per fortnight) |
Number of hours of subsidy (per fortnight) |
| 8-16 hours |
Up to 36 hours |
| 17-48 hours |
Up to 72 hours |
| 49 hours |
Up to 100 hours |
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- Up to 24 hours per fortnight will also be provided to children from families with incomes less than approximately $65,000 per year who do not meet the activity test to ensure continued access to early childhood learning.
- All child care subsidies and support will remain linked to immunisation requirements which from 1 January will be strengthened under the Government's 'no jab, no pay' policy. The only exemption to this policy will be on medical grounds.
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