Child Care Funding and the Federal Budget 2008-09

Child Care Funding and the Federal Budget 2008-09

This year's Federal Budget has seen the introduction of a number of changes to the way child care is funded and provided in Australia, some of which take effect from July 2008.

Make sure you are completely up-to-date by reading our summary.

Child Care Tax Rebate (CCTR)
The Government has pledged an additional $1.6 billion over four years to increase the rate of the CCTR from 30 per cent to 50 per cent for out-of-pocket child care expenses, and has increased the cap from $4354 to $7500 per child per year.

Payments can be made quarterly instead of annually. Parents will receive CCTR regardless of their income, as long as they are eligible for the Child Care Benefit (CCB), have passed the CCB work, training, study test (for the purposes of the CCTR rebate) and send their child to an approved child care provider.

Child Care Benefit (CCB)
From July 2008 the minimum rate of CCB will be removed for high income families using approved care. Instead of the CCB reducing to a minimum, it will continue to reduce until a family's rate is zero.

The income at which this takes effect will depend on the number of children using approved care. Families who want to receive the CCTR will still need to be assessed for CCB, even if their CCB has cut out. Eligibility for CCTR is not dependent on income.

Universal Access to Preschool
The Government has allocated $533.5 million over five years to enable all families to access early childhood education before they start school. The Government expects this measure to be fully implemented by 2013 and will ensure all children have access to preschool for 15 hours per week for 40 weeks of the year.

Funding for Early Education Training
$126.6 million over four years has been allocated to train and retain a high-quality early education workforce. Initiatives include:

$53.9 million to create additional early childhood education university places starting from 500 places in 2009 and rising to 1500 places by 2011.
$60.3 million to help 8000 child care workers gain a qualification by removing TAFE fees for Diplomas and Advanced Diplomas of Children's Services qualifications from 2009.
$12.4 million to reduce around half the HECS-HELP debts for early childhood education teachers who work in rural and regional areas, Indigenous communities and areas of socio-economic disadvantage for up to five years.

260 Early Learning and Child Care Centres
The Government has committed to establishing 260 new child care centres by the end of 2014 in areas of need. This initiative includes six autism specific centres. Where possible the new centres will be located on school, TAFE or other community land.

$114.5 million over four years has been allocated for the first 38 centres and the remainder will be established progressively. The Government claims this initiative will provide families with greater access to high-quality child care and integrated care and learning opportunities for preschool-aged children.

Jobs, Education and Training Child Care Fee Assistance (JETCCFA)
JETCCFA provides eligible parents with extra help with the cost of approved child care when they are undertaking activities such as study, work, or job hunting to help them enter or re-enter the workforce. Currently, participants receive up to 12 months of assistance.

The Government has pledged an additional $23.9 million over four years to extend funding from one to two years which is expected to assist an exiting 5000 participants and enable 7000 parents to commence study.

Australian Early Development Index (AEDI)
The AEDI is a population-based measure of child development, which enables communities to assess how children are developing by the time they reach school age. The AEDI help communities tailor their resources and programs to the developmental needs of their children.

The Government has pledged $15.9 million over four years in 2007-08 to undertake a national census of the school readiness of Australian children entering their first year of formal schooling in 2009.

Quality Control in Preschool and Child Care
The Government has committed $22.2 million to improve the quality of child care and preschool services by strengthening accreditation standards. It will introduce an A-E rating system to promote continuous improvement and will boost the access parents have to information about their child care centre.

Early Years Learning Framework
The Government has pledged 2.5 million over 2008-09 for the development of a national Early Years Learning Framework with specific emphasis on play-based learning, early literacy and numeracy skills and social development.

The Framework will be linked to the National Quality Standards for Child Care and Preschool to ensure they encompass a nationally consistent and quality early childhood education component. The Framework will be developed in consultation with State and Territory Governments and early childhood experts and educators.

Home Interaction Program
The Government has pledged $32.5 million over for five years for the development of a home interaction program to help disadvantaged families and their children by improving school readiness and engaging parents in their child's education.

The Government will engage the Brotherhood of St Laurence to assist with the delivery of this program which will help three to five year olds and their families from 50 disadvantaged communities across Australia.

Further Reading
Budget 2008-2009

Family Assistance Office Budget Summary

Office of Early Childhood Education and Child Care New Agenda