The new Childcare Subsidy has completely changed how families receive their Childcare Payments by merging two payments into one and moving the focus of the Subsidy towards assisting both parents to return to work.
The government has also introduced a further top up to the Childcare Subsidy called the Childcare Safety Net and one of the parts of this is the Additional Childcare Subsidy. This is focused on assisting families in need and to allow for the most vulnerable children to continue to access Childcare where they may not be able to afford it. These new payments replace the current subsidies of Special Child Care Benefit, Grandparent Child Care Benefit and the Jobs, Education and Training Child Care Fee Assistance payment.
The four additional payments that families can apply to access are:
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Child Wellbeing
Families could receive a subsidy for the full amount of their daily fee for up to 100 hours a fortnight to assist children that have been identified to be at serious threat of abuse or neglect. This additional funding can be applied for by both the child’s guardian or the childcare service itself.
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Grandparents
Grandparents that are the principal carer for more than 65% of the time and already receive some form of income support could receive a subsidy for the full amount of their daily fee for up to 100 hours a fortnight.
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Temporary Financial Hardship
Families that are suffering significant financial hardship due to an exceptional situation could receive a subsidy for the full amount of the daily fee for up to 100 hours a fortnight. This would be available to them for a maximum of 13 weeks.
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Transition to Work
This subsidy is available for a family currently receiving one of Parenting Payment, Newstart Allowance, Disability Support Pension or Youth Allowance income support and they have created a Job Plan through their Employment Pathway Plan. They could then be entitled to 95% of their daily fee for the number of hours in a fortnight that they meet the Activity Test for the Childcare Subsidy. This will continue for 12 weeks after starting work and their income support has ceased.
You can only access one type of Additional Child Care Subsidy at a time and your application is done through myGov. Unlike the Child Care Subsidy, 5% of the amount you receive is not withheld until your tax return is completed.
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