Families earning $66,958 or less will receive a subsidy of 85 per cent of the actual fee charged (up to 85 per cent of an hour fee cap). For family incomes above $66,958, the subsidy gradually decreases to 20 per cent when family income reaches $341,248. For families with incomes of $351,248 or more, the subsidy is zero per cent.
Child Care Subsidy
| Combined family income | Subsidy per cent of the actual fee charged (up to relevant percentage of hour rate cap) |
|---|---|
| Up to $66,958 | 85 per cent |
| More than $66,958 to below $171,958 | Decreasing to 50 per cent * |
| $171,958 to below $251,248 | 50 per cent |
| $251,248 to below $341,248 | Decreasing to 20 per cent * |
| $341,248 to below $351,248 | 20 per cent |
| $351,248 or more | 0 per cent |
* Subsidy gradually decreases by 1 per cent for each $3000 of family income.
Activity test
Family entitlement to the Child Care Subsidy will be determined by a three-step activity test, more closely aligning the hours of subsidised care with the combined hours of work, training, study or other recognised activity undertaken, and providing for up to 100 hours of subsidy per fortnight.
| Step | Hours of activity (per fortnight) | Maximum number of hours of subsidy (per fortnight) |
|---|---|---|
| 1 | 8 hours to 16 hours | 36 hours |
| 2 | More than 16 hours to 48 hours | 72 hours |
| 3 | More than 48 hours | 100 hours |
The National Quality Framework
The National Quality Framework puts in place compulsory, national standards to ensure high quality and consistent Early Childhood Education and Care across Australia. This important reform delivers a higher standard of care for children in the critical areas of education, health, and safety and will provide clearer and comprehensive information for families so they can choose the best services for their child.
The first five years of a child’s life shapes their future—their health, learning and social development and the National Quality Framework will ensure equality of national standards. It will require all providers to improve services in the areas that impact on a child’s development and safety and to provide families with quality information to help them make informed choices about services.