Australia’s new child care subsidy is aimed to alleviate the financial burden of child care for families. Even though child care provides parents with the opportunity to return to work, it comes at an expensive cost. As a result, taking a toll on a family’s finances.
With child care, you may find yourself paying for:
petrol or public transport to and from child care
fees if you’re late to pick up your child
additional fees on public holidays.
A recent survey suggests that parents are spending twice as much on child care, as they do on food. In addition, almost 40 per cent of families are paying more in child care payments each week, than they are mortgage weekly repayments.
To help you find a way to save on child care, we have our top 5 tips below!
What are are the new Child Care Subsidy changes?
New changes to the child care subsidy commenced on the 2nd of July, 2018. These new changes by the Australian government are in place to assist families financially.
According to the Australian Government, the new changes aim to:
replace the Child Care Benefit (CCB
) and Child Care Rebate (CCR
) with a single, means-tested subsidy
to be paid directly to providers to be passed on to families
be simpler than the current multi-payment system
provide more assistance to low and middle income families.
Am I eligible?
There are some requirements that you will need to meet in order to be eligible to receive the child care subsidy. These requirements include:
the age of the child (must be 13 or under and not attending secondary school)
the child meeting immunisation requirements
the individual, or their partner, meets the residency requirements.
In addition, to be eligible for the child care subsidy the individual must be liable to pay for care provided. Also, the care must be delivered in Australia by an approved child care provider. It must not be part of a compulsory education program.
How does the Child Care Subsidy work?
There are a few differences to the new child care subsidy. While the previous subsidy had families receive the rebate directly, with the new changes the child care provider will receive the subsidy. Therefore, the subsidy will reduce the child care fees. As a result, families will pay their provider the gap between the fee charged and the subsidy amount.
Therefore, the level of child care subsidy that a family can receive will be based on three factors. These are combined family income, activity test, and service type.
How can I save money on child care?
The option of working from home provides you with the flexibility of looking after your children, while still earning an income. Therefore, minimising your child care costs. Creating a schedule and allocating time for your family, helps with your work time being more productive when working from home.
A career as a Medical Transcriptionist not only allows you to pursue a career working from home, but it provides you with increased flexibility. If you are interested in working from home as a Medical Transcriptionist, TalentMed’s Diploma of Healthcare Documentation provides you with the essential skills and knowledge needed to get a job and excel in this increasingly popular field.
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