•paid work – including leave, such as maternity leave
•study and training
•unpaid work in family business
•looking for work
•other activities on a case-by-case basis.
Activity Test Example – hours of activity
• Parent one, works 76 hours per fortnight – Step 3 of the Activity Level
• Parent two, works 40 hours per fortnight – Step 2 of the Activity Level
As parent two has the lower activity, the family is eligible for 72 hours per fortnight of subsidised child care.
3. Service type: Hourly Fee Cap for Long Day Care
Fee subsidies based on a set hourly rate ($11,55 for centre-based day care)
Support for disadvantaged and vulnerable families
The package also provides targeted additional fee assistance through a new Child Care Safety Net.
The Additional Child Care Subsidy (July 2018) – a top up payment for families who are genuinely disadvantaged.
Refer to the new child care package Child Care Safety Net factsheet for additional information.
Note: the government will be holding back 5% of CCS paid to families until reconciliation at the end of every financial year. This balance will be paid back to families in their tax return if they are eligible.
Transitioning to the new system
Under the new system, existing child care payments will be replaced with the Child Care Subsidy and Additional Child Care Subsidy.
Centrelink will contact families directly to provide information on current entitlements and how they may change under new arrangements. This may include asking families for additional information, to ensure that they move onto the new payment system smoothly.
For more information on the new child care package, visit www.education.gov.au/childcare
By Helen Korch, Enquiries Manager