Rebate to be replaced
THE current child care rebate system will be scrapped as of July 2 2018.
The current rebate covers 50% of child care fees to an annual cap of $7500.
It will be replaced by a means-tested child care benefit.
The Federal Government managed to pass its $1.6 billion dollar package through the Upper House, which will cut subsidies for households earning more than $350,000.
The child care package will allow a family earning less than $65,000 to have 85% of their childcare bills paid for by government assistance.
At the moment families get 24 hours of subsidised care (regardless of working situations) but this will be cut to just 12 hours and will only be available for those earning less than $65,710 a year.
In order to pass the new test, parents will have to work, study or volunteer at least eight hours a fortnight, and if they can’t do that, they will still receive 12 hours of child care.
TALKING POINT: Child care changes are coming.