TAKING THE PUZZLE OUT OF CHILDCARE
Australian families are facing an education blowout with daycare expenses taking a hefty chunk out of the weekly household budget.
Current research indicates paying more than $100 per day is standard across the country – with that figure rocketing past the $150 mark in the larger cities.
And there doesn’t appear to be any relief in sight, with Treasurer Scott Morrison announcing in the May budget that any childcare fee relief (for low and middle-income earners) would be delayed until next year.
It can be pretty daunting for parents of young children who are looking to re-enter the workforce. So, how does it all work?
Child Care Benefit: The Child Care Benefit is an income-tested payment that reduces the cost of your total childcare fees.
It is available to you if you are a parent, foster parent or grandparent with a child in your care who is attending childcare approved for the purposes of CCB by, or registered with, the government.
There are certain eligibility requirements you must meet to get CCB. Child Care Rebate: Once you are eligible for CCB, you may be eligible to also receive additional assistance through the Child Care Rebate.
The CCR covers 50% of your out-of-pocket costs up to the annual limit, regardless of your income. Currently, the CCR annual limit is $7500 per child per year. Be aware: The childcare system is changing from July 2018. As part of the changes, Child Care Benefit; Child Care Rebate; Jobs, Education and Training Child Care Fee Assistance; Grandparent Child Care Benefit; and the Special Child Care Benefit will cease at midnight on July 1, 2018. For more information about the new childcare fee assistance programs go to www.education.gov.au.