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From today, about 1.2 million Australian families are in line for a childcare rebate boost.
Here's what the new federal government changes could mean for you.
What is changing from July 10?
The federal government is implementing its new Child Care Subsidy (CCS) regime.
It will subsidise a larger percentage of most families' childcare fees.
More families will also be able to qualify for the scheme.
Before the change, families earning less than $80,000 were eligible to have 85 per cent of their childcare fees covered.
Now that's increased to 90 per cent.
The more a family earns, the smaller the subsidy gets.
The income cap for eligibility has been increased from $356,756 to $530,000.
That will mean more higher-income families will be eligible.
Caregivers don't need to do anything to get the increased rate.
Aboriginal and Torres Strait Islander children will get at least 36 hours of care subsidised each fortnight regardless of income or activity levels.
How much is the Child Care Subsidy?
It changes depending on a family's income.
The following table is a good guide:
Head to the federal government's Child Care Subsidy calculator to find out what your family might pay for early childhood education care.
How does it work?
The subsidy is directly paid to the childcare provider in order to reduce the fees caregivers pay.
In order to apply you need a MyGov account which is linked to Centrelink.
Services Australia has a step-by-step guide on eligibility and how to claim CSS.
Who is eligible for Child Care Subsidy?
Services Australia says you must:
- Care for a child 13 years or younger who's not attending secondary school, unless an exemption applies
- Use an approved childcare service
- Be responsible for paying the childcare fees
- Meet residency and immunisation requirements
Head to the Services Australia website for more details and exemptions.
Is Child Care Subsidy based on gross or net income?
CCS is based on taxable income, which is gross income.
This is the income you have to pay tax on, minus allowable deductions.
Income that caregivers get under tax-free thresholds also count as taxable income.