Families
The type of childcare chosen for a child is a big decision for each family. Those who seek to keep siblings together, want their child in a smaller group, need flexible hours otherwise unavailable in a Long Day Care setting or want to see part of the child’s early learning conducted in their home language will naturally choose Family Day Care.
Families enjoy a closer relationship with their child’s care giver and feel comfortable knowing their child’s regular routines are followed (as closely as possible) in the Family Day Care environment.
As with any form of childcare, it’s important to understand fees and what Child Care subsidy/s are available to you.
What does Family Day Care cost?
Educators operate their own individual Family Day Care business as registered members of a Family Day Care Service and are self-employed, therefore Educators’ fees (approved by the Service) vary.
Family Day Care Services may also charge a fee for enrolled children. The Commonwealth Government assists families with childcare costs through Child Care Subsidy (CCS).
For more information and to assess your eligibility, please contact the Family Assistance Line on 13 61 50 or visit the Department of Human Services (Centrelink).
Your combined family income is one of three key factors that determines how much Child Care Subsidy you will receive. Generally, as family income increases, the amount of Government subsidy decreases.
The other two factors determining your Child Care Subsidy is your fortnightly activity – such as work, study or volunteering, and the type of service your child attends.
Understanding the Child Care Subsidy can be confusing at times. So, it’s worthwhile getting a good understanding of how the subsidy is calculated and how it may impact your childcare payments.
Here’s a breakdown of the percentage of subsidy the Government will contribute to your childcare based on your combined family income:
- Families earning $66,958 pa or less will receive a subsidy of 85% of their childcare fees up to the rate cap of $10.90 per hour.
- For families earning between $66,958 to under $171,958 pa, the subsidy gradually tapers down from 85% to 50%, receiving 1% less for every $3000.
- Families earning $171,958 to under $251,248 pa will receive a subsidy 50% of their fees.
- For families earning $251,248 to under $341,248 pa, the subsidy gradually tapers down from 50% to 20%, receiving 1% less for every $3000.
- Families on $341,248 to under $351,248 pa will receive a subsidy of 20% of their fees.
- Families earning $351,248 pa or more will receive no subsidy.
The Government has a rate cap of $11.10 per hour (for Family Day Care fees) and the CCS percentage paid is based on this rate cap.
It is important to note that at no point does the Family Day Care Service influence or determine CCS percentages paid to families, Centrelink handles all matters related to CCS percentages. The Family Day Care Service however receives your CCS payment on your behalf and pays this direct to the Educator, reducing the Parent Gap Fee and your out of pocket childcare expenses.
Support for Disadvantaged & Vulnerable Families
Centrelink also provides additional support for disadvantaged and vulnerable families via the ACCS (Additional Child Care Subsidy), a top up payment for families who have:
- Children at risk of serious abuse or neglect,
- Grandparent primary carers on income support,
- Families experiencing temporary financial hardship,
– A subsidy equal to 100 per cent of the actual fee charged (up to 120 per cent of the hourly rate cap, up to 100 hours of assistance per fortnight) - Parents transitioning to work from income support,
– A subsidy equal to 95 per cent of the actual fee charged (up to 95 per cent of the hourly rate cap), hours of assistance determined by the activity test.