The New Australian Childcare Package

In a world where childcare is one of the most important investments for our children and their future, we find that this can place us out of pocket quite quickly due to the amount of time required for the kids to grow in early education. The Australian government has introduced a new childcare package which has been created to help families with lower and middle income to receive a higher subsidy than they do now. This will enable families and their children to easily access childcare resources while also being able to manage their finances more effectively from July 2018.

What changes are being made?

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From 2nd July 2018, the childcare benefit and childcare rebate will be replaced with a childcare subsidy which will make childcare more affordable for families across Australia. With this change being put in place, families earning less than $185,710 will have no cap on the amount of childcare they can claim. Moreover; families who earn between $185,710 and $350,000 will have an increase in their current cap of around $7,613 to $10,000 per child per year.

Am I eligible?

To be eligible for the new childcare package, you/your children must meet the following requirements:

1) Children must be 13 or under and not in secondary school.

2) The child must meet immunisation requirements.

3) The individual(s) must meet residency requirements.

How will it work?

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Families will earn a subsidy based on the following:

1) Combined family income

2) Parental activity level: The higher the level of activity by parents, the more hours of subsidised care a family is eligible for (up to 100 hours per fortnight). The recognised list of activities can be found on the education government website here.

3) Type of childcare service in use:

– Centre-based care — $11.55^ per hour

– Family day care — $10.70^ per hour

– Outside school hours care — $10.10^ per hour.

The childcare package to be implemented will also include a $1.2 billion Safety Net to assist the vulnerable and disadvantaged children & families. This Safety Net will ensure all children are equally given the opportunity to attend to early learning and childcare. To read more about the safety net, you can click here.

How much will my family receive in benefits?

To calculate how much your family will receive in benefits, it is a good idea to make use of the calculator on the website found here.

Disclaimer: For more information, please go to — all information here has been based off the data presented by the education government website.

Found this article helpful? Feel free to read more at our website! We have prepared an article on tips for choosing the right preschool or childcare for your children.

Our Childcare Centres:

If you are looking for quality childcare and require more information about the new childcare packages, you are welcome to contact our directors at the centres below.

Giggles ELC — childcare in Bexley NSW

The Little Cottage — childcare in Carlton NSW

Wyralla Road Kindergarten — childcare in Miranda NSW

Happy Feet Childcare —childcare in Carlton NSW



Creative Commons: Pixabay (Pexels) – main image

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