Here is a brief overview of the Child Care Subsidy (CCS) that is to be released from July 2018:
- Families earning less than $65,710 per annum will have 85% of a maximum hourly rate of $11.55 subsidised. That is, if the hourly fee is less than $11.55, then 85% of the fee will be subsidised by the government. For any fee greater than $11.55, the government will subsidise $9.8175 (85% of $11.55).
- The maximum hourly rate to be subsidised is set by the government and will be the following for children below school age:
- LDC: $11.55
- FDC: $10.7
- OSHC: $11.55
- The maximum hourly rate to be subsidised is set by the government and will be the following for school-aged children:
- LDC: $10.10
- FDC: $10.70
- OSHC: $10.10
- When the family income is greater than $65,710 per annum their subsidies will decrease to 20% of the maximum hourly rate when earning $340,000 per annum.
- Family incomes greater than $185,710 will have their annual subsidy capped at $10,000/child.
- CCS entitlements will be granted following a three step activity test:
- 8-16 hours per fortnight, maximum 24 hours of subsidy per fortnight;
- 16-48 hours per fortnight, maximum 36 hours of subsidy per fortnight;
- More than 48 hours per fortnight, maximum 100 hours of subsidy per fortnight.
- Additional subsidies to CSS will be afforded under the Child Care Safety Net.
Services will have new requirements and obligations:
- The new CCS will remove the requirement for hours of operation per day or days per week.
- Instead, services will be required to operate for a minimum 48 weeks per year OR 7 weeks per year if an outside school hours care service.
- There will be new obligations on services to comply with Family Assistance Law which includes but isn't limited to:
- The Department of Education and Training will have the ability to reassess a service approval at any time.
- Providers will be required to report their educators 'Working with Children Check' details.
- There will be a 28-day limit for backdating children’s attendance records.
There will be a new Integrated Child Care IT System that will change the way services and families can communicate with Centrelink. Some of the key changes are:
- For families to interact with Government via CCITS.
- To access public info on CCS and their eligibility for assistance.
- To find provider locations as well as vacancy information.
Provider Access Point (PAP)
- For services that want to access information or apply for approval under Family Assistance Law and engage with Centrelink directly without a 3rd party Child Care Management System software.
- The PAP will not provide the additional functions of a 2rd party CCMS software.
- The PAP is likely to be used by only a small number of child care operators.
Provider Digital Access (PRODA)
- PRODA is an online digital authentication system used to securely access online services.
- To access services using PRODA services need to register as an individual to get your own account.
- Services can register for PRODA by visiting: https://proda.humanservices.gov.au
Further information can be found on ourxplor.com/child-care-subsidy