While many parents understand the idea behind childcare subsidies, the child care subsidy calculator is another thing. Yet, understanding how the child care subsidy calculator is vital to launch a successful claim.
A basic understanding of the workings of the child care subsidy program can be a literal eye-opener for many parents. Knowing more about the subsidy makes the application pretty straightforward.
A Brief Explanation of the Child Care Subsidy
The Federal Government of Australia provides the largest kind of child care financial assistance known as the CCS or the Child Care Subsidy. The primary goal of the CCS is to reduce the costs of childcare for children enrolled in long daycare.
Out-of-school care hour costs such as in-home care, family daycare, and other childcare services are helped by the CCS. The program was officially launched in July 2018 and still going strong.
The Reasons for the Government in providing Child Care Subsidies
The childcare assistance provided by the Government to cut costs is due to several reasons, including:
- Increase the level of education of young children for healthy development
- Decrease the costs of childcare to encourage parents to achieve stable employment
The numerous child care subsidies in the past years used by the Government have been simplified in one program today; the CSC.
CSC Eligibility Requirements
Before anything else, families planning to apply for a CSC claim must first assess their eligibility, including:
- Have a permanent visa
- Have a recognised type of temporary visa
- Have a Special Category Visa
- Citizen of Australia
- Have been responsible for paying the fees of childcare
- Show at least 14% monthly care for the child
The child must also have the following requirements:
- Show updated immunisations from the required immunisation programs of the Department of Health
- Under 13 years old and not attending any secondary school
Understanding the Child Care Subsidy Calculator
Three factors determine the amount of child care subsidy, to include:
The amount of activities a family is involved in
The “activities” is a broad term applied to the activity hours the family is constantly involved in. This includes volunteering, parental leave, studying, job seeking, and working. Questions about the number of hours of eligible activities will be asked by the child care subsidy calculator.
The kind of childcare facility attended by the child
The “maximum hour rate” that a family can claim from the CCS is determined by the kind of childcare arrangement currently attended by the child. If the “maximum rate hour” of the CCS is more than the amount of the current childcare provider, then the hourly rate of the said provider will be used.
The overall family income
The overall family income is another way for the CCS calculator to determine the annual cap on the subsidy entitlement of the family. For instance, an annual income of $186,958 or less does not provide an annual cap limit from the CCS. On the other hand, no funding will be provided by the CCS for families with an annual income of $351,248 or more.
The annual cap provided by the CCS is $10,190 for every child with families showing an annual income of $186,958 or more but less than $351,248.
The CSC calculator is simple and easy to use if you want to know how much child care subsidy you will receive. All it needs is for families to provide an estimated annual income.