Government Funding
The Australian Government is committed to ensuring that Australian families can access affordable, flexible and high-quality early childhood education and care. The Government provides a number of subsidies and programs to help with the cost of child care, with the Child Care Subsidy being the main type of assistance that most families will use.
Government funded childcare was established with the recognition that both parents in many Australian families need to work, but many have found the system can sometimes be a little difficult to navigate. At Clovel Childcare, we like to provide as much assistance to our parents as possible to make the process as simple as it can be when you need to apply for government childcare funding. Our experienced team has years of experience navigating the Child Care Subsidy application process and is more than willing to provide assistance wherever needed.
To be eligible for childcare government funding, you will need to answer a series of questions and prove your combined family income. Once the level of support is determined by the government, based on your personal financial situation, the correct amount will be released to the childcare provider you choose. At Clovel, we can help you through the application process to make it as simple as possible to access government funded childcare.
Once approved, your Child Care Subsidy will be paid directly to child care providers to pass on to families as a fee reduction so that their fees are reduced at the time they use child care. Families will pay their provider the difference between their subsidy and the fees charged for their childcare services. Families will not be able to elect to receive their subsidy as a lump sum at the end of the financial year. Families will need to make a claim for Child Care Subsidy when (or before) each child starts attending care.
Any Child Care Subsidy owed to families following the end of year reconciliation process will be paid directly to families as a lump sum. If a family has been overpaid Child Care Subsidy during the year, the family may have to repay some Child Care Subsidy (a debt). Once approved, the government funding for your children attending childcare becomes an administration process, with all monies changing hands between the government and the childcare centre of your choosing.
Government funding for childcare centres is based on a series of eligibility requirements that need to be met by the child’s parents or guardians. To be eligible for the Child Care Subsidy, the following requirements must be met.
To be eligible for childcare government funding, child care must be provided by an approved provider in Australia and not be part of a compulsory education program, for example, school.
Approved government childcare funding is available throughout your child’s early learning, before attending primary school. From an early age, this funding gives you affordable access to our baby programs and continues throughout your child’s preschool years, meaning that you can enrol them in literacy and numeracy early learning programs with the help of the government, giving them the best start in their schooling lives.
At Clovel, we are here to help you and your children maximise your government funding for childcare so that your young ones have every opportunity to enhance their potential from an early age. From healthy eating to physical activity that will benefit your child’s growth and development every step of the way, our Clovel team is here to support your children in receiving the best early education possible.
With many years of experience in providing award-winning childcare, the Clovel administration and management team are experts in managing government funding so that you can maximise the benefits your child will receive.
Once your child is enrolled, you can easily communicate with us through our KindyHub with any questions, whether about your funding or your child’s progress in our programs.
Any new changes relating to government funding for childcare centres will be announced on our blog so you can remain up to date with the latest information. The best tip to utilise your government funding effectively for your child’s early learning years is to stay as in touch as possible with any changes that are made within the system, so you and your child never miss out.
When it comes to childcare, government funding is something that many families need to secure so they can meet the cost of living requirements with both parents being available to earn. Government funded childcare is just one of the ways in which the Australian Government supports young families around the country. It is important for you to remain current on the assistance that the government can offer you at both a state and federal level so that your child never misses out on crucial elements of their early learning journey.
Accessibility
With government funding for childcare centres being readily available at Clovel, you can be sure your child will have access to some of the best early learning in the country. Aside from simply having the financial support that you need for your child to attend preschool to aid in their growth and development, this kind of funding allows new parents the time they need for important self-care and to meet the requirements of re-entering the workforce.
Contact Clovel Childcare today to discuss how you can apply for government childcare funding and allow our expert team to assist with guiding you through the process.
In short, parents should be aware of any changes that are made to the government funding for childcare centres. By remaining up to date on new rules and evaluation systems that are put into place within the government, you give yourself the best opportunity to maximise funding that will actively support your child’s early education.
At Clovel, we believe in keeping our parents updated with the latest information on childcare government funding. We maintain a blog that is filled with great ideas to continue your child’s learning at home as well as important information that relates to any changes in government funding.
Government funding for childcare varies from family to family. The level of subsidy a family receives will depend on three factors:
The table below outlines combined family income and relevant rate of Child Care Subsidy to which families will be entitled.
| Combined family income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly rate cap) |
|---|---|
|
$0 to $80,000 |
90% |
|
More than $80,000 to below $530,000 |
Between 90% and 0%* |
|
$530,000 or more |
0% |
These amounts are correct from 10 July 2023.
*The percentage goes down by 1% for every $5,000 of income your family earns above $80,000
Read more about changes if you get family payments.
Families can use the Department of Human Services Payment and Service Finder to estimate how much Child Care Subsidy they may be entitled to by entering their details.
The number of hours of subsidised child care to which a family will be entitled will depend on how much time parents spend undertaking recognised activities, for example work, training, volunteering, study or if it’s the year before your child starts Primary School.
The Child Care Subsidy activity test takes into account both parents’ (if applicable) activities, however, the maximum hours a family will receive will be based on the person with the lowest level of activity. A broad range of activities will meet the activity test requirements.
For people with irregular work hours, such as casual employment, an estimate can be used based on the highest number of hours they expect to work in any one fortnight over a three-month period.
There is a four-step activity test to calculate how many hours to which a family will be entitled.
|
Activity level each fortnight |
Hours of subsidised care each fortnight |
|---|---|
|
Less than 8 hours |
0 hours if you earn above $80,000 24 hours if you earn $80,000 or below |
|
More than 8 to 16 hours |
36 hours** |
|
More than 16 to 48 hours |
72 hours |
|
More than 48 hours |
100 hours |
**If it’s the year before your child starts primary school you’ll have access to 36 hours of subsidised care per fortnight
Government funding for childcare helps Australian families in multiple ways. The first and foremost benefit of this type of funding is allowing affordable access to early learning for young children but there are many ways in which this support also helps the entire family unit. Allowing both parents to return to work while feeling confident that their child is being taken care of by a professional institution such as Clovel Childcare is something that can be irreplaceable for new parents.
With the additional ability to earn, government funding for childcare helps families to get ahead financially in their child’s early years. This also helps in a social aspect where new parents, especially new mothers, can rejoin the world in a social capacity supporting positive post-natal mental health.
Child Care Subsidy will be paid directly to child care providers to pass on to families as a fee reduction so that their fees are reduced at the time they use child care. Families will pay their provider the difference between their subsidy and the fees charged. Families will not be able to elect to receive their subsidy as a lump sum at the end of the financial year. Families will need to make a claim for Child Care Subsidy when (or before) each child starts attending care.
Any Child Care Subsidy owed to families following the end of year reconciliation process will be paid directly to families as a lump sum. If a family has been overpaid Child Care Subsidy during the year the family may have to repay some Child Care Subsidy (a debt).
If a family earns $530,000* or more per year, they will not be entitled to any Child Care Subsidy. However, high-income families who are not certain of their combined family income for the year ahead, are encouraged to make a claim for Child Care Subsidy. This maintains their eligibility for Child Care Subsidy throughout the year and will ensure they receive entitlement if their actual income at the end of the financial year ends up being below $530,000*.
*These amounts are correct from 10 July 2023.
Child Care Subsidy withholding is designed to help families avoid or minimise debts at reconciliation, which could occur due to changes in circumstances throughout the year (for example, changes to family incomes or activities).
The withholding amount is automatically set up at 5%, however you can vary this amount to suit your circumstances. You can do this twice a year using your Centrelink online account through myGov.
Withholding is important as it helps protect families from possible debts. If a family underestimates their family income, they may end up with an overpayment which they will need to pay back to the Government. The amount withheld will be used to reduce the debt to the Government.
If a family overestimates their family income and doesn’t get enough subsidy, any outstanding amount will be paid directly to the family by the Government, this includes the money withheld.
The Additional Child Care Subsidy is a top-up payment in addition to the Child Care Subsidy which will provide targeted additional fee assistance to families and children who need extra support.
The Additional Child Care Subsidy has four elements:
Choosing your child’s childcare and early learning centre is one of the biggest decisions you will ever have to make for your child. If you have more questions for us or would like to book a tour of one of our centres, please fill out our form and we’ll be in touch!
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