To give you an idea of how the Child Care Subsidy may impact your family, take a look at some case studies on different family scenarios.
The scenarios have been calculated on the centre-based care rate cap of $11.98 per hour. Calculations will be different if you are enrolled in outside of school hours care or family day care.
The estimator also allows you to see how a change in circumstances, for example working an extra day, volunteering, or a change to your family income could affect your payments.
Jimmy is working full-time and Marla is spending 8 hours a week studying. Their daughter Gabrielle is attending long day care one day a week, where the daily rate is $100 a day for up to 10 hours of care. The total combined family income is $68,000 pa.
Based on the combined family income and activity, the family is entitled to a subsidy of 85% of the child care fee for a maximum of 36 hours per fortnight.
The couple will be eligible for a subsidy of $170 a fortnight.
The Government will withhold 5% of their fortnightly Child Care Subsidy entitlement to help ensure that they do not incur a debt. This would mean the couple would receive $161.50 of subsidy a fortnight, rather than $170. Any amount owing will be paid to families as part of the reconciliation process when their tax return is assessed at the end of the financial year.
How is Jimmy and Marla’s subsidy calculated?
$100 per day x 2 days of care per fortnight = $200 per fortnight
85% x $200 = $170
5% x $170 = $8.5 (withheld by Government)
$170 - $8.5 = $161.50 subsidy paid per fortnight
After family submits tax return and it is reconciled, if no other debt is owing to the Government they will reimburse the amount withheld throughout the year 26 weeks x $8.5 = $221.
Dominic and Mila have a combined family income of $100,000 pa. Mila is working full time and Dominic is working part-time three days a week (42 hours a fortnight). Based on the combined family income and activity, the family is entitled to a subsidy of approx. 74.4% of the child care fee for a maximum of 72 hours per fortnight.
They have two children in long child care three days a week, where the daily rate is $100 a day for up to 11 hours of care.
The couple will be eligible for subsidy of $892.80 a fortnight, with no annual cap.
With the 5% Government withholding, the couple would receive $848.16 of subsidy a fortnight, rather than $892.80. Any amount owing will be paid to families as part of the reconciliation process when their tax return is assessed at the end of the financial year.
How is Dominic and Mila’s subsidy calculated?
$100 per day x 6 days of care per fortnight x 2 children = $1200 per fortnight
74.4% x $1200 = $892.80
5% x $892.8 = $44.64 (withheld by Government)
$892.8 -$44.64 = $848.16 subsidy paid per fortnight
After family submits tax return and it is reconciled, if no other debt is owing to the Government they will reimburse the amount withheld throughout the year 26 weeks x $44.64 = $1160.64.
Claire is a single mother working full-time and has a yearly income of $210,000 pa. She has a son called Oliver, age 3. Oliver attends long day care four days a week, where the daily rate is $90 a day for a 12-hour session.
Based on Claire’s yearly income and activity, Claire is entitled to a subsidy of 50% of the child care fee for a maximum of 100 hours per fortnight.
Claire will be eligible for subsidy of $360 a fortnight, up to an annual cap of $10,373.
With the 5% Government withholding, Claire would receive $342 of subsidy a fortnight, rather than $360. Any amount owing will be paid to families as part of the reconciliation process when their tax return is assessed at the end of the financial year.
How is Claire’s subsidy calculated?
$90 per day x 8 days of care per fortnight = $720 per fortnight
50% x $720 = $360
5% x $360= $18 (withheld by Government)
$360 - $18 = $342 subsidy paid per fortnight
After family submits tax return and it is reconciled, if no other debt is owing to the Government they will reimburse the amount withheld throughout the year 26 weeks x $18 = $468.
Anna is working full-time, while Stephen is spending 8 hours in recognised activity per week. They have a 3-year-old child in long day care three days a week, where the daily rate is $90 a day for up to 11 hours of care. The family income is $60,000 total.
Based on the combined family income and activity, the family is entitled to a subsidy of 85% of the child care fee for a maximum of 36 hours per fortnight, which doesn’t cover all the days they attend child care.
However, Stephen spends one hour a week travelling between the child care service and his recognised activity – which is also included under the Child Care Subsidy activity test. This would bump the family up into the next activity step and the family would be eligible to receive 72 hours of subsided care per fortnight, instead of 36 hours.
This would mean the family would be covered for all three days of care per week and they would be eligible for subsidy of $436.05 a fortnight.
How is Anna and Stephen’s subsidy calculated?
$90 per day x 6 days of care per fortnight = $540 per fortnight
85% x $540 = $459
5% x $459= $22.95 (withheld by Government)
$459 - $22.95 = $436.05 subsidy paid per fortnight
After family submits tax return and it is reconciled, if no other debt is owing to the Government they will reimburse the amount withheld throughout the year 26 weeks x $22.95 = $596.70.
The scenarios have been calculated on the centre-based care rate cap of $11.98 per hour. Calculations will be different if you are enrolled in outside of school hours care or family day care.
You can try our simple subsidy estimator to get an idea of how much Child Care Subsidy you could expect to receive – click here to use the estimator.
The estimator also allows you to see how a change in circumstances, for example working an extra day, volunteering, or a change to your family income could affect your payments.
Case study 1: Family income $68k, full time work + part-time study
Jimmy is working full-time and Marla is spending 8 hours a week studying. Their daughter Gabrielle is attending long day care one day a week, where the daily rate is $100 a day for up to 10 hours of care. The total combined family income is $68,000 pa.Based on the combined family income and activity, the family is entitled to a subsidy of 85% of the child care fee for a maximum of 36 hours per fortnight.
The couple will be eligible for a subsidy of $170 a fortnight.
The Government will withhold 5% of their fortnightly Child Care Subsidy entitlement to help ensure that they do not incur a debt. This would mean the couple would receive $161.50 of subsidy a fortnight, rather than $170. Any amount owing will be paid to families as part of the reconciliation process when their tax return is assessed at the end of the financial year.
How is Jimmy and Marla’s subsidy calculated?
$100 per day x 2 days of care per fortnight = $200 per fortnight
85% x $200 = $170
5% x $170 = $8.5 (withheld by Government)
$170 - $8.5 = $161.50 subsidy paid per fortnight
After family submits tax return and it is reconciled, if no other debt is owing to the Government they will reimburse the amount withheld throughout the year 26 weeks x $8.5 = $221.
Case study 2: Family income $100k, full time work + part-time work
Dominic and Mila have a combined family income of $100,000 pa. Mila is working full time and Dominic is working part-time three days a week (42 hours a fortnight). Based on the combined family income and activity, the family is entitled to a subsidy of approx. 74.4% of the child care fee for a maximum of 72 hours per fortnight. They have two children in long child care three days a week, where the daily rate is $100 a day for up to 11 hours of care.
The couple will be eligible for subsidy of $892.80 a fortnight, with no annual cap.
With the 5% Government withholding, the couple would receive $848.16 of subsidy a fortnight, rather than $892.80. Any amount owing will be paid to families as part of the reconciliation process when their tax return is assessed at the end of the financial year.
How is Dominic and Mila’s subsidy calculated?
$100 per day x 6 days of care per fortnight x 2 children = $1200 per fortnight
74.4% x $1200 = $892.80
5% x $892.8 = $44.64 (withheld by Government)
$892.8 -$44.64 = $848.16 subsidy paid per fortnight
After family submits tax return and it is reconciled, if no other debt is owing to the Government they will reimburse the amount withheld throughout the year 26 weeks x $44.64 = $1160.64.
Case Study 3: Family income $210k, single parent in full time work
Claire is a single mother working full-time and has a yearly income of $210,000 pa. She has a son called Oliver, age 3. Oliver attends long day care four days a week, where the daily rate is $90 a day for a 12-hour session.Based on Claire’s yearly income and activity, Claire is entitled to a subsidy of 50% of the child care fee for a maximum of 100 hours per fortnight.
Claire will be eligible for subsidy of $360 a fortnight, up to an annual cap of $10,373.
With the 5% Government withholding, Claire would receive $342 of subsidy a fortnight, rather than $360. Any amount owing will be paid to families as part of the reconciliation process when their tax return is assessed at the end of the financial year.
How is Claire’s subsidy calculated?
$90 per day x 8 days of care per fortnight = $720 per fortnight
50% x $720 = $360
5% x $360= $18 (withheld by Government)
$360 - $18 = $342 subsidy paid per fortnight
After family submits tax return and it is reconciled, if no other debt is owing to the Government they will reimburse the amount withheld throughout the year 26 weeks x $18 = $468.
Case Study 4: Family income $60k, full time work + recognised activity
Anna is working full-time, while Stephen is spending 8 hours in recognised activity per week. They have a 3-year-old child in long day care three days a week, where the daily rate is $90 a day for up to 11 hours of care. The family income is $60,000 total.Based on the combined family income and activity, the family is entitled to a subsidy of 85% of the child care fee for a maximum of 36 hours per fortnight, which doesn’t cover all the days they attend child care.
However, Stephen spends one hour a week travelling between the child care service and his recognised activity – which is also included under the Child Care Subsidy activity test. This would bump the family up into the next activity step and the family would be eligible to receive 72 hours of subsided care per fortnight, instead of 36 hours.
This would mean the family would be covered for all three days of care per week and they would be eligible for subsidy of $436.05 a fortnight.
How is Anna and Stephen’s subsidy calculated?
$90 per day x 6 days of care per fortnight = $540 per fortnight
85% x $540 = $459
5% x $459= $22.95 (withheld by Government)
$459 - $22.95 = $436.05 subsidy paid per fortnight
After family submits tax return and it is reconciled, if no other debt is owing to the Government they will reimburse the amount withheld throughout the year 26 weeks x $22.95 = $596.70.