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Home >  News & advice > March 2018 > New subsidy makes quality early learning affordable for more families

New subsidy makes quality early learning affordable for more families


New subsidy makes quality early learning affordable for more families

There’s strong research proving the positive impact that high quality early learning has on children, but in spite of a desire to give their children a head start in life, for many families child care has been financially out of reach.

All this could change however, with the introduction of the new Child Care Subsidy (which started on 2 July) offering more generous support for many families – especially those on low and middle incomes.

You can get an estimate of the subsidy you could receive by using our Child Care Subsidy estimator. You may not only find that child care is now more affordable, but some families who already use child care may be able to access an extra day for little or no extra cost.

Affordable early learning is great news for children
Quality early learning guided by skilled and qualified educators makes a huge difference to outcomes for children. And at a time when one in five children are starting school developmentally behind their peers, access to early learning has never been more important.

We’ve recently published an article which outlines the full benefits of early learning for children, the key points of which include:
  • Research shows all children benefit from early learning, regardless of their background or family income.
  • Children who do not attend preschool are 50% more likely to start school ‘developmentally vulnerable’, which means they’re starting school behind their peers – and children who start behind tend to stay behind.
  • Children who attend three or more years of quality early learning perform better in year four maths, science and reading.
  • The benefits of early learning are still evident in higher levels of literacy and numeracy understanding in children at ages 11 and 16.
Early learning is so important, and can have such a positive impact, because of how critical the first five years of a child’s life are. It’s when up to 90% of brain development takes place, and the nature of stimulation and nurturing children receive during this time makes a big difference.

In a nutshell – the first five years matter, a lot.

So is childcare really more affordable with the new Child Care Subsidy?
For most families, yes, but it’s important to note that there are several factors that determine how much subsidy families are entitled to:
  • Family income
  • The fortnightly hours of recognised activity undertaken
  • The fees charged by your chosen child care provider.
We’ve detailed the main things you need to know about the new Child Care Subsidy in this article, and we’ve also written about the impact that your household income can have on the subsidy you receive as well as the things that qualify for recognised activity.

Understanding the new Child Care Subsidy can be tricky at first. To help, we’ve created some case studies of typical family scenarios which show how the subsidy is calculated.

For families who received the former Child Care Benefit or Child Care Rebate (which were both be replaced the new Subsidy), it’s important to know that the transition to the new Subsidy isn’t automatic and there’s a few things you need to do first.

High quality early learning makes a big difference to children. Try our simple subsidy estimator to see if early learning is now within reach of your family budget.


Goodstart

Posted by Goodstart
23 March 2018



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