Langwarrin Community Centre Inc. Incorporation Registration No.: A0027420f
NEW CHILD CARE SUBSIDY (CCS)
Hi everyone, as many of you will know the new Child Care Package starts on the 2nd of July, 2018 and the previous Child Care Rebate and Child Care Benefit has been replaced by a single Child Care Subsidy (CCS).
The new subsidy will be paid directly to child care providers and parents will only be required to pay the difference. Please click on the links below to find out more about the three key factors that will be used to determine how much Child Care Subsidy families may receive:
depending on whether you use centre-based care, family day care or outside school hours care.
If you have not already done so, please action the following now: All of these steps
1) Create a MyGov account
2) In your MyGov account, link to Centrelink
3) In your Centrlink account – Complete your new assessment for the new child care subsidy
4) Confirm your child's Enrolment at our Service/s - This is the final step and until it's done your CCS entitlements will NOT flow through
to our CCS software and you will not receive reduced fees.
***Let us know if you are having trouble finding this step in Centrelink - After you log in to Cenrelink via MyGov, it's usally found if you:
Go to: Menu > Child Care Subsidy > Enrolments > Not Confirmed/Confirmed.
Select the service or services that apply, Agree and Confirm.
CHILD CARE SUBSIDY (CCS) '8 WEEK RULE' - RECEIVING THE SUBSIDY WHEN YOUR CHILD IS ABSENT ON A BOOKED DAY OF CARE
- An Enrolment for Subsidy purposes means 'An enrolment online in Centrelink' that the parent is required to confirm for a particular childcare service enable child care subsidy to be applied to sessions of care that reduce the parent's contribution . (Not to be confused with the Child Care Service's online enrolment form.)
* Child Care Subsidy is not payable for absences submitted before a child has physically attended at a service, or after a child’s final physical day of attendance at a service.
* An enrolment is taken to have ceased for Child Care Subsidy purposes if the child does not attend a session of care for eight continuous weeks.
What does the above mean to families?
Please be aware that booked sessions of care are charged whether your child attends or not - Absences incur the full fee if Child Care Cubsidy is withdrawn/retrieved or not paid for a session of care.
Families may have the childcare subsidy retrieved by Centrelink if any of the following occur:
* Absent on a First physical day of care -
> This can occur if absent on the actual 'first day' booked at the service
or > Or any subsequent 'first day', when recommencing care after Centrelink have ceased the online enrolment due to non attendance (8 week rule)
* Absence on a Last physical day of care -
> This can occur if absent on the 'last day' booked at the service where the child will not be returning
or > Or any subsequent 'Last day'prior to Centrelink ceasing the online enrolment due to non attendance (8 week rule)
CASUAL USERS AND SCHOOL HOLIDAY PROGRAM Families who do not use routine/regular care OR Families who use St Jude's After school care only during the school term, are at risk of being affected by the 8 week rule because it is 'Service/Site specific. Regular care used at St Jude's will not provide continuity of your 'online subsidy enrolment' for care provided at the Community Centre.
*** Please check that your online subsidy enrolment has not in 'Ceased' by logging into your Centrelink account and checking your child care subsidy enrolment status, prior to booking casual care after a break.
In the past 5 years there have only been three fee increases for our OSHC services, with the average increase per session/per year being: VACATION CARE- $1.24 ASC - $0.42 and BSC $0.32We have always endeavoured to keep our child care fees comparatively low for our families. Our rates will continue to be competative and more often than not, will still be lower than many other providers - even with the fee increases below.
In light of considerable increases in costs to manage the new CCSS as previously advised, please see the new fee structure below - both total session fee and hourly rates are noted: (Care is charged by the session)
Hourly rates from 2nd July:
VACATION CARE: $4.52 p/hour - 11.5 hour session previously $3.84 p/hour
AFTER SCHOOL CARE: $7.33 p/hour - 3 hour session previously $6.07 p/hour
BEFORE SCHOOL CARE: $7.11 p/hour - 2.25 hour session previously $5.91 p/hour
OCCASIONAL CARE: $7.50 p/hour - 5 hour session no change $7.50 p/hour
Session rates from 2nd July:
VACATION CARE: $52.00 previously $44.20
AFTER SCHOOL CARE: $22.00 previously $18.20
BEFORE SCHOOL CARE: $16.00 previously $13.30
OCCASIONAL CARE: $37.50 no change $37.50
Scenario 1: Family income $45k, part-time work + part-time study
Neil is working part-time 60 hours per fortnight and Jenny is spending 16 hours per fortnight studying. Their daughter Lily is attending after school care (ASC) two days per fortnight, where the daily rate is $18.20 a day for up to 3 hours of care (cost is $36.40 per fortnight). The total combined family income is $45,000 pa. (Under the previous system the family has 100% CCB and has CCR)
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 (p/f).
The couple will be eligible for a Subsidy of $30.94 p/f. Under the previous system, the family received $30.18, making the family 76¢ better off per fortnight under the new Child Care Subsidy. Sounds ok right?
** We have not yet applied the government’s 5% withholding amount - All families receiving CCS will have 5% of their subsidy withheld by the government.
Due to this, families may have to pay a higher upfront fee but they will receive the total withheld amount back when their Centrelink account is balanced by the government at the end of the financial year when tax returns are lodged, provided they do not have a debt.
What it looks like for this family:
Previous Gap $6.22 per fortnight (p/f) (out of pocket expense) ASC fee set at $18.20
New Gap $7.01 p/f from July 2nd under the CCS ASC same fee $18.20
**The 79¢ Gap increase here is due to the 5% withholding amount alone. The family has a higher upfront fee, without any fee increase being applied.
Comparison - fee increase for ASC from $18.20 to $22 from 2nd July
Gap p/f pre CCS - before 2nd July $6.22 $18.20
Gap p/f CCS - fee unchanged $7.01 $18.20 - $5.46 Gap once 5% w/holding refunded to family
Gap p/f CCS - with New fee $8.47 $22.00 - $6.60 Gap once 5% w/holding refunded to family
Bottom line: While this family’s up front cost per session for ASC will increase under CCS, after the government’s 5% withholding amount is refunded to them at the end of the financial year, the overall increase for this family from July 2nd under CCS is just 38¢ p/f (19¢ per ASC session/day)
(I.e. $6.60 - $6.22 ÷ 2)
(All calculations will be applied per fortnight under the new system – Week one starts 2nd July, 2018)
Example with Current ASC fee $18.20
$18.20 per session x 2 sessions of care per fortnight = $36.40 p/f
85% x $36.40 = $30.94
5% x $30.94 = $1.55 (withheld by Government)
$30.94 - $1.55 = $29.39 subsidy paid per fortnight
Fee $36.40 - $29.39 subsidy = $7.01 Gap p/f
Example with new ASC fee $22.00 from 2nd July 2018
$22 per session x 2 sessions of care per fortnight = $44 per fortnight
85% x $44 = $37.40
5% x $37.40 = $1.87 (withheld by Government)
$37.40 - $1.87 = $35.53 subsidy paid per fortnight
Fee $44 - $35.53 = $8.47 Gap p/f