Langwarrin Community Centre

lifelong learning and community participation

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new Child Care Package starts on the 2nd of July, 2018 and the previous Child Care Rebate and Child Care Benefit has been replaced by a single Child Care Subsidy (CCS).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:

1.      Your combined family income – how much your family earns will determine the percentage of subsidy you are eligible for.
2.      Your activity level – parents must undertake a recognised activity to be eligible for the subsidy, and
3.      The type of child care service your family uses – the new subsidy will be calculated by an hourly rate cap, which vary
         depending on whether you use centre-based care, family day care or outside school hours care.
 
You can compare the hourly rate of our services to the government's CCS hourly rate cap at the link above - You will find all of our programs are well below the cap.
 
This is quite a good article to take a peek at as well https://www.guardian.edu.au/families/child-care-subsidy-ccs/  More information is better! 
 

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.

After the 2nd of July, families who have not completed the above will not have been transitioned to claim fee assistance through us under the new CCS system (CCSS). Full fees will apply for childcare until family obligations to receive the subsidy have been fulfilled.  Care that has been used whilst waiting for CCS to come through, will be charged at the full fee and if eligible, Centrelink will pay your fee assistance to you directly.  

Be aware that income limits for fee assistance eligibility have increased with the new CCS and many families who were previously not entitled, may be under the new system. Please contact us if we can provide any support to aid you with the process.  We welcome both your questions and feedback.


FEE INCREASES

As advised, our OSHC fees have increased from 2nd of July 2018  (There is no Occasional Care fee increase scheduled for 2nd July)
 

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 $0.32

We 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.
  
A family scenario with calculations follows after the new fee schedule, to give you an idea of how the increases might affect the family’s 'Gap/out of pocket amount' with the new CCS compared to the previous system.  CCS is a whole new ball game and many families will be better off over all, under the new system. 

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)
 
The information below may be required during your New assessment for CCS through Centrelink online via your Mygov account. 

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)


CALCULATIONS

How is Neil and Jenny’s subsidy calculated for the New Child Care Subsidy?

(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