To be eligible to receive Child Care Subsidy for a child you must meet some basic requirements These include:

• The age of the child (must be 13 or under and not attending secondary school)
• The child meeting immunisation requirements
• The individual, or their partner, meets the residency requirements.
  
  

In addition, to be eligible for Child Care Subsidy the individual must be liable to pay for the care provided, the care must be delivered in Australia by an approved child care provider, and not be part of a compulsory education program.

How does it work?

There are three factors that will determine a family’s level of Child Care Subsidy. These are:

• Combined Family Income
• Activity Test – the activity level of both parents
• Service Type – type of child care service
  
  

The Child Care Subsidy will be paid directly to providers to be passed on to families as a fee reduction. Families will make a co-contribution to their child care fees and pay to the provider the difference between the fee charged and the subsidy amount.

The New Child Care Package will also provide targeted additional fee assistance for vulnerable families through the Child Care Safety Net.