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Changes to the Child Care Benefit and Child Care Rebate– how will they affect you?

In General Budgeting by Phil McGilvrayLeave a Comment

If ridiculous house prices and huge mortgages weren’t enough child care costs have also sky rocketed in recent years. With many day care centres now charging upwards of $100/day it is no surprise that young parents get particularly twitchy when the government starts tinkering with the Child Care Subsidies. Over the past couple of weeks, I have had no fewer than a dozen discussions with coaching clients regarding what impact (if any) the proposed new Child Care Subsidies will have on their cash flow. With close to a million families receiving Child Care subsidies this is a big topic, so in this blog I thought I would provide an overview of the key components of the new subsidy system. But before we look at the new system let’s quickly review the Childcare subsidies that are currently in place – these will end as June 30, 2018. Current government childcare subsidies There are currently there are two Childcare Subsidies in place. 1. The Child Care Benefit (CCB) The Childcare Benefit is an income tested payment that can be made either as a lump sum to you or paid directly to your child care provider to offset the cost of child care. …