WIMMERA families earning less than $185,000 a year will be exempt from childcare subsidy caps from July.
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The federal government this week announced a new childcare package, with changes to childcare subsidy amounts and thresholds.
A single rebate – the Child Care Subsidy – will replace the Child Care Benefit and Child Care Rebate.
The current rebate is limited to $7163 for each child, but the changes will mean there is no cap for families earning less than $185,710.
The new subsidy will be paid directly to childcare services for eligible families.
An activity test will determine how many hours of subsidised care families are eligible for, based on combined family income, how much parents work, and the type of childcare a family uses.
Member for Mallee Andrew Broad said families across the Wimmera and Mallee would be better off under the new arrangements.
“The average wages in our patch aren’t at the level of some other areas, so essentially lowering the threshold for families earning $185,710 or less a year will be very welcome,” he said.
“Increasingly in country towns, we are seeing the need for childcare.
“We needed a more diversified workforce, and we need people to fill jobs.
“The perception that families in country areas have a man who goes to work and a woman who stays at home and looks after the kids is not true, so ensuring childcare works in regions like ours is important.
“We're trying to make it work and make it easier for families.”
Mr Broad said the package would provide financial support to families that needed it most.
He said removing the annual rebate cap and increasing subsidies would give families more opportunity to work with greater financial incentive.
“Childcare is a necessity for many of our families – we need to help out by delivering more support to educate their children and allow parents to work more hours to take more of their wage home each week,” he said.
Subsidies for families earning above $185,710 but below $350,000 will be capped at $10,000 a year for each child.
Mr Broad said people could visit www.education.gov.au/ChildCarePackage to estimate how much they would receive when the changes take effect on July 2.