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Child Care Professionals in Perth Help Parents Sort Out Changes to Child Care Subsidies

Announcement posted by Cuddles Childcare Centre 03 May 2017

Director of child care centres in Perth reveals who won, who lost and what parents should do in response to recent changes in the child care subsidies.
Perth, WA, 03 May 2017 - Recently, the Government made changes in child care subsidies across Australia. They will take effect on 2 July, 2018. According to Michelle Coleski, Director of three Cuddles Childcare Centre locations in the Perth area, some parents will win and some will lose:

“There are going to be winners and losers when the new system of child care subsidies kicks in. While we all get over a year to adjust, it is definitely wise to educate yourself right now and see exactly what you will be eligible for. We think it is going to help a lot of people who would struggle to find funds for child care make ends meet.”

Full passage of the scheme is now seen as a formality, as the bill has been passed by the Senate and now goes back to the lower house. The program provides $1.6 billion for child care subsidies. Part of the money will be raised by freezing family tax benefit rates for at least two years.

According to Government estimates, 816,000 families are slated to benefit from the new child care subsidy scheme. Families who make less than $65,000 per year can get as much as 85% of their child care costs taken care of under the scheme.

There are, however, some families who will see less benefits under the new scheme. It will be work tested. Those who make less than $65,000 per year and don’t meet the activity test will see their benefits drop. Right now, families who make less than $65,000 per year can receive 24 hours of child care no matter how much they work. The income level will move up to $65,710 per year, but the subsidy will be reduced to 12 hours for those who don’t work enough.

For those who meet the work test, benefits will be 85% for those who make less than $65,710 and will lessen as household income increases. Families making $170,710 per year will be eligible for 50% of their child care costs paid. This rate continues up to $250,000 household income. It tapers again above $250,000, going down to 20% at $350,000. Above $350,000 in household income, there is no child care subsidy.

Important Factors for Child Care Choices

According to Ms Coleski: “While we understand that some will lose benefits, we think the new system is going to make it easier for a lot of people to send their children to qualified child care centres. We think it is more important than ever to use discernment and due diligence when selecting child care.”

Ms Coleski concluded: “Make sure you and your child visit any child care centre you are considering. Look at how the staff handles children. Find out what they have to offer children in the way of activities. Most of all, find out who much care they take in selecting their staff. Anything less is not acceptable for your child.”.


Cuddles Childcare Centres provide child care in three conveniently located Perth suburbs. Their motto is “Learning Through Play” and they provide numerous opportunities for children to learn and have fun doing it. They pride themselves in providing the most professional and child-friendly child care in the Perth area. To learn more, visit their website: http://www.cuddleschildcare.com.au/.