Family Payments Budget Announcement 2015 27 Nov 2015

Blog / Financial Planning

 

New child care subsidy
From 1 July 2017, a new single Child Care Subsidy (CCS) will be introduced. CCS will replace the existing:
• Child care benefit and
• Child care rebate.
 
CCS will be payable to families who use an approved child care service for a child who is under 13 years old. In addition, they need to meet an activity test (working, studying, training or other recognised activity).
Child Care Subsidy payments will be paid directly to approved child care service providers. Families will pay the gap between the level of subsidy they receive and the actual fee charged by the service.
The amount of Child Care Subsidy payable is determined by:
• amount of work, study, training or other recognised activity undertaken
• hourly caps depending on the type of care
• family income.
 
Amount of work, study and training
Step
Hours of activity (pf)
Hours of subsidy (pf)
1
8-16
Up to 36
2
17-48
Up to 72
3
49 or more
Up to 100
 
Hourly caps
Type of care
Hourly cap
Centre based long day care
$11.55
Family day care
$10.70
Outside school hours care
$10.10
 
Family income
• families earning less than $65,710 will be eligible for 85% of the actual fee paid up to an hourly cap
• families earning $170,710 or higher, will be eligible for 50%
• families earning $185,710 or higher, an annual cap of $10,000 for assistance per child will apply each year.
 
New child care safety net
From 1 July 2017, the Child Care Safety Net will provide support to disadvantaged or vulnerable families. The Child Care Safety Net has three key components:
• additional Child Care Subsidy to provide access to early learning
• Community Child Care Fund which is a competitive grants programme for approved child care services to reduce barriers to access child care
• Inclusion Support Programme which assists approved child care services provide access for children with additional needs.
 
Cessation of the Large Family Supplement of Family Tax Benefit Part A
Currently the Large Family Supplement is paid as part of Family Tax Benefit Part A to families with three or more children. The Government has proposed the following changes:
• From 1 July 2015 to 30 June 2016, the Large Family Supplement will only be paid to families with four or more children.  
• From 1 July 2016, the Government will cease to pay the Large Family Supplement.
 
Family Tax Benefit (FTB) Part A — reduced portability
From 1 January 2016, the Government will reduce the portability of Family Tax Benefit Part A. Families will only be able to receive FTB Part A for six weeks in a 12 month period whilst overseas.
Currently FTB Part A recipients who are overseas are able to receive their usual rate of payment for six weeks and then the base rate for a further 50 weeks.
 
‘No Jab No Pay’ policy
From 1 January 2016, families will no longer be eligible for subsidised child care or the Family Tax Benefit Part A end-of-year supplement (up to $726.35 for each child) unless their child is up-to-date with all childhood immunisations.
Exemptions will only apply for medical reasons.
 
Paid parental leave
The Government will remove the ability for individuals to double dip when applying for the existing Parental Leave Pay (PLP) scheme, from 1 July 2016.
Currently, individuals are able to access payments from both the Government PLP scheme in addition to any employer-provided parental leave entitlements.
However, the Government has confirmed it will ensure that all primary carers would have access to parental leave payments that are at least equal to the maximum PLP benefit (currently 18 weeks at the national minimum wage).
 
 
 

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Disclaimer and Warning
The information above is of a general nature only.  It should not be used as a source to make financial decisions.  It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status.  We recommend that if you are looking for advice on this matter, you should contact us .

 


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SOLOMON FORMAN SMSF SPECIALIST ADVISOR SMSF SPECIALIST AUDITOR Forman Financial Services SOLOMON FORMAN CERTIFIED FINANCIAL PLANNER® Forman Financial Services
 
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