The Child Care Subsidy for Grandparents
Grandparents Now Eligible For the Childcare SubsidySome grandparents are now eligible to apply for the Child Care Subsidy under Australia’s new Child Care Package. The Grandparent Child Care Subsidy has been designed to ensure subsidised child care is available for eligible children under the care of one or more grandparents. Under the plan, grandparents who are primary carers of a grandchild, may be eligible to receive up to 100 hours of fully-subsidised care per fortnight for each grandchild. Intended to support the growing number of grandparents who are the primary caregivers of grandchildren in Australia, the Additional Child Care Subsidy (Grandparent) is an important element of the new Child Care Package which came into effect on July 2, 2018. In this article, we explore the eligibility conditions and the application process for grandparents.
Additional Child Care Subsidy (Grandparent)Who is eligible? The Department of Human Services sets out eligibility requirements for the Additional Child Care Subsidy for Grandparents. According to their requirements, the applicant or thier partner must:
- Be eligible for the Child Care Subsidy
- Receive an income support payment
- Be the grandparent (or great-grandparent) of the child (including by adoption, step-parents including former stepparents, artificial conception, de facto relationships, or surrogacy arrangements)
- Be responsible for caring for the child 65% or more of the time
- Make daily decisions for the child including care, welfare and development
What support will grandparents receive?Eligible grandparents can access up to 100 hours of subsidised care each fortnight for their grandchild. The Department will pay the Subsidy direct to the approved care provider of the grandchild. The amount paid will be the lower of:
- 100% of the fee charged, when it is equal to or below the hourly rate cap, or
- Up to 120% of the hourly rate cap, where the fee charged is above the hourly rate cap.
What is the hourly rate cap?A different hourly rate cap applies depending on the type of child care you access:
- Centre Based Day Care $11.77 (including long day care and occasional care)
- Family Day Care $10.90
- Outside School Hours Care $10.29 (before, after and vacation care)
- In Home Care $25.48 (per family)