The Abbott government has unveiled its long-promised childcare package pledging more money for many families from 2017 but stripping others of nearly all of the childcare assistance they currently receive.
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Here's how the current system, the government's proposed system and suggestions by the Productivity Commission stack up:
NUMBER OF PAYMENT TYPES
Current system:
* A Child Care Benefit, which is means tested.
* A Child Care Rebate, which is not means tested.
* Jobs, Education and Training Fee Assistance for parents who qualify for the maximum rate of the Child Care Benefit.
Productivity Commission report:
Combine all three payments into a single means-tested subsidy.
New government policy:
Combine all three payments into a means-tested single subsidy, with additional payments for disadvantaged and vulnerable children.
PAYMENT AMOUNTS
Current system:
Varies depending on work and income circumstances. The Child Care Rebate covers 50 per cent of out-of-pocket child care expenses up to a maximum of $7,500 per child per year. Means-tested Benefit for a non-school aged child is $4.10 an hour.
Productivity Commission report:
A subsidy rate set at the median price across different services. Families at or below $60,000 get 85 per cent back and families at or above $250,000 get 20 per cent back. For children under three, $7.40 per hour rate for long day care, $6.94 for all children in family day care and as well as nannies.
New government policy:
Families earning up to $65,000 will get 85 per cent back per child of the actual fee or benchmark price (whichever is lower). Families on about $170,000 and above will get 50 per cent back. The subsidy rate is based on projected mean price in 2017, plus 17.5 per cent for long day care and 5.75 per cent for family day care. This will be $11.55 an hour for long day care, $10.70 for family day care and $7.00 for nannies.
Families earning under $185,000 will not have a cap on their subsidy amount. Those earning more than $185,000 will have a cap of $10,000.
Current system:
Parents are currently able to access 24 hours of the means-tested Child Care Benefit per child each week without having to meet a work or study test. The non-means-tested Child Care Rebate requires both partners to work or train "at some time" during the week.
Productivity Commission:
Both parents need to work or study for 24 hours a fortnight to qualify for childcare subsidies. Would be exempt if they are on income support payments.
New government policy:
Parents will have to work between 8 and 16 hours a fortnight to get 36 hours of subsidy over the same period. If they work up to 48 hours, they will get 72 hours of benefit. If they work 49 hours they will get the full 100 hours of benefit. Families earning less than $65,000 a year will get up to 24 hours per fortnight of childcare.
