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Child Care Subsidy: What Is It And How It Works

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Child Care Subsidy: What Is It And How It Works

Many children under the age of six spend the vast majority of their time in child care facilities. Working parents that do not have other options when it comes to caring for their kids while they work opted to hire the services of child care. Another challenge that they face is looking for additional resources to fund those services. Fortunately, child care subsidy is a form of payment assistance provided to families with child care expenses. The funding is billed directly to the provider.

What is a Child Care Subsidy?

If your family is currently struggling with the resources to pay for child care services, consider applying for a child care subsidy. They provide support to families by paying a portion of the fees charged by the provider. Child care subsidy has three main features. These are:

Eligibility for Child Care Subsidy

Some requirements need to be complied to be eligible for a child care subsidy. The child must be 13 years old or younger and had not attended secondary school. If your child did not meet these requirements, then you are not eligible to apply for the subsidy, unless it was an exceptional case.

Older children with disabilities, from ages 13 until 18 and currently attending secondary school at a young age, are exceptional circumstances of granting eligibility for the subsidy.

Determining Child Care Subsidy

There are criteria specified for your family to enjoy the subsidy program. These criteria are family income, type of child care services, and the results of an activity test. The child care subsidy can be paid at an hourly rate, or in some cases, each financial year.

The subsidy does not pay the entire amount that the provider offers. Specific percentages are subsidised based on family income. For example, if the family earns more than $68,000, the subsidy they are going to receive is 85% of the actual charge fee, whichever is lower.

Types of Child Care Services

The amount of funding granted to the family depends on their family income, the result of an activity test, and the kind of child care service. These are the different types of child care services to pick from, babysitter, nanny, au pair, daycare centres, family daycare, relative care, and child care swap. Commonly the subsidy is paid on an hourly basis.

Other Forms of Child Care Subsidy

Child care subsidy also awards children belonging to disadvantaged families or vulnerable. The support helps children that were at risk of abuse. It also assists grandparents as supplementary income support, especially if they are the child’s primary caregiver.

Also, subsidies provide families that are experiencing financial difficulties, as well as low-income families.

How it Works

Child care subsidies provide financial support to families that meet the requirements.  For every type of child care service, there are parameters before you get approved for financial assistance. Aside from sending an application to receive a subsidy, it undergoes a screening process from the committee in charge of this program.

The screening process is to ensure there is no misuse of the child care subsidy. Also, validation of the data mentioned in the application form is required. Approval of the funding application is only after the verification of details. You can start enjoying the program’s benefits.

Remember, the subsidy does not pay the entire child care services. Only a certain percentage is allotted. Hence, you will pay the remaining fees that the program does not cover. Nevertheless, despite not having full coverage, at least you get to save some of the expenses and use it to buy other necessities or essentials that your child might need.

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About The Author
Anne Davis is a freelance writer who offers to ghostwrite, copywriting and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.
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