2010 Budget Family Day Care Impact

2010-11 Government Budget

Summary of Government changes affecting the Family Day Care Sector from Family Day Care Australia

A number of announcements regarding funding for childcare services were included in the 2010-11 Budget that was delivered by the Treasurer on Tuesday evening.

Here is a brief rundown on the announcements, with comments regarding the impact on family day care:

Child Care Rebate

• The annual Child Care Rebate (CCR) will now be capped at $7500 per child; the cap was previously set at $7778.
• This will not change the percentage of out-of-pocket expenses reimbursed by the Commonwealth, which will stay at 50 per cent up to the annual cap. It is anticipated this change will not affect the vast majority of parents claiming the Child Care Rebate.

Start Up Payment

• No more $1500 or $5000 (Remote Areas) Family Day Care Start Up Payment for new family day care carers as of 1July 2010.
• This will have a significant impact on the family day care sector. Carers will not get funding from the government when they start family day care.

What is Family Day Care Australia doing about the Start Up Payment?

• Since this announcement was made, Family Day Care Australia has been in ongoing discussions with DEEWR representatives to gain assurances that a transitional arrangement will be implemented for those currently committed to mandatory requirements with the understanding that the start up grant is available.
• Applications received on or before 30 June 2010 will be processed. No existing family day care carers will be affected.

Family Day Care Australia is continuing to work with DEEWR to finalise the details of the transitional arrangements and will update members as soon as further details are available.