Families urged to switch to new child care benefits system

Parents are being reminded to make the switch to the Turnbull government’s new child care benefits system, which will roll out next month.

From July 2, child care benefit and child care rebate payments will be replaced with one subsidy.

Education Minister Simon Birmingham is reminding parents that the transition to the new system isn’t automatic, with families required to make the switch through myGov.


He said those who don’t make the switch could miss out on hundreds of dollars.

“People registering for the new childcare subsidy are going to be around $1300 per child per annum better off on average,” he said.

Currently over 300,000 families receiving child care benefits have yet to sign up to the new system.

Under the new child care benefits system, changes include rebates targeted towards families working, looking for work, studying or volunteering.

Means-tested rebates would also see low-income earners receiving up to an 85 per cent subsidy for their child care costs compared with 72 percent previously.

For families who don’t make the switch by July 2, there will be a three-month grace period.