Important Changes to the New Childcare Package of 2018

From the Australian Government (Department of Education and Training):

Here are a couple of recent developments concerning the new child care package.


On 17 April 2018, the Minister for Education and Training announced that the Child Care Subsidy default withholding rate would be reduced to 5% for all families.

This follows feedback from the sector about the potential impact a 10% withholding rate could have on families who receive less than the maximum benefit of their entitlement up-front, particularly those on lower incomes, as well as on child care business arrangements.

The 5% rate is intended to strike a balance between addressing the concerns that have been raised and the risk of families incurring debts to the Government. Further information on withholding is available here.

Payment and Service Finder

The Department of Human Services Payment and Service Finder has now been updated to include the Child Care Subsidy. The Payment and Service Finder can give families a more accurate estimation of their Child Care Subsidy.

As you know, families can now complete their Child Care Subsidy assessment by providing some new information and confirming their details using their Centrelink online account through myGov.

For more information please visit

Families need to do this before 2 July 2018 to ensure the new subsidy is paid to you on their behalf.