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In pertnership with Guild Insurance
Australian Childcare Alliance
The Federal Government’s Fair Work Amendment (Family and Domestic Violence Leave) Bill 2018 received royal assent on 12 December 2018.
The Child Care Management System (CCMS) is closing down and the Department urges early learning services to submit requests to...
Under the new Child Care Package, as of Monday 14 January 2019, approved providers will be required to report drop...
Kindergarten/preschool aged children can receive Child Care Subsidy (CCS) even where families do not meet the activity test. Families can...

The Child Care Subsidy (CCS) default withholding rate will be reduced to 5% for all families.

This follows frequent feedback from the ACA and the broader Early Childhood Education and Care (ECEC) 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. This will particularly affect those families on lower incomes, as well as on child care business arrangements.

DET reports that 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 Federal Government.

Further information on withholding, along with other FAQs, is available here.

The media release about these two new developments from Simon Birmingham, Minister for Education and Training, is available to read here