Child Care And Maternity Leave: What The Federal Budget Means For You

Families with young children will find themselves affected by yesterday's budget. Photo: Getty Images.

Childcare

The government is spending $3.5 billion on overhauling the childcare system.

From July 1 2017, parents can access a Child Care Subsidy (which is a single benefit based on combined family income) that will contribute to a percentage of the overall child care fees that they pay.

If your family earns less than $65,000, then 85 per cent of your childcare fees will be subsidised. If your family has a combined income of $170,000 or more, then that subsidy is reduced to 50 per cent and capped at $10,000 per year ($2500 more than it currently stands).

The government wants more people back in the workforce, so the amount of child care hours you will be able to get subsidised will depend on how much time you spend working, training, studying or volunteering. This will be monitored through a new activity test.

If you’re a stay-at-home parent with a household income of more than $65,000, you will lose access to childcare rebates.

Maternity Leave

The government is cracking down on maternity leave “double dippers”.

In the past, women were able to access 18 weeks leave at the minimum wage on top of any private leave (in accordance with any maternity leave policy in place by their employer).

Women with maternity leave schemes that are more generous than the federal government scheme will now not be eligible for any additional payment.

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