What happens now?
There is a lot going on in an already complicated space.
This is what you need to know.
For some families, Labor’s child care boost may seem a long way down the road. It is.
Don’t expect any change to your child care costs to happen right away. Labor’s key offer of a higher child care subsidy is not planned to come into play until July 2023 - that’s 14 months from election day.
In rough terms, and assuming a 10 hour child care day, expect a boost (compared to what you pay currently) of $6-$38 per day depending on your family income up to $530k.
This is not the only story in child care costs right now.
The previous government made some changes that have only recently come into play, and another important change around paid parental leave that is yet to be implemented.
For those families planning child care costs and parental leave, there is more to the mix.
That time of the year when your subsidy runs out and your child care costs go crazy….
This is a big deal for families with income between $190k - $355k. If you are a family that has experience with the cap - you know the dread when your child care costs go up in later part of the financial year.
If you are a family that has been waiting for this dreaded moment to kick in this year - exhale now, those days are gone.
This was announced last year, and for many families it is about now that child care costs suddenly sky rocket. No more caps!
As an example, a family with a total income of $200k, could be entitled to more than $5k in extra subsidy per child now that the cap has been removed. That’s a big change.
Families with more than one child in care under 6 are winning already
The previous government rules on giving a boost to families with more than one child in care under 6 are here already.
The new rules kicked in on March 7 this year. These rates will stay the same when the Labor policy comes in July 2023 as Labor has promised to match this deal.
This is a nice little sweetener in addition to the boost in subsidy for the first child.
Families with more than one child in care under 6 have some interesting opportunities…
There is a lot to know about the deal for families with more than one child in care under 6.
It’s more than just a boost to the subsidy of the second child, there are a bunch of strategies to make the most of this.
Stay tuned - we are learning more about the opportunities available and look forward to sharing them with you.
What is going to happen with the planned enhancements to Paid Parental Leave?
This is complicated.
We did a lot of work getting to the bottom of this when announced in the May Budget.
The changes are aimed at increasing flexibility, removing disadvantage for single parent families and not penalising primary income earning mums.
What happens with a new Government?
We will be keeping a close eye on what happens here..stay in touch to know what we know.
It’s a pretty complicated timetable
This is vitally important stuff for young families as it is.
Throw in rule changes, timetables and a touch of uncertainty in delivery of promises and you have, well, more complexity.
That is where we help.
A complicated timetable of changes, on top of changing rules means more work for families trying to make informed plans.
It’s back to the kitchen table
The election is done, promises have been made, and now we will wait and see what is delivered.
Families need a clear understanding of what rules will apply to them both now and in the future - now we know what the rules are (or will be) we can work to clarify their impact on your family and plans.
Make sure you follow us or sign up for our updates to keep in the loop.
Brendan
0412 181 031