Subsidy Formula:
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Definition: This calculator estimates the Australian government's Child Care Subsidy (CCS) for families in New South Wales based on their circumstances.
Purpose: It helps families understand how much financial assistance they may receive for approved child care services.
The calculator uses the formula:
Where:
Explanation: The subsidy is calculated based on the lesser of care hours or parent activity hours, multiplied by the capped rate and adjusted for income.
Details: Accurate estimation helps families budget for child care costs and understand their eligibility for government assistance.
Tips: Enter the child care hours needed, parent activity hours, hourly rate cap (default $12.20), and taper rate (default 0.5). Taper rate must be between 0 and 1.
Q1: What is the hourly rate cap based on?
A: The cap is set by the Australian government and varies by child age and service type (default is for center-based day care).
Q2: How do I determine my activity hours?
A: Activity hours include paid work, approved study, training, volunteering, or other recognized activities.
Q3: What affects the taper rate?
A: The taper rate increases with family income, reducing the subsidy percentage (0% to 85%).
Q4: Are there annual caps on the subsidy?
A: Yes, depending on family income, there may be an annual cap on the total subsidy amount.
Q5: Does this calculator account for multiple children?
A: No, this calculates subsidy for one child. For multiple children, calculate separately and sum the results.