Budget fact sheets 2005 - enhancing parents' choices
The Government is investing $55.2 million over the next four years in childcare and employer support initiatives to enhance the work choices available to parents.
The childcare initiatives include increased funding for Out of School Care and Recreation (OSCAR) providers, increased income thresholds for OSCAR/Childcare subsidies and extending the Childcare Subsidy to approved home-based care, approved by the Ministry of Education.
OSCAR
From October 2005, the maximum amount of assistance funding OSCAR providers can access is increasing from $9,000 to $16,000 per year. The number of OSCAR field worker positions will also increase by six.
Increasing direct assistance to OSCAR providers will result in improved quality and choice in the sector by funding up to an estimated 100 new OSCAR programmes throughout the country. These initiatives will be supported by a communication plan to raise awareness of OSCAR services and improve providers’ knowledge and access to funding.
Increased income thresholds for OSCAR and Childcare Subsidies
From October 2006 income thresholds for OSCAR/Childcare subsidies will increase making more families eligible to help with the costs of childcare.
The increases mean that around 60% of all couples with children and 96% of sole parents (overall around 70% of all families) potentially qualify for help with childcare costs, though many may choose not to access this help.
There is currently an annual average level of around 30,000 children whose childcare costs are subsidised. The income threshold increases are estimated to raise these numbers by around 1,250 new cases, with another 3,900 existing cases receiving an increased rate of assistance.
Income thresholds for the childcare/OSCAR subsidies: current and new levels
| Rate 1 | Rate 2 | Rate 3 | ||||
|---|---|---|---|---|---|---|
| Current | New | Current | New | Current | New | |
| 1 child | 40,040 | 45,240 | 44,200 | 49,920 | 48,360 | 54,600 |
| 2 children | 49,400 | 54,600 | 54,080 | 59,800 | 58,760 | 65,000 |
| 3 children | 57,720 | 62,920 | 63,440 | 69,160 | 69,160 | 75,400 |
The amount of Childcare/OSCAR subsidy available per hour depends on household income and the number of children in a family. This table shows the level of income up to which each rate of assistance is available. Once income exceeds the threshold shown for a given rate that rate of assistance ceases to be available. The current rates are as follows: $2.91 (rate1); $2.03 (rate2); and $1.13 (rate3). All rates will be increased by 10% in October 2005, in addition to the annual CPI adjustments in April each year.
Resources to encourage employment of under-represented workers
This initiative sees investment in a range of resources to help businesses attract and retain workers from non-traditional labour pools by tackling barriers that prevent these groups from working.
A diagnostic toolkit will be developed and provided to employers to help them identify and address the barriers to participation in their particular sectors.
In addition, up to $178,000 will be made available each year to industries to pilot and evaluate proposals for improving the attractiveness of their industry to under-represented groups of workers.
Work and Income will also be piloting new initiatives that extend current employment services to a new group of people. This pilot will see partners of people receiving benefits who are seeking work gain access to employment assistance.
New assistance for parents using quality home-based Early Childhood Education (ECE)
From 1 August 2005 parents of pre-school children using approved care in their own homes will be able to access the Childcare Subsidy.
It is estimated that 950 families will benefit from the rule change that allows parents to access the childcare subsidy if they use ECE quality care in their own home.
