Childcare is not an easy venture to undertake. It requires the commitment of significant moral, emotional, physical, material, financial, and other types of resources. There is so much said about the physical and emotional resources.
But it appears so much is not said about the material and financial resources that need to be committed. Childcare is quite expensive. It becomes much worse if you are a new parent, and you are not yet experienced in the art of parenting. Navigating these costs as a new parent is quite an arduous task to pull off.
The government recognises these sacrifices that parents have to put up with and have stepped in to help. The government introduced the Childcare Subsidy, known as CCS for short. The CCS seeks to alleviate some of the financial commitments you have to make as a parent. The CCS also covers daycare fees.
The amount expended on each child's care will typically be dependent on several factors. Some of these include:
Age of Your Child
If your child is at the earliest stages, the amounts you have access to will be very low. Compared to other age groups, the financial costs at this age are not that substantial. However, as the child grows, the costs expand. In this case, the costs involve such things as feeding, educational materials and resources, and much more.
Number of Days Your Child Spends in Child Care
The number of days your child spends in child care will determine the costs of child care. The more days they spend, the higher the costs the parents have to spend on child care.
If you are eligible for the Childcare Subsidy (CCS), this will greatly reduce your costs. This is because the government will augment them.
How Your CCS Subsidy is Calculated
Several factors are involved in calculating the amount of child care Subsidy you will have access to. They include:
1. The CCS Percentage
The CCS Percentage is simply based on your income. It is expressed as a fraction of your income. The rate of CCS Percentage to your income is inversely correlated.
As a result, if your income is high, the CCS Percentage will be quite low. On the other hand, if the income is low, the CCS Percentage will be high. This is because the government has to step in to provide more subsidies and assistance to relatively low-income parents.
2. How Much Care Is the child Getting?
Away from the childcare centre, how much childcare is the child getting at home? The government thinks that if it is to provide your child with care, you must have invested some care in terms of hours in the child.
3. The Hour-by-Hour Rate
The government sets some an hourly rate for the childcare subsidy. This is the rate upon which the government decides to pay the CCS Subsidy. It does not matter if the actual rate charged by your childcare provider is higher than the one set by the government.