The Australian Government recognises certain state government subsidies to reduce out-of-pocket costs as 'third-party' gap fee payments for child care subsidy purposes.
This enables these subsidies to be applied after Child Care Subsidy (CCS) has been deducted from a family's childcare fees.
The Australian Government recognises the gap fee kindergarten subsidy as a third-party payment of gap fees.
Long day care services can deduct this subsidy from a family's fees after applying CCS. This arrangement will ensure that eligible families benefit from fee-free kindergarten.
Examples
Example 1
Lee's child, Mai, is 4 years old and is enrolled at the local long day care service for 2 days a week. Mai attends day care for 20 hours each week, which includes 15 hours in the approved kindergarten program.
Lee's circumstances:
- Eligible for a CCS rate of 60%.
- Eligible for 72 hours a fortnight subsidised care.
- The service charges $125 a day for a 10-hour session, which is $250 a week before the gap fee subsidy is deducted.
The service is a Queensland Government-approved kindergarten program provider that has opted into free kindy and receives Queensland Kindergarten Funding (QKF) subsidies to help offset the cost of providing a teacher-delivered kindergarten learning program.
| Childcare fees |
$250.00 |
$13,000.00 |
| Less CCS at 60%
b |
$142.50 |
$7,410.00 |
| Equals out-of-pocket cost (gap fee) before subsidies |
$107.50 |
$5,590.00 |
| Free kindy
c |
$80.63 |
$3,225.20 |
| Parent cost (hours of care outside kindergarten program) |
$26.87 |
$1,074.80 |
Notes:
- Weekly and annual costs are based on a 52-weeks of care. Free kindy is paid by the service equally over 40 weeks.
- Includes 5% withheld from CCS which the family can claim in their tax return at the end of the financial year.
- Amount that the Queensland Government will pay for the kindergarten program to make it free.
Example 2
John’s child, Connor, is 4 years old and is enrolled at the local long day care service for 3 days a week. Connor attends day care for 30 hours each week, which includes 15 hours in the approved kindergarten program.
John's circumstances:
- Eligible for the maximum CCS rate of 90% CCS.
- Eligible for 72 hours a fortnight subsidised care.
- The service charges $125 a day for a 10-hour session, which is $375 a week before the gap fee subsidy is deducted.
The service is a Queensland Government-approved kindergarten program provider that has opted into free kindy and receives QKF subsidies to help offset the cost of providing a teacher-delivered kindergarten learning program.
| Childcare fees |
$375.00 |
$19,500.00 |
| Less CCS at 90%
b |
$320.64 |
$16,673.28 |
| Equals out-of-pocket cost (gap fee) before subsidies |
$54.36 |
$2,826.72 |
| Free kindy
c |
$27.19 |
$1,087.60 |
| Parent cost (hours of care outside kindergarten program) |
$27.17 |
$1,086.80 |
Notes:
- Weekly and annual costs are based on a 52-weeks of care. Free kindy is paid by the service equally over 40 weeks.
- Includes 5% withheld from CCS which the family can claim in their tax return at the end of the financial year.
- Amount that the Queensland Government will pay for the kindergarten program to make it free.