Government urging families to sign up to receive new childcare subsidies

Stock image.
Stock image.

HUNDREDS of thousands of families are yet to sign up to receive new childcare subsidies.

The Turnbull Government is combining existing subsidies for childcare into a single means- and activity-tested payment.

MORE: Education Minister calls on people to update childcare details

A little more than half of the more than one million eligible families have updated their Centrelink account details via myGov in order to receive the new funding.

While 673,000 families have updated their information another 489,000 still need to make the switch.

Education Minister Simon Birmingham said the switch from July 2 wasn’t automatic and those who don’t update their details could miss out.

Required information includes estimated income for 2018/19 and approximate work hours for both parents.

Under the new system, both parents must be working, studying, volunteering or searching for work at least eight hours a fortnight to be eligible for the subsidies.

Families with annual incomes under $186,958 will no longer face a cap on the amount of fee rebate the government will pay each year.

For those earning more than this, the annual cap will lift from $7500 to just over $10,000 per child.

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