After a year of inflation and rising cost of living, the end of the financial year is drawing near on 30 June, with a new period to begin 1 July.
As families prepare to file tax returns and plan for a new financial year, there are some key changes to expect. For 2023-24, parents will be affected by new conditions involving child care subsidies, paid parental leave payments and a national energy bill relief.
Child care subsidy
For families who earn under $530,000, Child Care Subsidy (CCS) will increase from 10 July 2023.
The amount will depend on the family’s income but the limit to get the maximum CCS is increasing. Families who earn up to $80,000 will get an increased maximum CCS amount, from 85 per cent to 90 per cent.
If a family earns over $80,000, they may get a subsidy from 90 per cent, which goes down by 1 per cent for each additional $5,000 earned.
If a family has more than one child under 5 years old, they’ll get a higher rate for one or more children.
The low income limit for Additional Child Care Subsidy Transition to Work is increasing to $80,000 as well.
All of these changes are applied automatically if a family already gets CCS.
Paid parental leave
From 1 July 2023, the paid parental leave scheme is changing. Parents with children whose birth is on or after this date will be affected by the changes, however, if birth mothers or first adoptive parents can claim up to 3 months before their child’s birth or adoption.
Parental Leave Pay and Dad and Partner Pay are combined into one payment, which will increase from 90 days (18 weeks) to 100 days (20 weeks).
There will be a combined family income limit as well that will occur whether a person is single or partnered. Those who don’t meet the individual income limit of $156,647, will see a combined family income of $350,000.
Parents will be able to use their Parental Leave Pay until their child turns 2, and each parent is reserved a portion to use. Any unused portions get lost in order to encourage both parents to access the payment. Single parents will receive the full payment.
There are proposed changes as well– subject to legislation passing– that include increasing Parental Leave Pay to 26 weeks by 2026.
National energy bill relief
New energy payments will be available for the 2023-24 financial year as the government partners with states and territories to provide up to $3 billion in electricity bill relief for eligible households and small businesses.
The bill relief will vary across states and territories.
In NSW, Queensland, South Australia and Tasmania, the total bill relief will be $500 per eligible household. In Western Australia and the Northern Territory this number is $350, and in the ACT it’s $175.
In Victoria, the bill relief is $250 per household, plus a one off $250 direct payment through Victoria’s 2023 Power Saving Bonus Payment.