A family accessing the average 28.5 hours of childcare per week could save about $1,300 per year under a new subsidies system that begins in July, according to Turnbull government modelling.
812,000 families have already switched over to the new system ahead of the July 2 deadline - but 350,000 are yet to do so, risking missing out on payments.
THE NEW CHILDCARE SUBSIDY: WHAT IS IT AND HOW TO MAKE SURE YOU DON'T MISS OUT
"While many families are set to be hundreds if not thousands of dollars a year better off, transitioning to the new system isn't automatic and families need to make the switch to the new system through myGov,” Education Minister Simon Birmingham said.
What is the new system?
The government is cancelling existing payments like the Child Care Benefit and the Child Care Rebate, merging them into a single means-tested subsidy.
The old payments will stop as soon as they are replaced with the new subsidy, although the government has indicated there will be some back-payments for those who miss the deadline.
Families on the lowest incomes will receive the highest level of subsidy, with 85 per cent of their childcare costs covered, while families in the highest income bracket will have just 20 per cent subsidised.
The government will also assess how many hours a fortnight couples spend working, studying, interning, searching for a job or volunteering.
The new childcare subsidy: how to ensure you don't miss out
The more hours you do, the more hours of childcare the government will pay for – but the rate is calculated on whichever partner does less.
If one parent does less than eight hours of “activity”, the family is ineligible.
But families that earn a combined income of less than $67,000 will still get access to a baseline allowance of 24 hours of paid care.
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