July 1, 2008

Childcare Costs take a dive

 

 

NO FEE INCREASE AT ERINA BAPTIST PRESCHOOL

First and foremost, contrary to the news and publicity concerning the upward direction of Fees in many other Centres, we are pleased to announce that there will be no increase in the daily fees at Erina Baptist Preschool as at July 1. While have had 4% wage rises in the first half of the year, we are determined to keep Fees stable for parents in this tough economic climate.

Our Daily Rates vary slightly depending on the age group and the 'staff to child' ratio that is required.

DOLPHIN'S ROOM                    Age 4-5's   (min staff ratio 1:10 children)         $57 per day

KOOKABURRA'S ROOM           Age 3-4's   (min staff ratio 1:10 children)         $57 per day 

BILBY'S ROOM                         Age 2-3's   (min staff ratio 1:8 children)           $60 per day

JOEY'S ROOM                          Age 0-1's   (min staff ratio 1:5 children)           $65 per day

These costs do not include the Federal Government subsidy to Parents in the form of the Child Care Benefit or the Tax Rebate.

CHILD CARE BENEFIT INCREASE

From July 1, the Child Care Benefit has increased by 10 cents per hour to $3.47. The Child Care Benefit is administered by the Family Assistance Office and depends on your family's income. The lower the income the greater the subsidy. For ease of administration for you, this subsidy, once agreed between you and the Family Assistance Office, is paid directly to us.

You pay the remaining portion direct to us on a fortnightly basis or for a school term. These, as well as other authorised expenses, form your Out-of-Pocket expenses.

TAX REBATE INCREASE

The Government pays you a further subsidy on these Out-of-Pocket Expenses.  As from July 1 the Tax Rebate increases from 30% to 50% and will be paid quarterly. So your Tax Rebate on out-of-pocket Expenses for July to September, will be paid in October. There is a Work, Training & Study Test for both parents (more information can be accessed from the website listed below) to qualify for this extra rebate.

YOUR COSTS AFTER GOVERNMENT SUBSIDIES

When allowance is made for these all-important Government benefits, in approximate terms, it should cost a family wanting to send one child our Preschool:
                                                                           FAMILY INCOME              FAMILY INCOME              FAMILY INCOME

                                                            $55,000                       $75,000                     $100,000

                                                                             WAS           NOW              WAS              NOW                WAS             NOW

Daily Fee (say, for Dolphins)               $57.00   $57.00         $57.00    $57.00        $57.00      $57.00
   less Rebate                                    
$26.19   $27.61         $18.50    $19.92          $8.68      $10.31
New Daily Rate                                
$30.81   $29.39         $38.50    $37.08        $48.12      $46.69
If you qualify for the Tax Rebate, the Daily Rate reduces further:

   less Tax Rebate (paid Quarterly)         $9.24   $14.69         $11.55    $18.54        $14.43      $23.34
Real cost (approx daily rate)             
$21.57   $14.70         $26.95    $18.54        $33.69      $23.35

(Intended as a helpful estimate only - accurate figure will depend on income as assessed by the Family Assistance Office) 

REFERENCES:

For the Daily Rate after CCB on other Income levels, check on our Website at

    http://www.erinabaptistpreschool.com.au/page20.htm

 

For verification of CCB percentages, link to the official Government website:

    http://www.oececc.gov.au/child_care/child_care_benefit_ready_reckoner.htm

 

For further information on the Tax Rebate and the Work, Training Study Test, link to the official Government website:

    http://www.familyassist.gov.au/Internet/FAO/FAO1.nsf/content/-work_study_test.htm

To access a worksheet to calculate the Tax Rebate (but change the Rate to 50%), link to the official ATO website:

    http://www.ato.gov.au/individuals/content.asp?doc=/Content/00098400.htm&page=8&H8