The National Childcare Scheme is designed to be flexible, recognising that childcare needs are different for each family. In creating a single scheme, it was important to recognise these differences and create a system that could respond to them.
For this reason subsidies are awarded as an hourly rate, along with a maximum number of weekly hours that the subsidy will be paid for.
The subsidies are based on the amount of childcare needed, as agreed between parents and providers, up to a maximum number of subsidised hours. For Universal subsidies the maximum number of subsidised hours that may be awarded is 45. For income assessed subsidies the maximum number of subsidised hours that may be awarded are either 45 or 20 depending on their work/study status. If a parent (and their partner, if they have one) are working, studying or training, the maximum number of subsidised hours available per week is 45. If a parent (or their partner, if they have one) are not working, studying or training, the maximum number of subsidised hours available per week is 20.Parents will be given an award that includes the maximum number of hours (45 or 20) which may be subsidised. They and their providers work together to agree the childcare hours needed, based on a combination of what a parent needs and what a provider can reasonably offer. The NCS subsidy is then applied to the actual amount of childcare used, up to the maximum amount of subsidised hours available under the Scheme limits.
Any additional hours where no childcare is actually being used, for example to make up the difference between the hours of childcare used and the session type set by the provider, are unsubsidised hours and are a matter for the parent to pay as part of the copayment to the provider. Providers, as private businesses, set their own fees, sessions and admissions policies.