Unpacking the Changes to Kindy Family Tax Benefits in Queensland

Blog Image for article Unpacking the Changes to Kindy Family Tax Benefits in Queensland

At the start of 2023, the Queensland government introduced a new Kindergarten Funding program to provide free or cheaper kindy for many families across the state. This new funding program replaced the Queensland Kindergarten Funding Scheme (QKFS) and will provide a $645 million boost to the early childhood education sector over the next 4 years.

Let’s dive into how the new kindy funding program works.

What is kindy?

Kindergarten or kindy is a part-time service that offers government-approved early childhood education programs in the year before Prep. While kindy programs are optional, these high-quality programs provide children with meaningful experiences and interactions that are intended to set them up for success throughout their schooling and into the future. 

Kindy programs use play-based learning that supports children to develop a love of learning while making friends and developing a range of vital life skills. All kindy programs must be delivered by a university-educated early childhood teacher.   

Children can start kindy in the year they turn 4 years old by 30 June. This is the year before they start their first year of school, known as Prep.

How the new kindy subsidies work

Two new affordability subsidies are available to eligible families - the Kindy plus subsidy and the Kindy Family Tax Benefit. The Kindy plus subsidy is for families of children who meet 1 or more specific criteria. Families that are eligible for the Australian Government's Family Tax Benefit Part A or Part B in the financial year prior to enrolment can receive the Kindy Family Tax Benefit subsidy.

The kindy savings or subsidies are paid directly to the kindy provider who passes the savings onto families in the form of reduced fees. To receive these savings, families must confirm their eligibility with the program provider. Alternatively, families can also use the eligibility checker to calculate their potential savings based on the type of kindy service their child attends. 

Kindy programs are delivered at either a sessional kindergarten or in a long daycare setting. Approved sessional kindergartens run 600-hour kindy programs for set terms and hours during a year. They provide kindergarten without extended hours of care.

Alternatively, approved long day care services providing a kindy program usually operate at least 10 hours a day, Monday to Friday, for at least 48 weeks a year. They provide a 600-hour kindergarten program and extended hours of care. Long day care services may also attract the Child Care Subsidy to reduce fees.

The way the kindy subsidy works depends on your individual circumstances. Some families may meet the kindy plus eligibility criteria, whereas others may qualify for the kindy subsidy through the Family Tax Benefit (FTB).

Kindy plus eligibility requirements

You might be eligible to receive Kindy plus or fee-free kindy if you answer yes to any of the following questions. Do you:

  • Hold a current Australian Government Health Care Card (HCC) with the child named on the card?
  • Hold a current Australian Government Pensioner Concession Card (automatic HCC entitlements)?
  • Hold a Department of Veterans' Affairs Gold Card or White Card?
  • Have formal communication, such as a letter, from the relevant agency stating the intent to issue a HCC?
  • Have evidence of formal foster or kinship care arrangements?
  • Have 3 or more children of the same age enrolled in the same year?
  • Have a child who is identified as living in a formal child protection out-of-home care arrangement?
  • Identify as Aboriginal and/or Torres Strait Islander?
  • Hold a temporary visa and in the process of seeking asylum, or are you a family and child who have entered Australia under the Australian Government's Refugee and Humanitarian Program?

Plus, if you attend a sessional kindy and experience temporary financial hardship you might also be eligible for the Kindy plus subsidy.

If you think you could be eligible for the Kindy plus program, the next step is to chat to your child’s kindy provider, whether that be a sessional kindergarten or a long day care provider. They should be able to confirm your eligibility. 

If you answered ‘no’ to some of the questions above, you might still be eligible for cheaper kindy if you receive Family Tax Benefit or attend a sessional kindergarten.

Kindy Family Tax Benefit (Kindy FTB) subsidy

If you receive Part A or Part B of the FTB in Queensland, you’ll benefit from reduced fees regardless of whether your child attends a sessional or long day care kindergarten. With that said, you’ll receive different savings amounts depending on the type of kindy your child attends. For example, you’ll receive:

  • Up to $3,544 per year if your child is enrolled in a sessional kindergarten, or
  • $500 per year if your child attends kindy in a long day care. The difference is less than in a sessional kindy because you also receive Child Care Subsidy (CCS) from the Australian Government.

Even if your Family Tax Benefit changes and you become ineligible for the FTB on the 1st of July, you’ll still receive the Kindy FTB subsidy for the remainder of the year.

If you think you could be eligible to receive assistance thanks to your FTB status, you should talk to your kindy provider. They’ll be able to confirm your eligibility and provide you with your final out-of-pocket costs.

To receive kindy assistance, you’ll need to provide your kindy service with a copy of your FTB reconciliation, also known as a balancing letter. This is used to confirm that you receive the FTB and are also eligible to receive the Kindy FBT subsidy.

Free kindy in 2024

From the 1st of January, 2024, kindy will be free for eligible-aged children who attend a government-approved program offering the free kindy program. The free kindy program applies to the 15 hour a week kindergarten program (600 hours a year), which must be delivered by a qualified early childhood teacher. Families will benefit from the free kindy program regardless of whether their child attends a sessional kindergarten or kindy in long daycare environment.

The free kindy program is intended to remove cost as a barrier to participation and improve educational outcomes for Queensland children. Quality kindy programs offer lifelong benefits to children. These programs help to foster a love of learning, helping to shape their development and set them up for success in the future.

For more information on the free kindy program, please visit the Queensland government website.

Use the Care for Kids childcare search tool to find a kindy in your local area. Shortlist, compare and secure your child’s spot at a kindy provider that you both love. Easily view their National Quality Standard (NQS) rating and read reviews from other parents whose children have attended the service.

 

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