THE federal government will support grandparents on income support who are primary carers of their grandchildren, through access to subsidised childcare.
It has committed more than $20 to exempt grandparents from the Child Care Subsidy activity test.
Grandparent carers who receive income support will be able to access up to 100 hours of child care a fortnight without any out-of-pocket costs. It comes under the new Child Care Safety Net, which was part of the new Jobs for Families childcare package introduced to Parliament late last year.
The decision follows extensive consultation with Australian families, the childcare sector and seniors groups.
Minister for Education and Training Simon Birmingham said the scheme would support an estimated 3900 grandparents who care for 6300 children.
"A consistent message that came out of our consultations was that grandparent primary carers provide a vitally important role in our community, often stepping in to look after their grandchildren when these children have been through stressful and other adverse circumstances," he said.
"Childcare provides not only additional learning opportunities to children but also valuable respite to older Australians who have stepped in to become the primary carer in their retirement years.
"One of the greatest practical challenges for grandparents raising grandchildren are the costs associated with that care, which includes childcare."
Mr Birmingham said grandparents were unlikely to be working or meet an activity test.
"Grandparents are, however, likely to need access to affordable, longer term and greater hours of childcare for their grandchild and this measure specifically aims to provide this much-needed assistance," he said.
"This means grandparents should not be left out of pocket in accessing child care."
Funding for grandparents on income support who care for their grandchildren more than 65 per cent of the time is based on the actual hourly fee charged, up to the capped rate of 120 per cent of the new Child Care Subsidy, which would begin from July next year.
The government will also support grandparent primary carers not on income support by providing an exemption to the activity test under the new Child Care Subsidy so they can get subsidised care of 100 hours a fortnight based on family income.
The Jobs for Families childcare package provides more than $3 billion as part of an investment of almost $40 billion in childcare and early learning support within the next four years.
"Families using childcare in 2017, on family incomes of between approximately $65,000 and $170,000 will be around $30 a week or $1500 a year better off under the legislation to be introduced," Mr Birmingham said.
