The Childcare Subsidy - your questions answered
In this post we will answer your questions about how the government Childcare Subsidy works and whether you may be eligible for it.
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Logan WhitelawMarch 03, 2022
In this post we will answer your questions about how the government Childcare Subsidy works and whether you may be eligible for it.
So what is the Childcare Subsidy?
Childcare Subsidy is a payment that is designed to help whānau with the cost of childcare for children before they start school. It exists to help families afford childcare services so that they can work and/or provide for their health and wellbeing.
It's important to note that the Childcare Subsidy is not the same as 20 Hours ECE. For details of 20 Hours ECE, check out our article here
Families getting 20 hours Early Childhood Education (ECE) can't get the Childcare Subsidy for the same hours.
Who is it for?
You may be eligible for the Childcare Subsidy if you meet the following criteria:
You're the main caregiver of your child
You're a New Zealand citizen or permanent resident
Your whānau is on a low or middle income (see our table below for income thresholds), and
You normally live in New Zealand.
The amount of subsidy you can access depends on how much you and your partner earn and how many preschool children you have.
To be eligible, your child needs to be:
Aged either:
under 5, or
over 5 if they're going to a cohort entry school (where new entrants start together on a set date after they turn 5), or
under 6 if you get a Child Disability Allowance for them
attending an approved early childhood programme for 3 or more hours a week.
When it says "approved programmes", it means education and care services, kindergartens, playcentre, Kōhanga Reo, licensed and Homebased providers. In short, any of the childcare services you see on Kindello will fall within the approved programmes category.
The Ministry of Social Development (MSD) has created a handy guide to help you see if you are eligible for the Childcare Subsidy and it only takes about 5 minutes to complete. You can find this guide here.
How many hours of childcare are covered by the subsidy?
The number of hours you may receive the subsidy for depends on your current work, study or training status. This is because the subsidy is designed to provide increased assistance for those families that need childcare to support their ability to work or further upskill.
The Childcare Subsidy is normally paid for up to 9 hours of childcare a week if you're not working, studying or training.
However, if you're working, studying or training you may be able to get up to 50 hours a week.
Further criteria that may mean you are eligible include being:
Involved in an activity that Work and Income has asked you to do
A shift worker who works nights
Seriously ill or disabled
Caring for a child in hospital or for a child you get the Disability Allowance for.
In most cases you can't get the Childcare Subsidy for more than 9 hours a week if the child's other parent or caregiver can care for them.
How much subsidy can I get?
If you are eligible for the subsidy, the amount you can get is determined by three factors:
The number of preschool children you have
Your combined income
How many hours a week your child attends childcare
To help paint a picture of the actual subsidy levels, MSD has provided this useful table:
| Number of children | Gross weekly total household income before tax | Childcare Subsidy (per hour, per child) | Childcare Subsidy (per week, per child for 50 hours) | |
|---|---|---|---|---|
| One | Less than $800.00 | $5.37 | $268.50 | |
| One | $800.00 to $1,199.99 | $4.28 | $214.00 | |
| One | $1,200.00 to $1,299.99 | $2.99 | $149.50 | |
| One | $1,300.00 to $1,399.99 | $1.67 | $83.50 | |
| One | $1,400.00 or more | Nil | Nil | |
| Two | Less than $920.00 | $5.37 | $288.50 | |
| Two | $920.00 to $1,279.00 | $4.28 | $214.00 | |
| Two | $1,380.00 to $1,489.99 | $2.99 | $149.50 | |
| Two | $1,490.00 to $1,599.99 | $1.67 | $83.50 | |
| Two | $1,600.00 or more | Nil | Nil | |
| Three or more | Less than $1,030.00 | $5.37 | $288.50 | |
| Three or more | $1,030.00 to $1,539.00 | $4.28 | $214.00 | |
| Three or more | $1,540.00 to $1,669.99 | $2.99 | $149.50 | |
| Three or more | $1,670.00 to $1,799.99 | $1.67 | $83.50 | |
| Three or more | $1,800.00 or more | Nil | Nil |
How and when do I apply for the Childcare Subsidy?
Ideally, you'll want to start the application process a few weeks before your child is due to start childcare. That means if you're currently searching your childcare option on Kindello, it's the perfect time to get your Childcare Subsidy application completed - if you think you may be eligible.
To make it easy to apply, you can find a copy of the application form here
The childcare service that you choose will also need to complete part of the application form, so we suggest getting your part done and ready for your childcare provider when you enroll.
MSD says that they “can grant you the financial assistance you're entitled to from the date you first contact us, or the date your childcare started, whichever is later, if you complete your application within 20 working days of that date.”
Summary
You may be eligible for the Childcare Subsidy for greater than 9 hours per week if you:
Have a child under 5 years of age
Are in the lower or middle income bands and
Are working, studying or in training
The amount of subsidy depends on:
The number of preschool children you have
Your combined income
How many hours a week your child attends childcare
To check whether you are eligible, you should visit
It's best to apply for the subsidy before you start at a childcare service and the forms you need can be found here
Thanks to The Ministry of Social Development for this Childcare Subsidy information. If you require further information, please visit
