Transition to Work Subsidy

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Part of the Additional Child Care Subsidies

The Transition to Work Subsidy is one of the three Additional Child Care Subsidies available under the new Child Care Package. The subsidy is designed to make child care more accessible for families who are transitioning from an income support payment into paid employment, further study, training or starting a business. Under the plan, eligible families can receive a subsidy of up to 95 per cent of the total fee charged for their child’s care. The Additional Child Care Subsidy (Transition to Work) is an important element of the new Child Care Package which came into effect on July 2, 2018. In this article, we explore the eligibility conditions and the application process for parents and carers making the transition to work.

Additional Child Care Subsidy (Transition to Work)

Who is eligible? The Department of Human Services sets out eligibility requirements for the Additional Child Care Subsidy. According to their requirements, you (or your partner) must meet one of the following criteria to be eligible for the Additional Child Care Subsidy (Transition to Work).
  • Be eligible for the Child Care Subsidy
  • Meet the Transition to Work requirements
  • Be within the time limit for each activity
  • Have a combined family income below $66,958
  • And have an active Job Plan if you don’t receive Austudy or ABSTUDY
You must also receive one of the following income support payments:
  • Parenting Payment
  • Newstart Allowance
  • Disability Support Pension
  • Youth Allowance
  • Carer Payment
  • Special Benefit
  • Austudy
  • Farm Household Allowance, or
  • A means-tested ABSTUDY payment

What are the transition to work activity requirements?

The Additional Care Subsidy (Transition to Work) is only available to those engaged in the approved transition to work activities, including studying, active job-seeking, training, or working. These activities must meet the following criteria to be eligible.
  • Study: You must be completing an approved course and making satisfactory progress toward completion of the course. The level of study must be higher than any study you have completed in the past 10 years unless the course is accredited for an occupation on the Skills Shortages list.
  • Job Seeking: You must be actively seeking and applying for work including searching for vacancies, preparing resumes and application letters, contacting potential employers or attending job interviews.
  • Training: You must be completing a vocational training course or another program which will improve job prospects, including rehabilitation, literacy or numeracy programs.
  • Working: You must be doing paid or unpaid work including work experience, an internship or volunteering, or actively setting up a business.

What support will be received?

Eligible parents and families under the Transition to Work Subsidy can access heavily subsidised child care for their children. The Department will pay the Subsidy direct to the approved care provider of your child. The amount paid will be the lower of:
  • 95% of the fee charged, when it is equal to or below the hourly rate cap, or
  • Up to 95% of the hourly rate cap, where the fee charged is above the hourly rate cap.
The duration you receive the subsidy for will depend on the length of time engaged in Transition to Work activities.
  • Study: You can receive the Subsidy for up to 104 weeks for full time study or 208 weeks for part time study at secondary, preparatory, Certificate, Diploma, Advanced Diploma, Bachelor Honours Degree, Graduate Certificate and Graduate Diploma level courses. Up to 156 weeks for full time and 312 weeks for part time is available to students of Bachelor Degrees.
  • Job Seeking: The Transition to Work subsidy is available for up to 26 weeks while actively engaged in job seeking.
  • Training: You can receive the Subsidy for up to 52 weeks for full time training or undergoing programs to improve employment prospects, or up to 104 weeks during part-time training.
  • Working: The Transition to Work subsidy is available for up to 26 weeks while engaged in an approved work activity.

How does one apply?

If you are eligible for the Additional Child Care Subsidy (Transition to Work) you can begin your application. The easiest way to apply is using your myGov account, linked to Centrelink. If you do not have a myGov account, you can register for one using your Customer Reference Number (CRN). If you have never received an income support payment and do not have a CRN, you can visit your nearest service centre for further assistance.

Supporting documents

Applicants are required to provide the department with supporting evidence within 14 days of making the application. The documents must demonstrate evidence of your job search activities, employment, studies or training. Evidence to support your application may include: Proof of enrolment, academic transcript, certificate of attainment, a letter from your training provider, program facilitator or employer, or records of job applications.

Application outcome

The Department of Human Services will contact you with the outcome of your application.

More information

A range of resources and tools are available to support families who are seeking child care while making the transition to work. Child care management software Xplor is just one of the tools available to help families stay connected with their children while they are in care. Your child’s educator can use the Xplor app to send real-time updates, photos and videos direct to your smartphone, as well as documenting attendance, milestones, medical records and more. Visit for more information.
Transition to Work Subsidy
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Transition to Work Subsidy
The Transition to Work Subsidy is one of the three Additional Child Care Subsidies available under the new Child Care Package.
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