The government has announced it will fund a two-year pilot program to extend childcare subsidies to home care services provided by nannies.

The two-year pilot programme will determine whether a more sustainable programme can be affordably put in place for in-home care nanny services, including necessary integrity measures and quality standards.

The government will be working with employee organisations such as police associations, and other key stakeholders to establish the programme and identify participants in the pilot scheme which will commence in January 2016.

Government assistance will be provided by way of an hourly subsidy to be paid per child towards the cost of using a nanny. The subsidy will be paid directly to services and will be adjusted according to family income.

The government’s announcement follows the Productivity Commission Report into Childcare and Early Childhood Learning which recommended nannies be an eligible service for government assistance to families. The Commission found that for some parents, particularly those undertaking shift work such as nurses, police and emergency service personnel, nannies are used because working arrangements do not fit within standard operating hours of long or family day care. This is also the case for families in regional and rural Australia.

Families and service providers will be able to apply for the pilot later this year and must meet approved guidelines.

Only families on incomes below $250,000 per year will be eligible for support. The total subsidy paid to a family also cannot exceed the amount paid to a nanny.

The pilot will commence on 1 January 2016 and run until 31 December 2017.

This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of your specific circumstances.