Childcare cost income exemption

There is an additional $20 per week income exemption (as at 1 April 2026) for all young people getting Young Parent Payment when they have to pay childcare costs while they are working. It is not limited to sole parent clients.

It is not necessary for the child to attend an approved childcare centre, private arrangements can be accepted.

However, eligibility to Guaranteed Childcare Assistance Payment, Childcare Subsidy or OSCAR must be assessed first. If the total cost of childcare is not covered by the subsidy the client can receive the additional income exemption.

The exemption would be the lesser of:

• $20 per week or
• the cost of childcare not covered by a subsidy

The exemption only applies for the weeks the young person pays for childcare while they are working.