Family Resources

The Child Care Subsidy (CCS) is a Government package which has been implemented to assist families with the cost of Early Childhood Education and Care.

Child Care Subsidy

The Child Care Subsidy (CCS) is a Government package which has been implemented to assist families with the cost of Early Childhood Education and Care. The introduction of the CCS has made access for Australian families easier and more affordable, meaning more families have the financial assistance to benefit from the opportunities that Early Childhood Education and Care offers their children.

The Child Care Subsidy is paid directly to providers who then pass that fee reduction on to families. At Smarties Early Learning Centre, we provide our families and their children with access to our quality early learning programs. As a registered Childcare Provider, families enrolled at Smarties are eligible for the Child Care Subsidy benefits.

As of the 10th December 2021, the annual cap for all families has been removed, providing families with additional choices about work and care.

From 7th March 2022, families with more than one child aged 5 or under in care will get a higher Child Care Subsidy (CCS) for their second child and younger children.

The standard rate child will get the standard CCS rate. This is usually the eldest CCS-eligible child aged 5 or under in the family. Younger children will receive a 30% higher subsidy, capped at a maximum of 95%.

Families may be eligible if they:

  • earn less than $354,305
  • have more than one child aged 5 or under in childcare.

Families already getting CCS don’t need to do anything. Services Australia will automatically increase the CCS for eligible second and younger children.

Calculating Your CCS

There are three factors that determine the amount of Child Care Subsidy that
can be granted to your family:

  • Family Income – Family income refers to you, and your partner’s, combined taxable income for the entire financial year.
  • Activity test – Activity refers to activities you and your family undertake or exemptions that might apply. The least active family member, in terms of ‘recognised’ activity, will determine the calculation of your entitled CCS hours.
  • Service type – This is determined by the type of approved service you use and the age of your child.

Estimating your CCS Percentage
Your Child Care Subsidy percentage is calculated based on your combined family income. The table below shows the combined family income and the percentage your family may be entitled to;

Your family income Child Care Subsidy percentage
$0 to $70,015 85%
More than $70,015 to below $175,015 Between 85% and 50%
The percentage goes down by 1% for every $3,000 of income your family earns
$175,015 to below $254,305 50%
$254,305 to below $344,305 Between 50% and 20%
The percentage goes down by 1% for every $3,000 of income your family earns
$344,305 to below $354,305 20%
$354,305 or more 0%
What counts as “activity”?

The hours of CCS entitlement for each family are based on their recognised activity. In two parent families, the hours of care that a family is entitled to, is determined by the person with the lowest number of hours of activity per fortnight. Recognised activity can count as:

  • Paid work including being self-employed
  • Paid or unpaid leave, including paid or unpaid parental or maternity leave
  • Unpaid work in a family business
  • Unpaid work experience of unpaid internship
  • Actively setting up a business
  • Undertaking an approved course of education or study
  • Undertaking training to improve work skills or employment prospects
  • Actively looking for work
  • Volunteering
  • Other activities on a case-by-case basis

New hourly rate caps per family income
The hours of subsidised care you can access per fortnight applies to each child. There are four activity levels:

Your family income Child Care Subsidy percentage
Activity level each fortnight Hours of subsidised care each fortnight
Less than 8 hours 0 hours if you earn above $70,015 24 hours if you earn $70,015 or below
More than 8 to 16 hours 36 hours
More than 16 to 48 hours 72 hours
More than 48 hours 100 hours
Steps To Claim The Child Care Subsidy
  • Get ready to claim; The easiest way to claim is online.
    Ensure your MyGov account is set up, linked to Centrelink and ready to access.
  • Claim; Sign in to your MyGov and go to Centrelink. Select Make a claim under Families, then click Get Started. Answer all questions and follow the prompts. Each screen has information to assist in completing the claim. Then Submit your claim. You will need to create a separate claim for each eligible child.
  • Supply your Supporting documents; All of your supporting documents must be submitted in order to process the claim.
  • Track your claim; After submitting your claim online, you will be provided with a receipt. Keep these details readily available to be able to track your claim through your MyGov account.

For more in depth information; follow the link below to Centrelink website to make claim:
https://www.servicesaustralia.gov.au/centrelink-online-account-help-claim-child-care-subsidy