Childcare Subsidy
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 of July 2023, the Child Care Subsidy changed. Most families using child care can now get more subsidy.
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.
The important information
Calculating Your CCS
The amount of Child Care Subsidy you can get depends on your circumstances. To determine how much CCS you’re eligible for, the following needs to be considered;
- 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.
- The Number of children in your care – You may get a higher Child Care Subsidy if you have more than one child aged 5 of younger in care.
Estimating your CCS Percentage
Your Child Care Subsidy percentage is calculated based on your combined family income estimate. The table below shows the combined family income and the percentage your family may be entitled to;
Standard CCS Rates
| Your family income | Child Care Subsidy percentage |
|---|---|
| $0 to $80,000 | 90% |
| More than $80,000 to below $530,000 | Between 90% and 0% The percentage goes down by 1% for every $5,000 of income your family earns above $80,000 |
| $530,000 or more | 0% |
You can still claim CCS even if your family income estimate is $530,000 or more. If you actually earn less than this, you may be paid the subsidy you’re entitled to at the end of the financial year when your payments are balanced.
If your family has more than one child aged 5 years or younger in care, you may get a higher Child Care Subsidy (CCS) for one of more of your children if all of these apply:
- you get or will be eligible for CCS
- your family’s combined income is under $362,408
- your family has more than one CCS eligible child aged 5, or younger.
If your family has more than one child aged 5 or under we’ll assess which children get a higher subsidy by working out both:
- the ‘standard rate child’
- the ‘higher rate child’ or the ‘higher rate children’.
The ‘standard rate child’ is usually your eldest CCS eligible child aged 5 or under. This child will get the ‘standard CCS percentage’
The ‘higher rate child’ is any CCS eligible child younger than your standard rate child. You’ll get a higher subsidy rate for them.
For children born on the same date, such as twins, we’ll automatically determine one child as the ‘standard rate child’. We’ll then apply a higher rate to other eligible children.
CCS Rates for Higher Rate children
| Your family income | Child Care Subsidy percentage |
|---|---|
| $0 to $138,118 | 95% |
| More than $138,118 to below $183,118 | Between 95% and 80% The percentage goes down by 1% for every $3,000 of income your family earns |
| $183,118 to below $262,408 |
80% |
| $262,408 to below $352,408 |
Between 80% and 50% The percentage goes down by 1% for every $3,000 of income your family earns |
| $352,408 to below $362,408 |
50% |
| $362,408or more | Higher CCS rates no longer apply, all children in the family will get the standard CCS rate |
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
Your activity level is based on the hours of recognised activities you do and the type of activity you’re undertaking. Your activity level is used to work our how many hours of subsidised care you are entitled to per fortnight.
If you have a partner, both of your activity levels, with the lower of you or your partner’s activity is used to determine your hours of subsidised care per fortnight.
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:
| activity level each fortnight | hours of subsidised care each fortnight |
|---|---|
| Less than 8 hours | 0 hours if you earn above $80,000 24 hours if you earn $80,000 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