The Child Care Subsidy

The Federal Government helps families with the cost of childcare through the Child Care Subsidy and Additional Child Care Subsidy. How much you receive is dependant on your individual and family circumstances.

Your CCS is calculated using three components:

1.      Your combined family income

2.      Your level of ‘activity’

3.      Your childcare provider’s hourly rate

Your Combined Family Income 

Your family’s combined income will help determine the CCS percentage you’re entitled to.   Remember, you will need to contact Centrelink when your combined income increases or decreases – this can be done at any time through your Centrelink online account through myGov or the Express Plus Centrelink mobile app.

*These amounts are correct for 2023-4 (from 12 July 2023) and may be adjusted according to CPI.

Your Level of Activity

CCS is linked to how much a family contributes to the Australian economy through activity – both paid and unpaid. This activity level is calculated from the parent with the lowest number of hours of activity per fortnight.

What counts as activity? 

·         Paid work (including all-time between drop off at the centre and pick up at centre, commute time, lunch breaks etc)

·         All types of work across all jobs/employers

·         Authorised leave (e.g. maternity leave, long service leave, annual leave)

·         Unpaid leave of up to 6 months

·         Unpaid work in a family business

·         Time spent setting up a business that has not yet started to operate

·         Training and study (including additional study outside scheduled hours, holiday and non-class periods)

·         Work experience/internships (paid or unpaid)

·         Volunteering

·         Looking for work (including contacting employers, preparing resumes and letters of application, preparing for and attending job interviews etc)

Exemptions to the ‘Activity Test’ 

There are some exemptions to the activity test.

1.      Universal Access: 4 -year-old Pre-school programs.  If a child attends an early educational program at a childcare centre in the year that is 2 years before Grade 1 of school (ie a preschool or kindergarten program), they are entitled to up to 36 hours of care per fortnight, irrespective of their parent’s activity

2.      Low-Income Families.  If a family earns less than $80,000 with no activity, then they are entitled to 24 hours per fortnight.

3.      Individuals on  Income  Support will automatically qualify for 36 hours of activity per fortnight, plus any other recognised activity (e.g. volunteering, studying etc)

4.       Individuals receiving Carer’s  Allowance will automatically qualify for the higher of:

·         72 hours of activity per fortnight, or

·         The actual time spent caring plus any other form of recognised activity

How can I get the most out of the CCS?

To discuss your individual circumstances and how they relate to your CCS entitlements, please contact your friendly Customer Care Team on 0434 869 035. They will be able to assist you with any questions or concerns you may have.

Things to consider:

·         Have your circumstances changed?  For example, if your income level or contact information has changed, you should update your details with Centrelink as soon as possible. This can be done through your Centrelink online account through myGov or the Express Plus Centrelink mobile app.

·         New to childcare?  You should put in a claim for CCS as soon as possible. Claims for CCS can only be backdated for up to 28 days from the day the claim is lodged, so the sooner you act, the better it will be for your back pocket.

quently Asked Questions- CCS

What determines my level of child care subsidy?

The subsidy you’re entitled to will depend on your individual circumstances. Your CCS is calculated using three components:

1.      Your combined family income

2.      Your level of ‘activity’

3.      Your childcare provider’s hourly rate

You can estimate your likely out of pockets costs using this simple Child Care Subsidy Calculator.

How much does centrelink pay per child?

Again, this depends on your circumstances, including your family income, your level of activity and your chosen childcare provider’s hourly rate. To discuss your individual circumstances and how they relate to your CCS entitlements, please contact your Customer Care Team on 8595 7939. They will be able to assist you with any questions or concerns you may have.

Why does the government provide subsidies for childcare?

The government provides financial assistance to families to help cover the cost of childcare. This eases out of pocket costs depending on how much a family earns and allows parents to return to work and for children to be exposed to high-quality early childhood care and education, which has many proven benefits for child development.

The Child Care Subsidy is provides higher levels of financial support to the families who earn the least, in order to make the process of returning to work less financially difficult. More importantly, this initiative gives your child an opportunity to take advantage of the benefits of an early childhood education. Family life is busy – in between juggling work and family life, there’s not a lot of time left to catch up on legislative changes, so we’ve outlined them for you.

The system is income and ‘activity-based’, giving families access to either 36, 72 or 100 hours of subsidised care per fortnight, based on the hours of combined work, training or study undertaken.

How do I claim the CCS?

The easiest way to decide how to make a claim is by visiting the Services Australia website.

Am I eligible for the CCS?

To get Child Care Subsidy (CCS) you must:

·         care for a child 13 or younger who’s not attending secondary school, unless an exemption applies

·         use an approved child care service

·         be responsible for paying the child care fees

·         meet residency and immunisation requirements.

How much am I entitled to claim through the CCS?

This will depend on your individual circumstances. You can estimate your likely out of pockets costs using our simple Child Care Subsidy Calculator.