As of 10th July 2023, the Commonwealth Government Child Care Subsidy (CCS) is making high-quality early education and care more affordable for Australian families. There are 2 important changes to CCS.
These exciting changes and how they could apply to your circumstances may be tricky to navigate. We are here to help you understand the changes and make the most of what your CCS entitlements could be.
Most families using early childhood education and care are entitled to more CCS, and some families previously not eligible for CCS will become eligible. There are also changes to the activity test for families caring for Aboriginal and Torres Strait Islander children. First Nations children will be eligible for at least 36 hours of subsidised care per fortnight.
Cheaper Child Care
What you need to know
- The maximum amount of CCS has increased from 85% to 90%. Families earning up to $80,000 will get the new maximum percentage of 90%.
- Families earning over $80,000 may get a subsidy starting from 90%. This will go down by 1% for each $5,000 of income they earn above $80,000. The CCS percentage you’re entitled to depends on your family’s income.
- The income limit for CCS has increased to $530,000.
Families with more than one child aged 5 or under
Families earning below $362,408 with more than one child aged 5 or under in care can get a higher rate of CCS for one or more of their children.
Additional Child Care Subsidy
Additional Child Care Subsidy is a top-up payment in addition to the Child Care Subsidy which will provide targeted additional fee assistance to families and children who need extra support.
From 10th July 2023, the low-income limit for ACCS Transition to Work (TTW) increased to $80,000. You will still need to meet other ACCS TTW eligibility requirements.
Additional Child Care Subsidy has four elements:
- Child wellbeing
- Grandparents
- Temporary financial hardship
- Transition to work.
What you need to do
In most cases, you don’t need to do anything to get the increased rate.
Updating your family income estimate
The amount of CCS you get is calculated using your family income estimate. It’s important to make sure that you check your income estimate regularly and update it if your circumstances change.
If you get CCS or if you’re already assessed for CCS but get 0%, you may be entitled to an increased rate. Check your family income estimate is up to date so you get the right amount from 10th July 2023.
You can check or update your income estimate at any time using:
• your Centrelink online account through my.gov.au
• the Express Plus Centrelink mobile app
• the myGov app.
Making a claim for CCS
From 10th July 2023, the income limit for CCS increased to $530,000. This means that more families will be entitled to CCS to reduce their childcare costs.
If you want to check your eligibility for CCS, you can make a claim using your Centrelink online account through myGov or your Express Plus Centrelink mobile app.
You can make a claim for CCS at any time using:
• your Centrelink online account through my.gov.au
• the Express Plus Centrelink mobile app
• The myGov app
Activity test changes for Aboriginal and Torres Strait Islander children
What you need to know
- As of 10th July 2023, First Nations children will be eligible for at least 36 hours of subsidised care per fortnight, regardless of the amount of recognised activity you do.
- Families will still pay an out-of-pocket cost to their childcare service depending on their CCS percentage.
- Families may get more than 36 hours of subsidy per fortnight based on their circumstances and the amount of recognised activity they do.
Preschool Exemption Program
If your child is currently enrolled in our government-approved preschool or Kindergarten programs, this comes with a CCS exemption that is available for preschool-aged children, whose subsidy is less than 24 hours per fortnight. You can access 36 hours of subsidised care per fortnight if you:
- Would usually be entitled to less than 36 hours of subsidised childcare per fortnight because you do not meet the activity test; and
- Have a preschool-aged child attending an early education program at a centre-based daycare service.
A preschool-aged child is one who is in the year before primary school e.g. if a child is starting school in February 2021, the child is deemed preschool-aged from February 2020.
From 10 July 2023, here is how much you can expect to get covered, on
average
Work out your estimated out-of-pocket costs by combined annual income
Still need help?
Our team is always available to assist. Feel free to contact us anytime for any clarifications!
Disclaimer
The subsidy you will receive and any applicable cap will depend upon your own personal circumstances and is subject to your combined family income, hours of recognised activity and child care details. For more information visit The Department of Education’s website or get help making a claim online via the Centrelink website.