WHAT IS CHILD CARE SUBISDY AND HOW DOES IT HELP YOU?

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.

A Child Care Subsidy claim can be backdated up to 28 days.

Keep in mind, you can’t make a lump sum claim for Child Care Subsidy.

Before you start, check if you’re eligible for Child Care Subsidy.

How much you can get

The amount of Child Care Subsidy you can get depends on your circumstances.

To work out how much CCS you’re eligible for Centrelink look at all of the following:

• your family’s income
• the hourly rate cap based on the type of approved child care you use and your child’s age
• the hours of activity you and your partner do
• the number of children in your care.

If you have a CCS overpayment, Centrelink may use some of your CCS each fortnight to pay this back.

What you need to know from July

From 10 July 2023, Child Care Subsidy increased which means most families using child care now get more subsidy.

The maximum amount of CCS increased from 85% to 90% for families earning up to $80,000.

Families earning over $80,000 and under $530,000 may get a subsidy starting from 90%. Depending on their income, the subsidy will go down by 1% for each $5,000 of income they earn.

If you get CCS, you can see your new rate using your online account through myGov or Express Plus Centrelink app. You don’t need to do anything to get the increased rate.

The income limit for CCS also increased from $356,756 to $530,000.

Family income

Centrelink work out your Child Care Subsidy (CCS) percentage using your family income estimate.

Your CCS percentage applies to either your hourly fee or the relevant hourly rate cap, whichever is lower.

Centelink pay this directly to your child care service to reduce the fees you pay.

Use the Child Care Subsidy calculator on the Starting Blocks website to see what you may be eligible for.

If you have more than one child aged 5 or younger, you may get a higher rate for one or more of your children.

You can still claim CCS even if your family income estimate is $530,000 or more. If you actually earn less than this, Centrelink pay you the subsidy you’re entitled to. Centrelink do this when we balance your payments at the end of the financial year.

For more information please visit

https://www.servicesaustralia.gov.au/child-care-subsidy