Government Child Care Subsidy

The Child Care Subsidy (CCS) can help reduce the cost of the fees you pay.

 

The amount of CCS that you can receive depends on:

 

The above information is taken from the Australian Government Education website. For further information, please visit their website here.

 

This Calculator may help you to estimate the possible Child Care Subsidy amount from the Australian Government and out-of-pocket child care costs.

Combined family income

Your family’s combined income will determine the CCS percentage that you’re entitled to.

You will need to contact Centrelink when your combined income increases or decreases.

More information can be found here.

 

Standard CCS Rate Thresholds

 

Combined Family income
CCS %
Up to $83,280 90%
More than $83,280 to below $533,280 Decreasing to 0%* 
Subsidy decreases by 1% for each $5,000 of family income.
$533,280 or more 0%

 

Higher CCS Rate Thresholds

Families with multiple children aged 5 or under who are CCS-eligible may receive a higher CCS rate for their second and younger children.
This higher rate is up to a maximum rate of 95%.
Families will continue to receive the standard CCS rate for all other children.

 

Combined Family income
CCS %
Up to $141,321 95%
More than $141,321 to below $186,321 Decreasing to 80% by 1% for each $3,000 of family income
$186,321 to below $265,611 80%
$265,611 to below $355,611 Decreasing to 50% by 1% for each $3,000 of family income
$355,611 to below $365,611 50%
$365,611 or more Higher CCS rates no longer apply, all children in the family receive the standard CCS rate

 

Every financial year, these tax brackets will be adjusted as per CPI.

 

 

Level of activity

CCS relates to how much activity a family contributes to the Australian economy . This activity level is based on the parent with the lowest number of hours of activity.

 

Hours of activity (per fortnight)
Maximum number of hours of subsidy (per fortnight)
Less than 8 hours 0 hours if you earn above $83,280
24 hours if you earn $83,280 or below
8 hours to 16 hours 36 hours
16 hours to 48 hours 72 hours
More than 48 hours 100 hours

 

What counts as activity?

Under the new system, you must be doing suitable activity to access the Child Care Subsidy.  The amount of activity then determines how many hours of Childcare Subsidy you are eligible for.

 

Activity includes:

  • Paid work (including unpaid lunch breaks)
  • Commute time from childcare centre to work (excludes time travelling form home to childcare centre and vice versa)
  • Authorised leave (eg maternity leave, long service leave, annual leave etc)
  • Unpaid leave of up to 6 months
  • Unpaid work in a family business
  • Setting up a new business
  • Study
  • Training and study (includes semester breaks)
  • Work experience/internships (whether paid or not)
  • Volunteering
  • Looking for work (eg internet research, contacting employers, preparing resumes/letters of application, preparing for and attending job interviews, travel time for interviews)

 

What if you don't have enough activity?

 

Some families may see a reduction in childcare funding support as a result of the activity test. However, do note that:

  • Activity is based on the family’s estimate over a thirteen week period
  • For casual/contract/itinerant workers whose hours may vary from week to week, you should pick the week with the highest level of activity in the thirteen week period and use that as your level of activity
  • You can go onto myGov and change your activity level at any time
  • While you do not have to verify your activity, the Government mentions that it will look to audit approximately 10% of families each year and seek verification that the activity is valid
  • Families earning less than $82,280 are exempt from activity tests for up to 24 hours care per fortnight