The Child Care Subsidy (CCS) is increasing from today. Most families using early childhood education and care will get more subsidy. More families are now eligible for CCS.
The CCS activity test has also changed for families with Aboriginal and/or Torres Strait Islander children.
What are the changes?
Today’s changes include:
- The family income limit to get CCS has increased to $530,000.
- The maximum amount of CCS has increased from 85% to 90%.
- Families earning $80,000 or less get a CCS rate of 90%.
- Families earning over $80,000 get a CCS rate that decreases by 1% for each $5,000 of family income. This rate reaches 0% for families earning $530,000.
- Families earning below $362,408 with more than one child aged 5 or under in care get a higher rate for their second and younger children.
- Families with an Aboriginal and/or Torres Strait Islander child in their care can get at least 36 hours of subsidised care per fortnight, regardless of their circumstances.
What do families need to do?
Families who already get CCS
Families already getting CCS don’t need to do anything to get the new rates. Services Australia is applying the changes automatically from today.
Families who are now eligible
Families who earn between $356,756 and $530,000 may now be entitled to CCS. Families can lodge a CCS claim with Services Australia.
Some families already using care may currently be assessed for CCS and get 0% but are now eligible for an increased rate. These families should check that their income estimate is up to date through their Centrelink online account.
Families with Aboriginal and/or Torres Strait Islander children
Families should tell Services Australia that they have an Aboriginal and/or Torres Strait Islander child in their care if they would like to get at least 36 hours of subsidised care.
Families can call Services Australia on the Centrelink families line to let them know a child in their care is an Aboriginal and/or Torres Strait Islander person. It is voluntary to tell Services Australia this.
A family’s CCS rate will continue to be based on their income.
Families may get more than 36 hours of CCS per fortnight based on their circumstances and the amount of recognised activity they do, this has not changed.
Families will still need to pay the gap fee.
What do providers need to do?
Providers don’t need to do anything to get the increased rate.
- continue submitting session reports accurately and on time
- tell families when the CCS changes will take effect with regard to their service’s billing practices.