The Child Care Subsidy (CCS) is the main way the Australian Government helps families with child care fees. Providers must be approved by the department to receive CCS on behalf of families.
On this page:
Changes to Child Care Subsidy
From 10 July 2023, CCS is changing. Most families using child care will get more subsidy. Some families previously not eligible for CCS will now get it.
Broadly, changes are:
- The maximum amount of CCS is increasing from 85% to 90%.
- Families earning $80,000 or less will 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 can still get a higher rate for their second and younger children.
Families can use the CCS Calculator on the Starting Blocks website to find out what their future rates may be. Families can get more information on the Services Australia website.
Providers can help families understand what the changes mean for them. Do this by:
- printing and displaying a changes to CCS poster and changes to CCS fact sheet at your service
- sharing social media with your families using the changes to CCS kit
- telling your families when the CCS changes will take effect with regard to your service’s billing practices.
Providers can learn more on our family eligibility and entitlement page.
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What changes mean for families
Family eligibility and entitlement
Families must meet eligibility criteria to get CCS.
The amount of CCS a family can get depends on their circumstances.
Services Australia looks at:
- a family’s income
- how many children a family has in care
- the age of the children in care
- a family’s activity level
- the type of care a family uses.
Learn about family eligibility and entitlement
Become an approved provider
You must be approved to operate a service and administer CCS. You need approval from:
- your state or territory government, and
- the Australian Government.
Apply to become an approved provider
Approved care types
There are 4 care types that can administer CCS:
- Centre Based Day Care
- Outside School Hours Care
- Family Day Care
- In Home Care.
Learn about the approved care types
Access the Child Care Subsidy System
The Child Care Subsidy System (CCSS) is the online system we use to administer CCS payments. It holds records like enrolments and session reports. This information is used to calculate payments for families.
It is also where you perform a range of mandatory obligations and tasks.
Learn about how to access the CCSS
All children who attend care must be enrolled or have an arrangement for care. Children who get CCS must have the right enrolment in place for payments to be made.
Learn about enrolling children
Reporting sessions of care
Once a child is enrolled, you must report sessions of care to the government. Services Australia uses this information to calculate and process CCS payments. You must provide accurate session reports on time – it’s the law.
Learn about reporting sessions of care
Families can get CCS when their child can’t attend care up to 42 days each year. They may get extra absences in certain circumstances.
Payments and fees
From 1 July 2023, families using child care must pay the gap fee using electronic means. Learn about changes to gap fee payments.
CCS is generally paid to providers who pass it on to families as a fee reduction. Families must make a co-contribution by paying the gap fee. Providers must report fee information to the government.
Understanding overpayments and debts
You may sometimes receive more CCS than you're entitled to. We also issue debt notices in certain circumstances. There are simple ways to avoid overpayments and debts.
Learn about overpayments and debt
Services Australia balances CCS payments after each financial year to ensure families are paid the right amount. The balancing process is a matter between families and Services Australia.