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Increase in Child Care Subsidy

The Child Care Subsidy (CCS) has increased. Most families using early childhood education and care (ECEC) will get more subsidy and more families are also now eligible for CCS.

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 already getting CCS don’t need to do anything to get the new rates. Services Australia is applying the changes automatically.

  • Families who earn between $356,756 and $530,000 may now be entitled to CCS. These 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 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.

  • Families do not need to do anything if they already get more than 36 hours of subsidy based on their circumstances.

Facts from Family Assistance Law

Avoid common enrolment mistakes

You must enrol children correctly so families can get CCS. Below are some common mistakes to avoid when enrolling children.

  • Families should make a CCS claim first Families should lodge a CCS claim before their child starts at your service. If a child starts at your service before the family has lodged a claim, or while their claim is being assessed, you must charge full fees. If the family is assessed as eligible, any backdated CCS will be paid directly to the family.

  • Use the correct enrolment type Except in very limited circumstances, children must be enrolled under a Complying Written Arrangement to get CCS payments.

  • Identify the person who made the CCS claim Enrolment notices must identify the person who made the CCS claim. If you don’t identify this person, Services Australia cannot make CCS payments.

  • Families must confirm the enrolment Once you’ve submitted an enrolment, the family must confirm the details via their Centrelink online account. Services Australia cannot make CCS payments until the enrolment is confirmed. Read more about enrolling children.

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