Child Care Subsidy

What is the Child Care Subsidy?
Introduced on 2nd July 2018 the Child Care Subsidy (CCS) is how the Government provides assistance to families for the cost of child care. ^

A family’s level of Child Care Subsidy is determined using the following factors:
•   Combined Family Income
•   Activity Test
•   Service Type

The CCS is paid directly to your provider and will be passed on to you as a fee reduction.

Qualifying criteria for entitlements:
•   Your child attends an approved child care service
•   Your child must be 13 or under and not attending secondary school
•   Your child meets government immunisation requirements
•   You are an Australian resident or holder of a qualifying visa
•   You are either working, looking for work, training or studying

1 – Combined Family Income
Families combined annual income will affect the entitlements they qualify for.
Families will be entitled to between 85% and 20% subsidy rate if their combined annual income is under $351,248.

2 – Activity Test
In two parent families both parents, unless exempt must meet the activity test per fortnight.
If both parents meet different levels, the parents with the lowest activity level will determine the hours of entitled CCS.

1.   0 to 8 hours of activity* will be entitled to a maximum of 24 hours of CCS*
2.   8 to 16 hours of activity* will be entitled to a maximum of 36 hours of CCS*
3.   16 to 48 hours of activity* will be entitled to a maximum of 72 hours of CCS*
4.   More than 48 hours of activity* will be entitled to a maximum 100 hours of CCS*
* Per fortnight

3 – Service Type
The maximum hourly rate the Government will subsidise for Outside School Hours Care (Before, After and Vacation Care) is capped at $10.29 per hour.

Additional Information
To ensure you don’t miss out on your entitlements, please read about the changes below and contact Centrelink as needed.

Extend has prepared a helpful guide on the changes and requirements of the new CCS. Understanding the Child Care Subsidy with Extend

Visit the Government’s CCS estimator to assess your CCS entitlement.
CCS Estimator

More details about the system can be found here.

^ These amounts are correct for 2018/2019 and may be subject to adjustment through indexation in subsequent years.