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Introducing the Child Care Subsidy: What it Means for You

The Child Care Subsidy (CCS) is a program designed to reduce childcare expenses for eligible families. By providing financial support, it enables children to benefit from quality care, ensuring they receive the best possible start in life. Your CCS rate is determined as a percentage based on various factors, including your family’s income, your child’s age, and your family’s paid and unpaid activities, such as your job or volunteer work.

Learn more about the CCS

Starting from 10th July, several changes have been implemented that may have a positive impact on your family. Some families may now be eligible for the CCS for the first time, even if they already have a child in care. Additionally, certain families could receive a higher CCS rate, offering increased financial assistance.

Let’s take a look at the changes:

1.Increased Family Income Threshold:

The family income threshold has been raised from $356,756 to $530,000. This expansion allows more families to access subsidized childcare.

2.Enhanced Maximum CCS Rate for Low-Income Families:

Families earning up to $80,000 per year will now receive a maximum CCS rate of 90%, up from the previous 85%. This increase means a larger portion of childcare costs can be subsidized for eligible families.

3.Higher Rate for Families with Multiple Young Children:

If your combined income estimate is below $362,408 and you have more than one child aged 5 or under, you can still qualify for a higher rate of CCS for one or more of your children.

To better understand how these changes will affect your family, refer to the table below, which simplifies and breaks down the upcoming CCS modifications:

Current CCS Rates: Income Cap: $356,756 Low-income Threshold:

  • Maximum CCS: $72,466
  • CCS Rate: 85%

New CCS Rates from 10th July 2023: Income Cap: $530,000 Low-income Threshold:

  • Maximum CCS: $80,000
  • CCS Rate: 90%

What does this mean for my family?

If you are considering childcare, we strongly recommend applying for your CCS as soon as you have chosen a center to avoid any delays in receiving your subsidy. The increased CCS offers improved accessibility to quality care and education for your child. To estimate your out-of-pocket expenses and get a sense of how the subsidy will benefit you, you can use our simple CCS calculator, which currently utilizes the FY22/23 rates. Afterward, you can apply for the CCS through Services Australia.

Once your CCS application has been assessed, the changes effective from July 10th will be automatically applied to your subsidy.

For more information, visit servicesaustralia.gov.au/childcaresubsidy. If you have specific questions regarding your unique circumstances, please reach out to us. We understand that each family’s situation is different, and we are dedicated to ensuring your child receives the best care and education. We encourage you to visit our center and speak with a member of our team who can provide further assistance. We would be delighted to support you in any way we can.