Child Care Subsidy explained

On 10 July 2023, the Commonwealth Government Child Care Subsidy (CCS) made high-quality early education and care more affordable for Australian families.

These exciting changes and how they could apply to your circumstances may be tricky to navigate. We are here to help you understand the changes and make the most of what your CCS entitlements could be.

Key changes

• If your family earns less than $80,000 per year, your Child Care Subsidy rates will increase from 85% to 90%.
• If your family earns under $530,000 per year, you’ll now be eligible to receive Child Care Subsidy rates.
• Your Child Care Subsidy rates will decrease 1% for every additional $5,000 earned over $80,000.
• Families with more than one child aged 5 or under can still get a higher rate for their second and younger children.
• First Nations children will be eligible for at least 36 hours of subsidised care per fortnight.
• Families can get more subsidised hours based on their circumstances.

The Child Care Subsidy: Explained by our Greenwood team

Am I eligible?

You may be eligible for the Child Care Subsidy if you meet a number of factors. Check out our video for the full explainer.

Types of approved activity, Government activity test

Until 9 July 2023, here is how much you can expect to get covered, on average

Subsidy by combined annual income

*Based on eldest or only child. Families with more than one child may be eligible for a higher subsidy for their second child and younger children.

*The $12.74 hourly cap applied above is a 2022 figure and is subject to change with the Commonwealth Government's announcement of the 2024 CCS hourly cap changes.

To read more about combined annual income and the annual cap, click here for further information from education.gov.au.

From 10 July 2023, here is how much you can expect to get covered, on average

Work out your estimated out-of-pocket costs by combined annual income

*Based on eldest or only child. Families with more than one child may be eligible for a higher subsidy for their second child and younger children.

*The $12.74 hourly cap applied above is a 2022 figure and is subject to change with the Commonwealth Government's announcement of the 2024 CCS hourly cap changes.

To read more about combined annual income and the annual cap, click here for further information from education.gov.au.

Preschool Exemption Program

If your child is currently enrolled in our Government Approved Preschool or Kindergarten programs, this comes with a CCS exemption that is available for preschool-aged children, whose subsidy is less than 24 hours per fortnight. You can access 36 hours of subsidised care per fortnight if you:

• Would usually be entitled to less than 36 hours of subsidised child care per fortnight because you do not meet the activity test; and
• Have a preschool-aged child attending an early education program at a centre-based day care service.

A preschool-aged child is one who is in the year before primary school e.g. if a child is starting school in February 2021, the child is deemed preschool-aged from February 2020.

The Additional Child Care Subsidy

The Additional Child Care Subsidy is a top-up payment in addition to the Child Care Subsidy which will provide targeted additional fee assistance to families and children who need extra support.

Please note that the Additional Child Care Subsidy is a top up payment in addition to the Child Care Subsidy which will provide targeted additional fee assistance to families and children who need extra support.

The Additional Child Care Subsidy has four elements:

• Child wellbeing
• Grandparents
• Temporary financial hardship
• Transition to work.

Find out more about the Additional Child Care Subsidy here.

Still need help?

Rest assured that our team is always available to assist. Feel free to contact us anytime to chat more, and we look forward to welcoming you in centre.

Disclaimer

The subsidy you will receive and any applicable cap will depend upon your own personal circumstances and is subject to your combined family income, hours of recognised activity and child care details. Even if you are currently receiving the Child Care Benefit or Child Care Rebate, you will need to update your details through your Centrelink account on MyGov. For more information visit The Department of Education’s website.