Unpacking the
Child Care Subsidy
Understanding the Child Care Subsidy (CCS) Support
Funded by the Federal government and administered through Centrelink via myGov; the Child Care Subsidy (CCS) program helps make childcare affordable to parents/carers returning to work or study by reducing their out-of-pocket care expenses.
We Are Here To Make Things Easy
Our purpose is to ensure our families have all the information at their fingertips. We know how confusing all this can be for parents, especially when enrolling a child for the first time, however we are here to guide you through every step.
Our experienced team will help you to attain your full entitlements whilst reducing the stress and confusion that can come from navigating the different online Government agencies of myGov, Centrelink and the CCS.
Rest assured, we have listed below the steps you will need to take enabling you claim the CCS well in advance of your desired start date for childcare or kindergarten, as the process may take some time.
Remember, our team is always available to assist so feel free to contact us at any time to chat.
How Does It Work?
The Child Care Subsidy (CCS) payment is to reduce the cost of your childcare/kindergarten fees. Without the CCS all childcare centres and kindergarten will charge you a full daily fee.
The CCS program is means-tested, which implies families with lower incomes will receive greater support payments than families with higher incomes.
Want to learn more about the CCS program?
Below we have provided general information however we know how challenging it can be to understand. You can contact us directly to discuss your specific situation.
Are You Eligible for the Child care subsidy?
To be eligible:
- You or your partner care for a child, aged 13 or younger who is not attending secondary school (exemptions apply for children with disabilities)
- You or your partner care for a child at least 2 nights per fortnight, or have 14% care responsibility
- You or your partner are responsible for paying the childcare fees
- The child meets residency and immunisation requirements – if receiving Family Tax B – Part A or child care fee assistance
- You use an approved childcare service; approved centres offer both long daycare and occasional care – like us!
We are here to assist you with the subsidy assessment that is based on these factors:
- Your combined family’s income.
- Your activities and the Hours of Activity you and your partner do
You will receive a percentage subsidy on the daily rate of childcare/kindergarten (fees subsidised up to 85%) plus a total number of hours for which you will be subsidised (up to 100 hours per fortnight.)
To meet the activities test, parents can be involved in a variety of paid or unpaid work.
These include:
- Paid work, including leave
- Self-employment, including starting a new business
- Voluntary work
- Training for employment upskilling
- Tertiary study or apprenticeships
- Job seeking
- Paid parental leave
How Much of My Child Care Fees Will the Subsidy Cover?
It’s great to know what your child care centre charges for a day, but what you really need to know – for family finance purposes – is what you’ll need to pay out of pocket
The Department of Education has set out a table of the percentage the Child Care Subsidy will contribute towards based on the family’s combined income.
| Your Family Income | Child Care Subsidy Percentage |
| $0 – $70,015 | 85% |
| More than $70,015 to below $175,015 | Between 85% and 50% The percentage goes down by 1% for every $3,000 of income your family earns |
| $175,015 to below $254,305 | 50% |
| $254,305 to below $344,305 | Between 50% and 20% The percentage goes down by 1% for every $3,000 of income your family earns |
| $344,305 to below $354,305 | 20% |
| $354,305 or more | 0% |
Little Learners can help you work through this process to best optimise your subsidy. Please make an appointment to discuss this with us.
Child Care Subsidy Activities Test
The maximum entitled hours of subsidised care available is 100 hours per fortnight. In two-parent households, an activities test will be applied. The parent with the lowest hours of work or approved activity will determine how much subsidised care the family is entitled to.
| Step | Hours of Activity per Fortnight | Max NO. of Hours of Subsidy per Child per Fortnight |
| 1 | Less than 8 hours | 0 hours if you earn above $69,390 24 hours if you ear $69,390 or below |
| 2 | More than 8 – 16 hours | 36 hours |
| 3 | More than 16-48 hours | 72 hours |
| 4 | More than 48 hours | 100 hours |
Bonus Tip:
Make sure you download the Centrelink app, which can be very helpful, especially if your work situation is changing and you need to update your hours.
Flexible Hours
We understand that when it comes to early childhood education and care there isn’t a one-size-fits-all option. That’s why we give families the freedom to choose which hours best suit their needs.
At Little Learners we help you to minimise your costs and maximise your entitlements thereby providing greater access to quality early childhood education and care for your family.
Child Care Subsidy Changes with Sibilings
Families with more than one child aged 5 or under in care can get a higher Child Care Subsidy. The higher subsidy is for their second child and/or younger child.
To get the higher subsidy, a family must:
- earn less than $354,305
- have more than one child aged 5 or under in child care.
The subsidy for the second and/or young child can get a 30% higher subsidy, up to a maximumof 95%.
To discuss ensuring you receive your full CCS entitlement for more than one child contact us today.
How to Receive the Child Care Subsidy?
To apply for Child Care Subsidy
Step 1. Apply for a CRN number – Click Here
Step 2. Sign in to MyGov and either Create an Account or
Step 3. Link MyGov and Centrelink together (explanation link is here)
Once you have a myGov account and it is linked to your Centrelink you will receive a CRN number.
How to make a CCS claim
Click here to be guided through making a CCS claim by pressing the black ‘Start‘ button.
Remember, Little Learners can help you work through this process to best optimise your subsidy. Please make an appointment to discuss this with us.
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