Our Guide To The Australian Child Care Subsidy
- The Green Elephant
- Oct 12, 2020
- 5 min read
Updated: Feb 1
In a rush? Here's a quick rundown.
The Child Care Subsidy (CCS) is paid directly by the Australian Government to your childcare provider, reducing the amount you pay out of pocket.
Eligibility requires your child to be 13 or younger, attending an approved service, and you must meet residency, activity, and income requirements.
Support is calculated based on family income (up to 85% for families earning under $69,390), activity hours, and the type of childcare service used.
To apply, set up a myGov account linked to Centrelink, gather supporting documents, and complete the online claim process.
The Australian Child Care Subsidy is a financial support program designed to reduce the costs of childcare for families. Understanding how it works can help you plan your budget and make informed decisions about childcare.
With this guide, you'll be ready to complete your application in no time.
What Is the Child Care Subsidy?
The Child Care Subsidy (CCS) is a government payment that helps families with the cost of approved childcare. Unlike older childcare benefits, the CCS is paid directly to your childcare provider, reducing the fees you pay.
Key features of the CCS:
Paid directly to your approved childcare provider
You pay only the remaining balance (the "gap fee")
Designed to help working families access quality childcare
Available for both single and two-parent households
Calculated based on your individual family circumstances
The subsidy is designed to make childcare more affordable so parents can return to work, study, or undertake other recognised activities.
Are You Eligible?
To receive the Child Care Subsidy, you'll need to meet several requirements.
Child Requirements
Your child must:
Be 13 years or younger
Not be attending secondary school
Be attending an approved childcare service
Meet immunisation requirements
Exemptions exist for children who require extra supervision, as well as teenagers under 18 with a registered disability.
Parent/Guardian Requirements
As a parent or guardian, you must:
Be responsible for your child's care for at least 2 nights in every 14 (or a minimum of 14% of total care)
Be liable for the childcare costs
Use an approved childcare facility
Live in Australia with citizenship, a permanent visa, Special Category visa, or Partner Provisional visa
Additional Child Care Subsidy
The Australian Government additionally offers an Additional Child Care Subsidy (ACCS) for:
Grandparents who are primary carers
Families experiencing temporary financial hardship
Families transitioning to work
Children at risk of serious abuse or neglect
If you think you may qualify for additional support, speak with Centrelink about your circumstances.
How Much Support Can You Receive?
Rather than offering a set amount to all families, the Child Care Subsidy is calculated on a case-by-case basis. Several factors determine how much support you're entitled to.
Family Income
Household income is the most significant factor in the calculation.
Income thresholds and subsidy percentages:
Families earning under $69,390 can receive up to 85% of childcare costs
The percentage decreases as earnings increase
Families earning under $353,680 can receive at least 20%
The higher your family income, the lower your subsidy percentage — but most working families qualify for some level of support.
Hourly Rate Cap
The Government pays up to a maximum hourly rate for each type of care:
Centre-based care: $12.20 per hour
Family Day Care: $11.30 per hour
Outside School Hours Care: $10.67 per hour
In-home care: $33.17 per family
If your childcare fees exceed these caps, you'll pay the difference plus your gap fee.
Activity Test
To receive the subsidy, you must complete an approved activity. Recognised activities include:
Paid employment
Self-employment or running a business
Unpaid work in a family business
Job searching or setting up a business
Study or training courses
Volunteering
Other activities recognised by Centrelink
Activity hours determine your subsidised care hours:
Weekly Activity Hours | Subsidised Care Hours |
8-16 hours | 36 hours per fortnight |
16-48 hours | 72 hours per fortnight |
48+ hours | 100 hours per fortnight |
Parents with a disability, illness, or caring responsibilities may be exempt from the activity test.
How to Apply for the Child Care Subsidy
If you believe you're eligible, follow these steps to make a claim.
Step 1: Set Up myGov
Create a myGov account if you don't already have one, and link it to Centrelink. This is where you'll manage your claim.
Step 2: Confirm Your Identity
You'll need to verify your identity through Centrelink before you can submit a claim.
Step 3: Gather Supporting Documents
Prepare the necessary documentation, including:
Financial information (income details, tax returns)
Employment or study confirmation
Relationship status information
Living arrangement details
Medical information (if relevant)
Childcare enrolment details
Step 4: Submit Your Claim
From myGov:
Navigate to Payment and Claims
Select Claims
Choose Make a claim
Select Families
Click Get started
Complete all information as prompted
Confirm and submit your claim
Step 5: Track Your Application
Once completed, you'll receive an email confirming receipt of your application with an ID number. You can use this to track progress through your myGov account.
The result will be emailed to you, or you can check your myGov account directly.
What Happens After Approval?
Once your claim is approved, the subsidy payment is made directly to your childcare provider on an automated basis. You'll only need to pay the remaining "gap fee."
Important reminders:
Update Centrelink if your circumstances change (income, activity hours, childcare needs)
Complete your annual income confirmation to ensure accurate payments
Check your statements regularly to ensure everything is correct
Contact the Child Care Subsidy team if you have questions
Changes in your circumstances can affect your subsidy amount, so keeping your details up to date ensures you receive the correct level of support.
Using a Child Care Subsidy Calculator
Before applying, you can estimate your potential subsidy using a Child Care Subsidy calculator. This helps you understand:
Approximately how much subsidy you may receive
Your estimated out-of-pocket costs
How changes in circumstances might affect your support
While calculators provide estimates, your actual subsidy will be determined by Centrelink based on your verified information.
FAQ
What is the Child Care Subsidy?
The Child Care Subsidy (CCS) is an Australian Government payment that helps families with the cost of approved childcare. It's paid directly to your childcare provider, reducing the fees you pay out of pocket. The amount you receive depends on your family income, activity hours, and type of care.
How much Child Care Subsidy can I receive?
The subsidy amount varies based on your family income. Families earning under $69,390 can receive up to 85% of childcare costs, with the percentage decreasing as income increases. Families earning under $353,680 can receive at least 20%. The Government also caps the hourly rate it will subsidise.
How do I apply for the Child Care Subsidy?
Apply through your myGov account linked to Centrelink. You'll need to confirm your identity, gather supporting documents (financial, employment, and childcare information), and complete the online claim process under "Families" in the claims section.
What activities qualify for the Child Care Subsidy?
Recognised activities include paid employment, self-employment, study or training, volunteering, job searching, and caring responsibilities. The number of activity hours you complete determines how many hours of subsidised care you can access per fortnight.
What happens if my circumstances change?
You must notify Centrelink if your circumstances change, including changes to income, activity hours, relationship status, or childcare arrangements. Changes can affect your subsidy amount, so keeping your details up to date ensures you receive the correct level of support.
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