The Australian Government is committed to ensuring that early childhood education and care are accessible and affordable for families across the country. One of the primary ways they achieve this is through the Child Care Subsidy (CCS).
This article will provide a detailed overview of how the childcare subsidy works, eligibility requirements, and how it can benefit your family.
What is the Child Care Subsidy?
The Child Care Subsidy is a payment from the Australian Government that helps families with the cost of child care. It replaced the previous Child Care Benefit and Child Care Rebate in July 2018. The subsidy is paid directly to approved childcare providers to reduce the fees that families pay.
Eligibility for the Child Care Subsidy
To be eligible for the Child Care Subsidy, families must meet certain criteria:
- The child must be 13 or younger and not attending secondary school
- The child must meet immunisation requirements
- The individual claiming the subsidy, or their partner, must meet residency requirements
- The family must be using an approved childcare service, such as Kiddie Garden
How to Apply for the Child Care Subsidy
To apply for the Child Care Subsidy, you need to:
- Sign in to your myGov account and link it to Centrelink
- Complete the Child Care Subsidy claim
- Provide supporting documents, including income estimates
You can also apply through the Express Plus Centrelink mobile app or by visiting a Services Australia service centre.
How Does Childcare Subsidy Work?
The child care subsidy works by reducing the amount of fees you pay. The amount of entitlement a family receives depends on three factors:
- Combined family income
- Activity level of parents (that is, how often you work, study or volunteer)
- Type of child care service
1. Your Family Income Affects Your Entitlement
A family’s annual adjusted taxable income determines the percentage of subsidy they will receive:
– Families earning $72,466 or less receive a subsidy of 85% of the childcare fee (up to the hourly rate cap)
– Families earning between $72,466 and $352,453 receive a gradually decreasing subsidy
– Families earning $352,453 or more are not eligible for the subsidy
2. Your Activity Level Determines if You Can Access the Child Care Subsidy
The number of hours of subsidised care a family can access per fortnight is determined by their activity level. Recognised activities include:
3. How Often You Work, Study or Volunteer Affects Subsidy Hours
The more you work, study, or volunteer, the higher the number of hours of subsidised care families can access. This is grouped into three categories:
| Hours of Work | Number of Hours of Child Care Subsidised |
|---|---|
| 8-16 per fortnight | 36 hours per fortnight |
| 16-48 per fortnight | 72 hours per fortnight |
| 48+ hours per fortnight | 100 hours per fortnight |
Do You Pay for Absent Days at Childcare?
Yes, most childcare services in Australia charge fees for absent days, including sick days and public holidays. However, families can receive Child Care Subsidy for up to 42 allowable absence days per child per financial year, which helps reduce out-of-pocket costs for these absences. You still need to pay the gap fee for the absent day.
Additional Child Care Subsidy
Some families may be eligible for the Additional Child Care Subsidy, which provides extra financial support. This includes:
Changes to the Child Care Subsidy in 2024
From July 2024, the Australian Government will introduce changes to make child care more affordable for families with more than one child aged 5 or under in care:
Using a Child Care Subsidy Calculator
Our childcare subsidy calculator may help you estimate child care costs at Kiddie Garden. You can also find helpful calculations on the Services Australia website.
Frequently Asked Questions
Conclusion
The Child Care Subsidy is a vital support for Australian families, making early childhood education and care more accessible and affordable. By understanding how the subsidy works and staying informed about changes, families can make the most of this financial assistance.
Remember, the information in this article was current as of July 2024. For the most up-to-date information, always refer to the Services Australia website or speak with a Centrelink representative.
