If Services Australia believes there is no intention for a child to use child care, they will end a child’s CCS eligibility. Generally speaking in order to get the higher CCS, the eldest CCS-eligible child aged 5 in the family needs to use care.
However between 7 March and 10 July 2022, families can get the higher subsidy even if their eldest CCS-eligible child aged 5 or under is not using care. This transition period will help families plan their child care arrangements.
From 11 July 2022 onwards, children who haven’t used care in 26 consecutive weeks will no longer be eligible for CCS. This rule will first be applied to children who haven’t used care for the 26-week period from 10 January to 11 July 2022.
This may affect a family’s entitlement to the higher subsidy.
If a standard rate child’s CCS eligibility ends, Services Australia will reassess all other children in the family to determine:
- the new standard rate child
- new subsidy rates.
Services Australia will not reassess CCS payments for the 26-week period, for example between 7 March and 10 July 2022. The family must remain eligible during this period.
If a child starts to attend care again, a family can lodge a new claim for CCS.