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CCS News CCS Rates

The first Child Care Subsidy (CCS) fortnight of the 2022–23 financial year began on Monday 11th July 2022

CCS rates have increased in line with the Consumer Price Index.

Child Care Subsidy (CCS) rates are adjusted each July based on the Consumer Price Index (CPI) for the previous December.

The following rates will take effect the first day of the CCS fortnight, which is 11 July 2022: 

Combined annual income

The amount of CCS a family can get depends on their combined annual income. 

New CCS family income thresholds Subsidy % 
Up to $72,466 85% 
More than $72,466 to below $177,466 Decreasing to 50%Subsidy gradually decreases by 1% for each $3000 of family income. 
$177,466 to below $256,756 50% 
$256,756 to below $346,756 Decreasing to 20% Subsidy gradually decreases by 1% for each $3000 of family income.
$346,756 to below $356,756 20% 
$356,756 or more 0% 

Hourly rate cap

The maximum hourly rate we subsidise is based on the type of service.

Service type New hourly rate cap
(children below school age) 		New hourly rate cap
(school-aged children) 
Centre Based Day Care $12.74 $11.15 
Outside School Hours Care $12.74 $11.15 
Family Day Care $11.80 $11.80 
In Home Care (per family) $34.64 $34.64 

The 26-week rule

The 26-week rule has started. Children who haven’t used care at least once in the previous 26 weeks will no longer be eligible for CCS. Families can submit a new claim if their child recommences care.

Allowable absences

Allowable absences have reset. Children have 52 absences for the 2022–23 financial year.

Higher CCS for combined families

Combined families can now get the higher CCS.

The higher CCS recognises diverse family circumstances, including combined families. A combined family is where each parent or carer gets CCS for different children in their family.

The Child Care Subsidy System is being enhanced to recognise combined families from July 2022.

Services Australia will backpay the higher subsidy amount to affected families for the period March to July.

Some combined families may notice a higher rate from March 2022. This will occur if one member of the couple is CCS-eligible for more than one child age 5 or under in care. Services Australia will reassess the family’s eligibility as a whole from July 2022 and backpay any higher subsidy due for the period between March and July.

Combined families who want to get the higher subsidy before July 2022 can choose one member of the couple to claim CCS for all children. That individual will need to make a new CCS claim. Families should do this as soon as possible because claims can only be backdated for a maximum of 28 days.

If a family takes up this option, you must update the family’s enrolments. Enrolments must reflect the individual who is now claiming CCS for all children. 

Combined families do not have to take up this option. They can simply wait until July 2022 to get the higher subsidy rate. These families will be back paid their full higher subsidy entitlement for the period March to July.

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CCS Eligibility CCS News

New CCS eligibility rule is starting from 11 July 2022: 26-week rule

A new CCS eligibility rule is starting soon.

From 11 July, a child who hasn’t used care at least once in the previous 26 weeks will no longer be eligible for CCS.

If a child has not attended care since 10 January 2022, their CCS will cancel from 11 July. The rule will apply on an ongoing basis from this date. Families will need to submit a new CCS claim if the child re-commences care.

Services Australia will notify impacted families. Child care centres do not need to take action.

Services Australia will not raise CCS debts when applying the 26-week rule. Any changes to CCS entitlement will only apply from the date of cancellation.

Will the rule impact a family’s higher CCS?

Families with more than one child aged 5 or under in care can get a higher CCS for their second child and younger children.

The 26-week rule may affect a family’s entitlement to the higher CCS.

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.

If a child starts to attend care again, after their CCS was cancelled, the family can lodge a new claim for CCS.

The 26-week rule will not affect any backpay made to combined families for any higher subsidy they were eligible for between 7 March and 30 June 2022.

If families have questions, please contact Services Australia.

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CCS News

Clarification on eligibility for the higher child care subsidy rate

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.

You can visit Services Australia website for more information about the higher CCS.