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CCS News

Breaking News: Higher CCS for multiple children and removal of annual cap brought forward

From 10 December 2021, the annual cap will be removed for all families who get CCS.

From 7 March 2022, families with more than one child in care will get a higher subsidy.

Annual cap

Families earning more than $190,015 (2021–22 terms) have an annual subsidy cap of $10,655 per child each financial year.

From 10 December 2021, this annual cap will be removed for all families who get CCS.

Families with more than one child in care

From 7 March 2022, families with children aged five or under in care will get a higher subsidy for their second child and younger children.

Who will be eligible?

Families may be eligible if they:

  • earn less than $354,305
  • have more than one child aged five or under in child care.

Who gets the higher subsidy?

Services Australia will work out which children get the higher subsidy by:

  • assessing all children in the family unit
  • identifying the standard rate child
  • identifying the higher rate children.

The standard rate child will get the standard CCS subsidy. Younger children will get a higher subsidy.

The standard rate child is the eldest child in the family unit aged five or under who is eligible for CCS and attending care.

How much do higher rate children get?

Eligible higher rate children will receive a 30% higher subsidy, up to a maximum 95%.

Children eligible for the higher CCS rate will have the increase automatically included in their CCS percentage reported to services.

Additional Child Care Subsidy (ACCS)

Children who are entitled to both the higher CCS rate and Additional Child Care Subsidy (ACCS) will be paid the ACCS rate.

In Home Care

Sessions of In Home Care do not attract the higher subsidy for younger children. This is because In Home Care is subsidised on a family rather than per child basis.

However, children aged five or under in In Home Care are included in the family unit when determining the standard rate child.

A family with their standard rate child in In Home Care will get the higher subsidy for younger children who attend care.

What do families need to do?

Families already getting CCS don’t need to do anything. Services Australia will automatically increase the CCS for eligible second and younger children.

Families will be eligible for the higher rate from 7 March 2022.

For families new to CCS, a child must receive a session of care before they can be considered the standard rate child.

All CCS-eligible children aged five or under are counted in a family unit when determining the standard rate child, and the higher rate child/children.

For families with children born on the same date, Services Australia will automatically determine which child is the standard rate and apply the higher rate to other children.

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CCS News

Enhanced Child Care Subsidy from July 2022

From July 2022, families will receive more support from the Australian Government with the Child Care Subsidy (CCS) set to be increased for families with multiple children under the age of 6, and the annual cap removed.

Overview

From July 2022, families will receive more support from the Australian Government with the Child Care Subsidy (CCS) set to be increased for families with multiple children under the age of 6. These changes are subject to the passage of legislation.

The changes include:

  • increasing the Child Care Subsidy for families with more than one child in care under the age of 6, and
  • removing the annual cap.

These measures will lower out-of-pocket costs for more than 250,000 families in 2022–23, with the Australian Government investing an additional $1.7 billion through CCS.

Families with children under 6 face higher child care costs and these are compounded where a family has more than one child. Thanks to the subsidy increase, families with multiple children aged under 6 in care will pay less in child care fees.

Increased subsidy for families with multiple children

From July 2022, the Australian Government will increase a family’s CCS if they:

  • earn under $353,680 (2020–21), and
  • have more than one child aged under 6 in care.

The Australian Government will increase the subsidy by 30% (capped at 95%) for their second child and subsequent children aged under 6 in care.

The increased subsidy will not apply to In Home Care sessions as IHC is subsidised on a family rather than per child basis.

Removing the annual cap

Families earning more than $189,390 (2020–21) now have an annual subsidy cap of $10,560 per child each financial year.

From July 2022, the Australian Government will remove this annual cap.

For more information please visit the official Enhanced Child Care Subsidy information page.

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CCS News

If you don’t confirm your 2018–19 income by 31 March, you’ll lose your Child Care Subsidy

Did you get Child Care Subsidy for 2018-19?

If you got Child Care Subsidy (CCS) for the 2018-19 financial year, you must confirm your income. If you haven’t, do it now.

If you don’t confirm your income by 31 March 2021, your CCS will reduce to 0%. This means you’ll need to pay full fees when you access child care.

The deadline for confirming your income was extended from 30 June 2020 to 31 March 2021 because of COVID-19.

If you confirm your income after 31 March 2021 we can start your CCS again.

But if there’s a gap between your CCS stopping and starting again, you’ll miss out on CCS for that time.

Letters were sent to families in February 2021 asking them to confirm their income.

How to confirm your income

You don’t need to call or visit Services Australia to confirm your income.

You need to either:

  • lodge your tax return with the Australian Taxation Office (ATO)
  • tell us you don’t need to lodge one and confirm your income online.

If you have a partner, they’ll need to do this too. If you separated during the year, Services Australia will also need your ex-partner’s income.

To check if you need to lodge a return, use the Do I need to lodge a tax return? tool on ato.gov.au.

If you’ve lodged your tax return, the ATO will send Services Australia your income information. Services Australia usually get this within 28 days from when you get your Notice of Assessment.

If you or your partner don’t need to lodge a tax return, you need to let Services Australia know.

You must do this, even if you’ve told the ATO that you don’t need to lodge. You can do this and confirm your income for the year using either your:

  • Centrelink online account through myGov
  • Express Plus Centrelink mobile app.

Where to find more information

For more information about Child Care Subsidy go to servicesaustralia.gov.au/ccstimelimits.