Category: CCS News

Providers can offer discounted early childhood education and care (ECEC) to some employees without reducing their Child Care Subsidy (CCS).

Who can get a discount

The workforce discount is an optional incentive to help you attract and retain qualified staff.

You can offer the workforce discount to: 

• early childhood teachers and educators
• centre directors and coordinators who hold an ECEC qualification
• cooks.

The employee must:

• work at a Centre Based Day Care or Outside School Hours Care service
• have a child enrolled at a service where they work or that you own. 

How the discount works

Unlike a standard discount, the workforce discount:

• is applied after CCS calculation
• allows you to report the full fee
• requires the employee to pay at least 5% of the gap fee.

The gap fee is the difference between your fee and the family’s CCS amount. Families who get CCS must make a co-contribution to their child care fees.

As a provider, you can:

• choose whether to offer the discount to employees
• determine the discount amount, provided employees pay at least 5% of the gap fee.

How to report the discount

Usually, when offering a standard discount:

• you must report the discounted fee in session reports
• the family’s CCS will then be calculated based on the discounted amount.

When offering the workforce discount:

• you should report the full fee in session reports
• the employee’s CCS entitlement will not be affected by the discount.

Scenarios

Sangeetha the educator

Sangeetha works as an educator at your Centre Based Day Care service. She has one child attending the same service 3 days per week. Your daily fee is $100. Sangeetha’s CCS rate is 70%.

Without a discount:

• Sangeetha’s weekly fee is $300
• Sangeetha’s CCS covers $210 (70% of $300)
• Sangeetha must pay you a gap fee of $90.

With a 50% workforce discount:

• you report the full $300 fee 
• Sangeetha’s CCS remains at $210
• you then discount Sangeetha’s gap fee by 50%
• Sangeetha now pays you a gap fee of $45
• Sangeetha saves $45 every week while you retain a valuable educator.

Priya the director

Priya is the director at one of your Centre Based Day Care services. Her school-age child attends one of your OSHC services before and after school 5 days a week. You charge $30 per session. Priya’s CCS rate is 50%.

Without a discount:

• Priya’s weekly fee is $300
• Priya’s CCS covers $150 (50% of $300)
• Priya must pay you a gap fee of $150.

With a 90% workforce discount:

• you report the full $300 fee 
• Priya’s CCS remains at $150
• you then discount Priya’s gap fee by 90%
• Priya now pays you a gap fee of $15
• Priya saves $135 every week, helping you retain your centre director.

Mark the cook

Mark is a cook at your Centre Based Day Care service. His child attends the service 2 days per week. Your daily fee is $110. Mark’s CCS rate is 60%.

Without a discount:

• Mark’s weekly fee is $220
• Mark’s CCS covers $132 (60% of $220)
• Mark must pay you a gap fee of $88.

With a 75% workforce discount:

• you report the full $220 fee 
• Mark’s CCS remains at $132
• you then discount Mark’s gap fee by 75%
• Mark now pays you a gap fee of $22
• Mark saves $66 every week, making it more affordable for his family.

Maximum discount example

Afsa is an early childhood teacher with one child attending your service 5 days per week. Your daily fee is $120. Afsa’s CCS rate is 85%.

Without a discount:

• Afsa’s weekly fee is $600
• Afsa’s CCS covers $510 (85% of $600)
• Afsa must pay you a gap fee of $90.

With a maximum 95% workforce discount:

• you report the full $600 fee
• Afsa’s CCS remains at $510
• you then discount Afsa’s gap fee by 95%, noting she must still pay 5% of the gap fee
• Afsa now pays you a gap fee of $4.50
• Afsa saves $85.50 every week, allowing her to continue working full-time as a qualified ECT.

Remember: 

• you choose the discount amount
• the employee must pay at least 5% of the gap fee
• you always report the full fee to maintain their CCS entitlement.