CCS News

Why the amount of Child Care Subsidy (CCS) changes

As the new financial year starts you may notice that your out of pocket child care fees change. This is most likely caused by a change in your CCS payment. These are the 4 main reasons how much the government pays your child care service might differ.

1. Your CCS rate changes
Your CCS percentage and hours of subsidised care depend on:

  • your family income
  • the type of care you use
  • the hours of activity you and your partner do.

Every July the government:

  • updates the family income thresholds, annual cap and hourly rate caps to match Consumer Price Index (CPI) changes
  • starts using your family income estimate for the new financial year.

These updates mean you could get more or less CCS from July.

2. Your eligibility changes
You may no longer be eligible for CCS if:

  • your child doesn’t meet their immunisation requirements
  • you travel outside Australia
  • your percentage of care reduces below 14%.

If you’re no longer eligible, your CCS will stop. You can keep using child care, but you’ll need to pay full fees.

3. You’re repaying an overpayment
The government may use some of your CCS to repay money you owe them for child care fee assistance.

4. You change your withholding amount
When you get CCS the government withholds 5% of your subsidy. You might have chosen to increase your withholdings unintentionally or intentionally. If you do, your out of pocket fees are likely to increase.

CCS Rates

Child Care Subsidy rates from 13 July 2020

The Department of Education, Skills and Employment released the fact sheet which outlines adjustments to Child Care Subsidy rates that take effect on 13 July 2020.

CCS Income Test
The percentage of Child Care Subsidy a family is entitled to is based on combined annual income. Child Care Subsidy income thresholds are adjusted annually in accordance with Consumer Price Index (CPI). The table below shows the income thresholds that apply from 13 July 2020. CCS-Income-Test-FY21

CS Annual Cap
There is no annual cap for most families receiving Child Care Subsidy. The income threshold at which an annual cap does apply, and the value of the cap, are adjusted annually in accordance with CPI. The table below shows how the annual cap applies from 13 July 2020.CCS-Annual-Cap-FY21

CCS Hourly Rate Caps
The hourly rate caps are the maximum hourly rate used to calculate families’ Child Care Subsidy for each service type. The hourly rate caps are adjusted annually in accordance with CPI. The table below shows the hourly rate caps that apply from 13 July 2020.CCS-Hourly-Rate-Caps-FY21

Click here to download the Child Care Subsidy rates from 13 July 2020.