Tag: CCS Rates

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CCS News CCS Rates

Changes to CCS from July 2023

Child Care Subsidy (CCS) is changing.

From July 2023 most families using child care will get more CCS. Here’s what you need to know:

  • The maximum amount of CCS is increasing from 85% to 90%.
  • Families earning $80,000 or less will get 90% subsidy.
  • Families earning over $80,000 and under $530,000 will get a subsidy that tapers down from 90%, depending on their income. The subsidy will go down by 1% for each $5,000 earned.
  • Families earning below $362,408 with more than one child aged 5 or under in care can still get a higher rate for their second and younger children when the changes occur on 10 July 2023. The higher rate for second and younger children will end when a family earns $362,408 or more. All children will then receive the standard CCS rate. (Updated on 01/03/2023)
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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 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.