The Child Care Subsidy explained
What is Child Care Subsidy (CCS)?
The Federal Government’s Child Care Subsidy (CCS) aims to make early learning and child care more affordable and accessible to families. For families new to childcare, navigating the Child Care Subsidy (CCS) can feel overwhelming. As your trusted early learning partner, we’re here to provide you with all the tools, guidance, and information you need to confidently understand the CCS application process and determine your eligibility.
CCS provides financial assistance in the form of a fee subsidy, paid directly to providers, to help reduce the daily out-of-pocket cost of child care, Preschool and/or Kindergarten. How much your family is entitled to depends on factors including your family’s income, your child’s age, and your family’s activity hours, including work, volunteering, studying and searching for work.
Some families, such as those facing temporary hardship, may be eligible for additional support.
Who is eligible to receive the Child Care Subsidy?
You or your partner may be eligible for the Child Care Subsidy if you meet the following criteria:
- You care for the child for a minimum of two nights per fortnight and use an approved child care service
- You are responsible for paying the child care fees
- You meet the residency and immunisation requirements
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How much can I claim?
Your family’s Child Care Subsidy (CCS) is calculated using three components:
- Your combined family income
- Your level of activity, such as work, study, searching for work, or volunteering
- Your childcare provider’s hourly rate
If you do not meet the eligibility criteria for the Child Care Subsidy, you may still be able to access up to 36 hours of subsidised care per fortnight if your child:
- Is Aboriginal or Torres Straight Islander
- Is or will be attending a funded Preschool or Kindergarten program, including those offered in our centres.
The Child Care Subsidy (CCS) can be tricky to navigate. To work out how much you might be eligible for, you can use our Child Care Subsidy Calculator.
Additional Child Care Subsidy
Additional Child Care Subsidy is a top-up payment in addition to the Child Care Subsidy which will provides targeted additional fee assistance to families and children who need extra support.
To qualify for the Additional Child Care Subsidy, you must first be eligible for the Child Care Subsidy and meet one of the following criteria:
- You are an eligible grandparent receiving an income support payment
- You are transitioning from certain income support payments to work
- You are experiencing temporary financial hardship
- You are caring for a child who is vulnerable or at risk of harm, abuse, or neglect
Flexible Sessions
At Sandcastles, we offer flexible childcare and kindergarten/preschool session lengths to support families in optimising their Child Care Subsidy (CCS) entitlements, including:
- Nine-Hour Session
- Ten-Hour Session
- Full-Day Session
Choosing the session length that best suits your family’s individual needs may help maximise your eligible Childcare Subsidy and further reduce your daily out-of-pocket costs. Our Centre Managers can help ensure you’re on the best session length suited to your circumstances.
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Kindergarten and Preschool funding
In addition to the Child Care Subsidy (CCS), in some Australian states, kindergarten and preschool funding makes early learning more accessible for families. Different states offer specific funded programs to help ensure kindergarten and preschool is available to all families.
We’ve outlined the latest state-based funding available in our centres in addition to your eligible Childcare Subsidy.
Frequently asked questions:
To apply for the Child Care Subsidy (CCS), follow these steps:
- Set up online accounts: Create a myGov account and link it to Centrelink.
- Prove your identity: Verify your identity through Centrelink.
- Submit a claim: Log in to your Centrelink online account via myGov, navigate to the CCS section, and complete the claim form.
For a detailed guide, check the Services Australia website.
When applying for CCS, you may need to provide:
- Identification: Personal details such as your birth certificate, passport, or other proof of identity.
- Income Information: Proof of your family’s income, such as payslips, tax returns, or Centrelink income statements.
- Child’s Details: Your child’s birth certificate or other documents confirming their age and identity.
- Activity Hours: Documentation of your activity hours (e.g., work, study, volunteering) such as employment records, enrolment letters, or job search details.
- Residency Status: If required, proof of your residency status in Australia, such as a visa or permanent residency card.
- Immunisation Records: Proof that your child is up to date with their immunisations.
Specific document requirements will be indicated during the claim process.
To be eligible for CCS, you or your partner must meet residency requirements, which generally include being an Australian citizen or a permanent resident.
If you’re not a permanent resident of Australia, you may still be eligible for CCS if you meet specific residency conditions. It’s worth checking with Centrelink to see if you qualify.
The Child Care Subsidy (CCS) helps families with childcare costs, with the subsidy percentage determined by income.
Starting 8 July 2024:
- families earning up to $83,280 will receive a 90% subsidy
- families earning between $83,280 and $533,280 will see the subsidy decrease by 1% for every $5,000 over $83,280
- families with incomes over $533,280 are not eligible for the subsidy.
Additionally, families with more than one child under 5 may qualify for a higher subsidy rate for some children.
For the latest information, families should refer to the Services Australia website.
Factors influencing your CCS percentage in a long day care centre include:
- Family income: Higher incomes result in lower subsidy percentages.
- Activity level: The number of hours you and your partner engage in recognised activities affects the subsidised hours.
- Number of children in care
You can check your CCS eligibility and estimate your entitlement by logging into your Centrelink online account through myGov. The system provides information based on your current circumstances.
Your childcare provider should receive your CCS payments directly whilch will reflect on your statement. You’ll only need to pay the out of pocket “gap” amount – the difference between your subsidy and the total fee.
Yes, CCS can be used for multiple approved providers. Each childcare provider will generate a Complying Written Arrangement for families to review and sign, this information is also submitted to Centrelink. It is important that families review the sessions hours at both child care providers to ensure they are optimising their CCS entitlements.
If your circumstances change, such as variations in work hours or family income, you must update your details with Centrelink. Changes can affect your CCS entitlement.
You can notify Centrelink of any changes through your Centrelink online account via myGov. Navigate to the relevant section and update your details accordingly.
The Activity Test looks at a number of activities such as how many hours you and your partner spend working, studying, volunteering and the time it takes to commute to and from the childcare centre and your pace of work/study etc. The more hours you do, the more subsidised childcare hours you’re entitled to each fortnight with a maximum of 100 hours per fortnight.
Great news – the Child Care Subsidy (CCS) is applied individually for each child. If you have more than one child in care, the subsidy for each child is calculated based on your family’s specific situation. To ensure you receive the correct subsidy rates, make sure each child’s enrolment is confirmed with Centrelink.
If your family has more than one child aged 5 or under attending childcare, you may be eligible for a higher CCS rate for your younger children. The higher subsidy amount is dependent on the family’s income test.
If your payments stop or there’s a delay, it may be because some details need updating. Check your myGov account to make sure everything is correct. If you’re still unsure, reach out to Centrelink for help.
If your child will be away, you can notifiy the centre via the Xplor home app or by contacting the centre by phone.
Each child is allowed up to 42 absence days where CCS will be paid per financial year, including public holidays, sick days, and holidays. If you exceed the 42 allowable absence days. CCS won’t apply for any additional days your child is absent and youwill need to pay the full daily fee for those days.
In some cases, like if your child is sick or there’s a local emergency, additional absences can be approved. To get these approved, you’ll need to provide a valid medical certificate or other supporting documentation within 21 days of the absence.
You can check how many absence days your child has used on your Fee Statement, through your Centrelink online account, or by asking your Centre Manager.
It is important to make sure to inform both your childcare centre and Centrelink, as prolonged absences may impact your CCS payments and your child’s enrolment.
Holiday absences (and public holidays) are included in the 42 allowable absences count.
Always check with Centrelink before your trip to ensure your payments remain uninterrupted.
We understand that public holidays are a bit different, but fees are still charged as they help cover the costs of maintaining our staff and resources, ensuring we’re ready to provide the best care when your child returns.
To make things easier for families, we offer a 25% holiday discount, which can be applied to public holidays. Simply let us know at least two weeks in advance by submitting a Holiday Discount Request Form, and we’ll take care of the rest. This way, you can enjoy a little extra flexibility while ensuring your child’s place is secure.
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Still need help?
Upon enrolment, your centre manager will also walk you through the process of understanding and optimising your Child Care Subsidy (CCS) benefits, ensuring you have all the support and guidance needed to make the most of your early learning experience.