The Child Care Subsidy (CCS) provides a huge helping hand to so many families. But the complexities of the scheme can make it a little challenging to navigate. We get it! Even for those of us in the industry it’s not always straightforward to get your head around.
We’ve put together this handy guide to help you navigate the CCS system..
What is the Childcare Subsidy?
Designed to help cover the costs of child care for Australian families, the Child Care Subsidy is funded by the Federal Government. It came into effect on on 2 July 2018 and replaced the previous child care support package, known as the Child Care Rebate.
There are certain eligibility criteria that families need to meet in order to receive the subsidy and it can only be used for registered or approved child care providers. It’s also income tested so the amount of CCS you receive will vary depending on your family income.
It’s important to note that not everyone who sends their child to child care is eligible for the CCS. There are certain eligibility criteria such as residency and immunisation requirements that you must meet.
These include:
Once you have been approved for the Child Care Subsidy (see below for steps to apply), your subsidy is paid directly by the Government to your child care provider. This amount is deducted from your total fees and you only need to pay the difference.
For example, if you are eligible for a 45% subsidy and your fees are $100 per day, the Government will pay $45 directly to your provider and you will pay the remaining $55.
You can use our Child Care Subsidy Calculator to help you estimate your subsidy percentage.
The subsidy is based on what the estimate you provide of your combined annual family income. Usually you can base this off your previous year’s salary or income tax return. If you have changed jobs or received a pay rise you should also factor this in.
At the end of the financial year, after you have lodged your tax return, the Government will do a reconciliation based on your actual income for the year.
The Government also withholds 5% of your weekly CCS to help offset any potential amounts you may owe at the end of the financial year. If you have underestimated your income and are actually entitled to a lower CCS percentage, you will have to repay this money to the Government. Otherwise, any money owing to you will be paid as an annual lump sum.
All applications for the CCS are made through your myGov Account, not through your child care provider.
To apply for the subsidy, please follow the below steps:
Centrelink will assess your claim and provide you with an assessment letter outlining your entitlement. The assessment is based on the information you provide so it’s important to ensure this is as accurate as possible.
The assessment will provide you with your subsidy percentage and also how much subsidised care you can access for each child per fortnight. This is based on the number of hours you work (both paid and unpaid work), study, volunteer etc. You can find more information abou recognised activities here.
Once you have received this assessment letter, you will need to give your childcare provider your CRN and you child’s CRN. This will be given to you when you make your application and can be found in your myGov account.
Your provider will then connect your Centrelink account and add your child’s enrolment details. Once this has been done, you will receive a notification from Centrelink to login and approve the enrolment notice.
Need some more help?
Attunga Cottage is an approved child care service, and we support the families who use our services to navigate the complexities of the Child Care Subsidy every day.
If you have any questions about CCS, please contact us.
Disclaimer: Subsidies may differ depending on individual circumstances.
We acknowledge the traditional owners of this land, the Gweagal, Bidjigal People and Dharug people, and pay respect to elders past present and future, along with all Aboriginal and Torres Strait Islander people in the community and their languages.
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