We’re making changes to the Child Care Subsidy (CCS) to help families who currently pay the most and experience the biggest barriers to participation in work.
From 10 December 2021, we’re removing the annual cap for all families who get CCS.
From 7 March 2022, families with more than one child in care will get a higher subsidy.
These changes were announced in the 2021–22 Budget. We’re implementing the changes earlier than initially announced to provide more support to families sooner.
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 we’re removing the annual cap 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, and
- 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.
What do I need to do?
Child care services don’t need to do anything to help families get the higher rate. Services Australia is working with software providers to implement the changes.
It is important that your staff and families are aware of the changes. We’ll provide more information and resources to share with staff and families in the weeks and months ahead.