Understanding the Changes to the Child Care Subsidy (CCS)
From 10 July 2023, the Australian Government will be increasing Child Care Subsidy (CCS) rates for families. These changes contribute to making childcare more affordable and expand the eligibility criteria for the Child Care Subsidy, ensuring that more families can access the support they need.
Main changes to CCS
Notable changes taking effect on 10 July 2023 include:
- The maximum Child Care Subsidy (CCS) rate is being raised from 85% to 90%.
- Families with an income of $80,000 or less will be eligible for a CCS rate of 90%.
- For families earning over $80,000, the CCS rate will decrease by 1% for every $5,000 increase in family income. This reduction will continue until it reaches 0% for families earning $530,000, or more.
- Families earning below $362,408, who have more than one child aged 5 or under in care, can still receive a higher rate for their second and younger children.
New CCS Rates From 10 July 2023
| Family Income | Current CCS% | New CCS% From July 2023 |
|---|---|---|
| $70,000 | 85.0% | 90.0% |
| $80,000 | 82.5% | 90.0% |
| $90,000 | 79.2% | 88.0% |
| $100,000 | 75.8% | 86.0% |
| $120,000 | 69.2% | 82.0% |
| $140,000 | 62.5% | 78.0% |
| $160,000 | 55.8% | 74.0% |
| $180,000 | 50.0% | 70.0% |
| $200,000 | 50.0% | 66.0% |
| $220,000 | 50.0% | 62.0% |
| $240,000 | 50.0% | 58.0% |
| $260,000 | 48.9% | 54.0% |
| $280,000 | 42.3% | 50.0% |
| $300,000 | 35.6% | 46.0% |
| $350,000 | 20.0% | 36.0% |
| $400,000 | 0.0% | 26.0% |
| $450,000 | 0.0% | 16.0% |
| $500,000 | 0.0% | 6.0% |
| $530,000 | 0.0% | 0.0% |
The amount of Child Care Subsidy you get depends on your circumstances. This table is a guide only. Changes to the law, your childcare centre daily fees, or your individual circumstances may impact how much Child Care Subsidy you are entitled to. To learn more, go to Services Australia – Child Care Subsidy.
How much CCS will I get?
You can use the Child Care Subsidy (CCS) Calculator on StartingBlocks.gov.au to see what your CCS rates may be from 10 July 2023.
What you need to do
If you are already receiving CCS or made a claim, you don’t need to do anything. The increased rate will be applied automatically to your CCS effective from 10 July 2023. You will be able to view your updated CCS rate in your Centrelink account.
If you were not eligible for CCS and think you may become eligible from July, you need to make a claim through myGov or the Centrelink App.
It is important to note that if your claim is assessed before 10 July 2023, and your income exceeds $356,756, you may be assessed at a 0% rate. However, the new CCS rate will be automatically applied to your claim from the 10th of July.
If you have any questions regarding the upcoming CCS changes, visit the Services Australia website, or download Services Australia’s Changes to Child Care Subsidy Fact Sheet.