ChildCare Subsidy (CCS)
Child care subsidy is a great financial support for families who are looking to return back to work and provide high quality education and care for their little ones. The Childcare subsidy scheme can be daunting to navigate. To support families, we have put together a simple step by step guide for you.
What is Childcare Subsidy?
CCS is a Federal Government funded financial support to cover the cost of childcare for Australian families. It came into effect in July 2018 and replaced the old Child Care Benefit and Child Care Rebate system. The cost of child care can vary from one family to another, depending on factors such as the age of your child, the number of days your child requires care, and your eligibility for Childcare Subsidy (CCS).
To get an accurate estimate of the daily fees, we suggest that you reach out to us, so we can provide you with further information and discuss the available options with you.
Childcare Subsidy Eligibility Criteria
It is important to note that not everyone living in Australia are eligible. There are certain criteria that needs to be meeting to be eligible for CCS.
- Children should be up to date with all immunisation or hold an approved medical exemption.
- Child must be 13 or younger or 14 to 18 with disability.
- One or both parent/ guardian must be an Australian citizen.
- The person liable for paying the fees and caring for children can apply for CCS.
Visit the Services Australia website to find out who can get Childcare Subsidy.
How is Childcare Subsidy calculated?
CCS is means tested and depends on 3 factors:
- Family income estimate: How much both parents earn.
- Activity statement: Hours of activity (paid and unpaid work) that both parent are involved in.
- Type of childcare: Long day care, Pre-School, Before or After School Care.
How much CCS will I get?
The CCS percentage you are entitled to depends on your family income estimate. Your CCS percentage is what the government will subsidise for your total childcare cost. This will apply to either your hourly fee or the relevant hourly rate cap, whichever is lower.
|
You family income
|
CCS percentage
|
|---|---|
|
$0 to $72,466
|
85%
|
|
More than $72,466 to below $177,466
|
Between 85% and 50%
The percentage goes down by 1% for every $3,000 of income your family earns
|
|
$177,466 to below $256,756
|
50%
|
|
$256,756 to below $346,756
|
Between 50% and 20%
The percentage goes down by 1% for every $3,000 of income your family earns
|
|
$346,756 to below $356,756
|
20%
|
|
$356,756 or more
|
0%
|
* This information is extracted from Services Australia is current for July 2022 and is subject to change.
What is a recognized activity?
You need to do recognised activity to get CCS. Recognised activities include any of the following:
- paid work including being self employed
- paid or unpaid leave, including paid or unpaid parental or maternity leave
- unpaid work in a family business
- unpaid work experience or unpaid internship
- actively setting up a business.
This can also include:
- doing an approved course of education or study
- doing training to improve work skills or employment prospects
- actively looking for work
- volunteering
- other activities on a case by case basis.
Find out more about Recognised Activities for Childcare Subsidy.
Your activity level is based on the hours of recognised activity you spend during a fortnight. The more hours you spend doing the activities listed above, the more subsidy you will be entitled to. If you have a partner, Centrelink will calculate your activity level based on the lower activity level between you and your partner. The hours of subsidised childcare you are eligible for applies to each child per fortnight. The activity levels are as per the table below.
|
Activity Level per fortnight
|
Hours of Subsidised Child care each fortnight
|
|---|---|
|
Less than 8 hours
|
0 hrs(Income above $72,466)
24hrs (Income less then $72,466) |
|
More than 8 -16 hours
|
36 hours
|
|
More than 16 - 48 hours
|
72 hours
|
|
More than 48 hours
|
100 hours
|
Childcare Subsidy Calculator
The best way to estimate how much CCS you will receive is to use the CCS calculator at Starting Blocks.
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, the government will use the withheld amount or if it exceeds, you will be required to repay this amount. Otherwise, if the government owes you, they will pay in lumpsum.
Additional Childcare Subsidy
ACCS is an additional support for families who are genuinely disadvantaged. This extra help allows children to access high quality child care who would usually miss out due to hardship or other family circumstances. To be eligible , you need to first be eligible for CCS.
There are 4 types of ACCS. These are as follows:
Grandparent Subsidy
For grandparents on an income support payment and have 65% or more care of their grandchild or great grandchild. The grandparent must also make day-to-day decisions about their grandchild’s care.
Transition to Work Subsidy
For families with an income of less than $80,000 and meet certain other transition to work eligibility requirements such as having a Job Plan or Participation Plan and receiving other Government support payments.
Temporary Financial hardship Subsidy
For families that have experienced financial hardship of a temporary nature and have a substantially reduced ability to pay their childcare fees. The event leading to the financial hardship must have happened in the last six months and may include things such as losing a job, serious illness or the death of a partner.
Child Wellbeing Subsidy
For families caring for a child who is vulnerable or at risk of harm, abuse or neglect.
Pre-School Exemption Program
Creative Nook Early Learning Centre provides a Preschool program run by qualified Early Childhood Teacher. If your child is 4 years and up, you are eligible for additional fee relief under the Pre school Fee Relief Funding Program.
This fee relief is available to all families. You don’t have to be eligible for CCS.
To Find out more, fill out the contact form or give us a call.
Childcare Subsidy Assessment
Once you apply for CCS, Services Australia will assess your case and consider your individual circumstances. This assessment process can take up to 4-6 weeks. We would recommend that you start the process as soon as you have an idea of when you would like your child to start childcare. This way you CCS payment is ready to go on their first day of attendance. Otherwise you may have to pay full fees.
Once you receive the letter of assessment, contact us on 02 9618 2252 and provide us with your CRN and your child’s CRN. We will then begin the process of their enrolment. You can also do this online by filling out the enrolment form.
Confirm your Complying Written Agreement
At Creative Nook we use OWNA to manage CCS payments on behalf of families. Once you finalise your enrolment with us, we will guide you through the process of setting up your account with OWNA and then signing the CWA. This allows us to link your child’s enrolment with Centrelink and receive the CCS on your behalf.
Confirm your enrolment with Centrelink
Once all is finalised and enrolment is set up with us, you will be prompted to accept the enrolment in the Centrelink app. Simply go to My Gov or Centrelink Express app and in Enrolment tab, confirm the enrolment. This will be same information as you have agreed upon via CWA. This step is essential, to receive Childcare subsidy. You are required to complete these steps before starting to ensure we receive CCS on time.
How do I apply for CCS?
You can follow the steps to apply for CCS here.
To apply for CCS or find out more about what you’re entitled to, visit the Services Australia website. We are always here to assist you with any queries that you may have about your CCS entitlements.
