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ccs updates

Child Care Subsidy Updates

Hi Parents,

 

As you may know, there will be changes to the Child Care Subsidy as of the 10th of July 2023. From July, the Government will be spending $4.5 billion to offer more affordable subsidy rates to Australian families. What does this mean for you? This means that the Government will lift the maximum CCS rate to 90% for families earning $80,000 or less!

With the new changes, the CCS percentage tapers down 1% for each $5,000 of family income instead of the current $3,000, which makes families better off! If you wish to calculate your new child care subsidy, please follow the table below, or click here to use the CCS calculator.

 

FAQs

What are the changes to CCS in 2023?
If your family earns less than $530,000 annually, you will be eligible for increased child care subsidy (CCS) from 10 July 2023. This is because the CCS percentage you are eligible for depends on how much your household earns. This change is in addition to the higher sibling subsidy.

 

How does CCS get calculated?
To work out how much CCS you’re eligible for we’ll look at all of the following: your family’s income. the hourly rate cap based on the type of approved child care you use and your child’s age. the hours of activity you and your partner do.

 

What happens if you earn more than you accounted for in your CCS claim?
If you underestimated your family income, you may end up with an overpayment which you’ll need to pay back. Centrelink will use the amount withheld to help reduce the debt. If you have a CCS overpayment, we may use some of your CCS each fortnight to pay this back.

 

How long does it take for Centrelink to approve a child care subsidy?
The entire process may take between four and six weeks

 

What is the highest percentage of child care subsidy?
90% is the maximum amount of subsidy a family can receive for one child.

 

How much will I save?
The below table shows the estimate of the new CCS rates and savings per income band (based per the example daily rate of $140).

 

Screenshot 2023 06 22 at 11.57.52 am

 

Following on from this, changes will be made to your CCS automatically from 10 July 2023, and you will not be required to take action on anything. However, if you wish to research further, Services Australia have compiled a fact sheet that you can download for your knowledge. Click here to access the site and download the PDF document.

 

Did you know the Government also provides additional CCS support for families who need the extra help? Click here to determine if you are eligible.

 

For more information about the Child Care Subsidy updates, click here!