From 7 March 2022, if you have more than one child aged 5 or younger in care, you may get a higher subsidy. This will apply to one or more of your children.
Who will get the higher subsidy?
You will get a higher subsidy if all of these apply:
- you get or will be eligible for Child Care Subsidy (CCS)
- your family’s combined income is under $354,305
- you have more than one child aged 5, or younger, in childcare.
If you have more than one child aged 5 or under, Services Australia personnel will assess which children get the higher subsidy by working out:
- the ‘standard rate child’
- the ‘higher rate child’ or the ‘higher rate children’.
The ‘standard rate child’ is usually your eldest CCS eligible child aged 5 or under. For this child, you’ll continue to get the CCS rate that you’re eligible for based on your family income estimate, otherwise known as the standard CCS rate. You can check the current standard CCS percentages based on family income.
The ‘higher rate child’, on the other hand, refers to your younger eligible child or children. You’ll get a higher subsidy rate for them.
For children born on the same date, such as twins, the ‘standard rate child’ will be automatically determined, while the other eligible children will be put on the higher rate.
Services Australia won’t pay the higher subsidy for sessions of In-Home Care (IHC) since this is subsidised for each family, rather than for each child. IHC will continue to be paid the standard CCS rate.
You’ll continue to get your standard rate of CCS for any eligible children aged 6 and above. If you have one child aged 5 or under, you’ll continue to receive your standard rate of CCS. The higher subsidy rate only applies if you have more than one eligible child aged 5 or under.
How to check your CCS percentage
You can check your current CCS percentage in your Centrelink online account through myGov.
To do this, select MENU > My family > Child Care > Child Care Subsidy summary.
How much higher will my subsidy be?
You’ll get a 30% higher subsidy for your ‘higher rate child’. This is a 30% increase on your standard CCS percentage capped at a maximum of 95%.
You’ll continue to get your standard CCS percentage for your ‘standard rate child’ and any children aged 6 or above.
You can check the current standard CCS percentages based on the following family income estimates.
| Your family income | Child Care Subsidy percentage |
|---|---|
| $0 to $70,015 | 85% |
| More than $70,015 to below $175,015 | Between 85% and 50% The percentage goes down by 1% for every $3,000 of income your family earns |
| $175,015 to below $254,305 | 50% |
| $254,305 to below $344,305 | Between 50% and 20% The percentage goes down by 1% for every $3,000 of income your family earns |
| $344,305 to below $354,305 | 20% |
| $354,305 or more | 0% |
Source: Services Australia
You can still claim this subsidy even if your family income estimate is $354,305 or more. If you earn less than this, you will still receive the subsidy you’re entitled to, once your payments are balanced based on your actual adjustable taxable income, which usually happens at the end of the financial year. You can track your CCS balancing in the Express Plus Centrelink mobile app.
When you open the app, select More > Child Care Subsidy > Payment Balancing.
Your CCS percentage is the amount subsidised by the government. It will apply to either your hourly fee or the relevant hourly rate cap, whichever is lower.
| Type of child care | Hourly rate cap |
|---|---|
| Centre Based Day Care – long day care and occasional care | $12.31 |
| Family Day Care | $11.40 |
| Outside School Hours Care – before, after and vacation care | $10.77 |
| In Home Care | $33.47 per family |
Source: Services Australia
When you’ll get the higher subsidy
We’ll automatically work out the higher subsidy for your family and start paying it from 7 March 2022.
Withholding
The Department will withhold 5% of your total subsidy to reduce the likelihood of you getting an overpayment. You’re able to vary this amount to suit your circumstances – something that can done up to twice a year using your Centrelink online account through myGov.
What you need to do
You don’t need to do anything to get the higher subsidy. The Government will automatically work out if you’re eligible and, if you are, they’ll apply the higher subsidy to any eligible children in your family and start paying it to your childcare service to reduce your fees. You will receive a letter once your new higher subsidy percentages are worked out.