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Child Care Subsidy (CCS) Changes from July 10, 2023

The Australian Government are taking measures to make childcare more affordable, with these changes designed to simplify the current system and provide more support to families who use the Early Childhood Education and Care sector.

Here are some key changes you should be aware of:

 

  1. This new system will provide greater support to low-income families and those with multiple children in care.
  2. The maximum amount of CCS is increasing from 85% to 90% for families earning up to $80,000.
  3. If you earn over $80,000 your CCS percentage will go down 1% for each $5,000 of income your family earns. You’ll either get more subsidy or have no change to your entitlement. The CCS percentage you’re entitled to depends on your family’s income.
  4. The income limit for CCS is increasing to $530,000.
  5. If you previously received 0% CCS, you may be eligible for an increased rate. Please review your CCS % and hours per fortnight to check your eligibility.

What do I need to do from 10 July?

 In most cases, you don’t need to do anything if you already get CCS as we’ll apply changes to your CCS automatically.

 

We continue to recommend the below requirements to ensure that you receive your full CCS entitlements.

 

  • Check your family income estimate is up to date so you can get the right amount from 10 July 2023. You can change your income estimates at any time should your financial circumstances change. Please visit your Centrelink online account through your myGov account, through your Express Plus Centrelink mobile app or through your myGov app.
  • Ensure your child’s immunisation status is up to date to receive your full subsidy entitlements.
  • Confirm your income with Services Australia at the end of each financial year. If your income has changed significantly, you can update your income estimate at any time during the year to ensure that your subsidy entitlement is accurate and updated.
  • Please note that for families that need to lodge a tax return after the end of the financial year for CCS purposes, it is very important that the tax returns are lodged by the date notified by Services Australia. This date will be notified by Services Australia and other Commonwealth agencies as we get closer to the end of the financial year. If the tax return is not lodged by the notified date, CCS may be cancelled and not backdated when the tax return is actually lodged.

We understand that these changes may be confusing or difficult to navigate, and we encourage you to seek assistance if you require it. Our Customer Support Team are available to answer any questions or concerns you may have or you can learn more about these changes and how they may impact your family, by visiting Services Australia Website.