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Child Care Subsidy

The Australian Government provides families with financial assistance to help cover the costs of approved child care – the Child Care Subsidy (CCS). It is is paid directly to providers to reduce the fees you pay.

The amount you get depends on your family’s income, the type of child care you use (it works with Kids Club!), the age of your child and the hours you and your partner work and other activities that improve your skills.

You can claim these subsidies through your Centrelink online account through myGov.

CCS is the main way the Government assists families with their child care fees. Read our article here:  What changes in the new Child Care package.

Child Care Subsidy Frequently Asked Questions

What is CCS based on?

  • CCS is a single, means and activity tested payment
  • Eligibility is determined by an activity test (both parents must work, study or volunteer at least 8 hours a fortnight)
  • CCS is paid directly to service providers and passed on to families as a fee reduction

Activity Test

The activity test is determined at family level. In a two-parent family, both parents must meet the activity test and the person with the lower number of hours will determine the relevant step of the activity test.

In a sole parent family, the sole parent must meet the activity test.  There is a new three step activity test.

Why is my CCS less than I expected?

  1. 5% of your eligible CCS is withheld by Centrelink until the end of the financial year.
  2. The maximum amount of CCS you can receive per hour is $12.31 ($10.77 for school-aged children).

How do hourly rate caps work?

The hourly rate is determined by dividing the sessional fee by the session hours. The hourly rate cap of $1231 per hour ($10.77 for school-aged children) is then applied.

Example of calculating the hourly fee for a daily session rate

Riley attends a Centre Based Day Care. They charge $140 per session. To work out the hourly rate, divides the session rate by the number of hours in the session. If the session rate is based on an 11-hour session, this means the hourly fee is $12.73.

Because this is more than the hourly rate cap, their level of subsidy will be based on the cap of $12.31. 

Child Care Subsidy Gap Fee Calculator

We have developed a Child Care Subsidy Gap Fee Calculator, to give you an idea of how much your out of pocket costs are after the Child Care Subsidy (CCS) has been applied at your nominated Kids Club centre. Click here to go to the Kids Club Child Care Subsidy Calculator 

 

Here are some interesting links:

Forms for your Centrelink Customer Reference Number (CRN): www.centrelink.gov.au

Information for your Child Care Subsidy: www.humanservices.gov.au/childcaresubsidy