https://www.jennyselc.com.au/wp-content/uploads/2022/11/Group-179.svg
https://www.jennyselc.com.au/wp-content/uploads/2022/11/Jennys-j1.png

UNDERSTANDING THE CHILD CARE SUBSIDYA Simple Guide For
Families

Families can estimate their CCS entitlement using the child care subsidy calculator
at the bottom of this page. This tool considers factors like family income,
activity level, and care type to provide an estimate, helping families plan for child care costs.

Farm toys on grass

What Is The Child Care Subsidy?

The Child Care Subsidy (CCS) is a government-funded program that assists families by covering a portion of their child care fees. This subsidy, paid directly to child care providers, aims to make child care more affordable for Australian families, allowing parents to balance work and caregiving responsibilities.

The Child Care Subsidy helps reduce the cost of child care by paying a percentage of the fees directly to approved providers like Jenny's Early Learning Centres. The amount depends on various factors, including family income, the number of children in care, and parental activity levels.

WHAT YOU NEED TO KNOW ABOUT THE CHILD CARE SUBSIDY?

Understanding the basics of CCS can help families manage child care costs. The subsidy amount is influenced by several factors, which determine eligibility and entitlement. By familiarising yourself with how CCS works, you can maximise your entitlement and better budget for child care.

Why DOES the Government Provides Subsidies for Child Care?

The Australian Government provides the Child Care Subsidy to support families in accessing affordable child care. By doing so, it encourages workforce participation, particularly for primary caregivers, and supports early childhood education. The subsidy also ensures children receive high-quality early learning experiences.

Who Is Eligible?

Eligibility for CCS is based on several factors:

  • Residency Requirements: At least one parent or guardian must be an Australian resident or hold a permanent visa.
  • Income Limits: Your family income affects the subsidy rate.

Immunisation Requirements: Children must meet immunisation requirements or have an approved exemption to qualify for CCS.

Family Eligibility and Entitlement

The CCS entitlement is determined by family income, activity levels, and the number of children in care. The Australian Government calculates each family’s entitlement based on these factors, ensuring fair distribution of support. This entitlement is tailored to each family’s specific circumstances.

How Much CCS Can a
Family Receive?

FAMILY INCOME

Family income plays a central role in determining CCS entitlement. Generally, families with a lower income receive a higher subsidy rate, while families with higher incomes may receive a reduced rate. Each year, income thresholds are adjusted to align with current financial conditions.

CCS Rates 2024-25

The CCS rates for the 2024-25 financial year have been adjusted to accommodate changes in income levels and child care needs. Families can refer to the updated rate table on the Services Australia website or use the child care subsidy calculator for an estimate of their entitlement.

NUMBER OF CHILDREN IN CARE

Families with multiple children in care may receive a higher CCS percentage for the second and subsequent children under five. This increased rate aims to support larger families in managing child care expenses.

Rates for Second and Younger Children 2024-25

In the 2024-25 financial year, the CCS provides additional support for families with more than one child in care. This higher subsidy for second and younger children helps families balance child care costs while enabling parents to engage in work or study.

ACTIVITY LEVEL

The activity level of each parent or guardian affects CCS entitlement. The government assesses recognized activities, including work, study, and volunteering, to determine the number of subsidised child care hours a family can claim. This activity test helps ensure that families with higher activity levels receive additional child care support.

Activity Levels 2024-25

Activity levels for the 2024-25 financial year have been defined by the government to determine subsidised hours. Families meeting minimum activity thresholds qualify for a baseline level of CCS, while those with higher activity hours may be eligible for additional support.

Aboriginal and Torres Strait Islander Children

Aboriginal and Torres Strait Islander families receive additional assistance to promote access to early learning programs. This includes higher CCS rates, exemptions, and additional support, ensuring equitable access to child care and education.

Care Type

The Child Care Subsidy applies to various care types. As a long day care provider, Jenny’s Early Learning Centre’s primary focus is on providing high-quality early learning experiences that foster children’s growth and development.

2024-25 Hourly Rate Caps

Each care type has an hourly rate cap set by the government, determining the maximum subsidy amount. For long day care, the rate cap for 2024-25 ensures that CCS payments align with typical market costs, making child care more accessible for families.

Calculating How Much Your
Family Can Claim

Families can estimate their CCS entitlement using the child care subsidy calculator
on the Services Australia website. This tool considers factors like family income,
activity level, and care type to provide an estimate, helping families plan for child
care costs.

 

Child Subsidy Calculator

Additional Child Care Subsidy

To qualify for CCS, families must choose an approved child care provider. Approved care types include long day care, like Jenny’s. Choosing an approved provider ensures that families are eligible for CCS and their children receive quality care.

Approved care types

The Additional Child Care Subsidy (ACCS) offers further support to families in special circumstances, such as financial hardship or children at risk. The ACCS provides additional funds beyond the standard CCS, ensuring vulnerable children have access to safe, nurturing care. If you believe you may qualify for ACCS, our team can help you understand the criteria and application process.

Recognised Activities

Recognised activities in the activity test include work, study, volunteering, and other efforts contributing to employability. The activity test determines the number of subsidised hours a family can claim, so reporting these activities accurately is essential.

Shared Care

For families with shared custody, CCS entitlements are calculated separately for each parent or guardian. This ensures fair access to the subsidy, regardless of custody arrangements.

Access the Child Care Subsidy System

How to Access CCS

Create a myGov Account
Visit myGov to create an account if you don’t have one. Your myGov account connects you to Centrelink and other government services essential for managing the Child Care Subsidy.

Log in and Link to Centrelink
Once your myGov account is set up, link it to Centrelink. This allows you to access and manage your CCS application and related information.

Submit a Claim for CCS
In your linked Centrelink account, navigate to “Child Care Subsidy” and start a claim. You’ll need to provide your family income, activity hours, and other relevant details.

Confirm Your Child’s Enrolment (CWA)
After your claim is approved, your child care provider (like Jenny’s) will issue a Complying Written Arrangement (CWA). This is a formal agreement between you and the centre that outlines your child’s enrolment details, session hours, and fees.

  • You’ll need to review and confirm this agreement via your myGov account.
  • Any permanent changes to your child’s bookings (e.g., additional days, reduced hours) will require an updated CWA, which must also be confirmed in myGov.
  • Keeping your CWA up-to-date ensures your CCS continues without interruptions.

Wait for Approval
Once your claim and CWA are processed, Centrelink will notify you of your entitlement. You’ll also receive details about how much subsidy you are eligible for and how it will reduce your child care fees.

Receive CCS Payments
After approval, CCS payments are sent directly to Jenny’s Early Learning Centres and applied to your child care fees. You’ll only need to pay the remaining gap fee.

Keep Your Details Updated
Update your family income, activity hours, and any changes in your child’s enrolment as soon as they happen. This ensures your CCS entitlement stays accurate and avoids overpayments or disruptions to your subsidy.

Enrolling children

To access CCS, families must enrol their children in an approved provider like Jenny’s Early Learning Centre. Approved providers report each child’s attendance, ensuring accurate CCS payments.

Claim Online

Claiming CCS online via myGov is simple. This system allows you to track payments, update family information, and ensure your CCS entitlement is up to date.

If You Don’t Have a myGov Account

For those without a myGov account, creating one is essential for managing CCS and other government services. The myGov website guides users through account setup and linkage to Centrelink.

If You Can’t Claim Online

If online claims aren’t possible, you can visit a Centrelink office or contact the Centrelink CCS support line for assistance.

Reporting Sessions of Care

Child care providers submit attendance records to Services Australia, which uses this data to calculate CCS payments. Families should confirm that reported care sessions match actual attendance to prevent payment discrepancies.

Managing Absences

Families can claim up to 42 absence days per year, including public holidays, without affecting their CCS. In cases of illness or exceptional circumstances, additional absences may be available.

Is There Back Pay for the Child Care Subsidy?

In some cases, CCS can be backdated. Families who missed out on previous entitlements may request back pay by contacting Services Australia, provided they meet the necessary criteria.

Payments and Fees

CCS payments are applied directly to your child care fees at Jenny’s. The subsidy reduces your out-of-pocket costs, leaving only the gap fee for families to pay.

Understanding Overpayments and Debts

Overpayments occur when families receive more CCS than they’re entitled to due to income or activity discrepancies. Services Australia will recover any overpaid amount, so keeping details up to date is essential.

Balancing Payments

Each financial year, Services Australia balances CCS payments by comparing estimated and actual family income. If you received less subsidy than entitled, a top-up payment may apply. If you received too much, repayment may be required.

 

Become an Approved Provider

Child care providers must meet government standards to become CCS-approved. Jenny’s Early Learning Centres are approved providers, ensuring quality care and CCS eligibility for families.

Recent Changes

The CCS is adjusted each financial year to reflect changes in family income levels, hourly rate caps, and activity requirements. Staying informed about these changes ensures families receive the correct subsidy.

How to Contact Centrelink CCS

Families can contact Centrelink’s CCS support line for questions or assistance. Additional resources are available on the Services Australia website.

Featured posts

Jenny's ELC Armstrong Creek
Jenny’s Early Learning Armstrong Creek is putting community at the heart
Top Tips for Transitioning to School -
Inclusive Holiday Traditions for Every Family

No post to show.

Still Need Help?

The best way to learn more about the Child Care Subsidy and how we support your child to grow and thrive, is to give us a call or come into the centre and speak to our experts. Our team can help you navigate the Child Care Subsidy, help you to estimate your subsidy and also introduce you to the incredible team of Early Childhood professionals who will care for your children. We’re here to help.