The new Child Care Subsidy (CCS) makes child care more affordable for Australian families. The subsidy is paid directly to your childcare or early learning centre to reduce the fees you pay for your child.
You may be surprised how much support you qualify for as many activities such as studying, volunteer work and even looking for work can entitle you to a child care subsidy. Does your family qualify for Child Care Subsidy? How much Child Care Subsidy can you get? Read on to find out the answers.
1. Do I qualify for Child Care Subsidy?
All Australian citizens or residents with a child aged 13 and below qualify for Child Care Subsidy as long as your child’s immunisation records are up to date.
The amount of subsidy you get is based on 3 things:
- The activity hours of the partner who is less active
- The estimated family income for the financial year
- The childcare fee capped at $11.98 per hour
(Note: Red Apple Early Learning Centre’s hourly fees are below this rate so you don’t have to worry about your rate exceeding the cap.)
2. How many hours of Child Care Subsidy am I eligible for?
The Child Care Subsidy rewards parents who contribute to the community in a variety of ways, whether it is paid work or unpaid work. This includes:
- Paid work
- Self-employment
- Unpaid work in a family business
- Setting up a new business
- Volunteering
- Studying
- Work experience or internship (whether paid or not)
- Looking for work (including searching for jobs online, preparing resumes and attending interviews)
- Authorised leave (including maternity leave and annual leave)
The amount of subsidy hours you get depends on the hours of activity you undertake each fortnight.
| Hours of activity (per fortnight) | Hours of subsidy you get (per fortnight) |
| 8 hours to 16 hours | 36 hours |
| 16 hours to 48 hours | 72 hours |
| More than 48 hours | 100 hours |
Note: Families with a combined income of less than $64,710 are eligible for 24 hours of subsidy per fortnight without having to subscribe to the activity test.
3. How much Child Care Subsidy will I get?
The amount of Child Care Subsidy you get depends on your CCS percentage. The CCS percentage is the percentage you will be allocated when you apply for CCS. Most Australian families with working parents will qualify for at least a 50% subsidy but it really depends on your total family income.
| Your family income | Child Care Subsidy (CCS) percentage |
| $0 to $68,163 | 85% |
| $68,163 to $173,163 | Between 85% and 50% This percentage goes down by 1% with every $3,000 of income your family earns |
| $173,163 to $252,453 | 50% |
| $252,453 to $342,453 | Between 50% and 20% This percentage goes down by 1% with every $3,000 of income your family earns |
| $342,453 to $352,453 | 20% |
| $352,453 and above | 0% |
Note: The government will hold back 5% of CCS paid to families for reconciliation at the end of each financial year. This balance will be paid back to you in your tax return if you are eligible.
4. How do I apply for Child Care Subsidy?
The easiest way to apply for child care subsidy is to make a claim online using your myGov account. Before you start, link your myGov account to your Centrelink account. You can do this by creating a myGov account or download the app onto your smartphone. To apply for CCS:
- Login to your myGov account
- Select Make a claim
- You will need to provide Centrelink with:
- Your estimated family income for the financial year
- Your activity levels per fortnight
- The name of the early learning centre your child is enrolled at
Important things to note
- The CCS is usually paid fortnightly based on your estimated family income. This subsidy amount is ‘balanced out’ at the end of the financial year on 30 June. Centrelink will compare your income estimates against the actual income you file with your tax returns.
- If you have overpaid, you will be reimbursed by Centrelink. If you have received too much CCS, you will have to repay Centrelink.
- For families with an adjusted taxable income of more than $188,163 and less than $352,453, there is an annual subsidy cap of $10,373 per child. Families with an adjusted taxable income of $188,163 or less have no annual cap on the subsidy they can receive. Families with an income of $352,453 or more cannot receive Child Care Subsidy.
For more details on Child Care Subsidy, talk to your Red Apple centre manager or visit the Australian government website.
