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Changes To Child Care Subsidy

Changes To Child Care Subsidy

  • Wednesday, 05 July 2023 08:36

From 10 July 2023, there are changes to the way your Child Care Subsidy (CCS) entitlement is worked out which means childcare will now be cheaper for most families.

WHAT YOU NEED TO KNOW

  • The maximum amount of CCS is increasing from 85% to 90% for families earning up to $80,000.
  • The family income limit for CCS is increasing from $356,756 to $530,000.
  • If you earn over $80,000, your CCS percentage will go down by 1% for each $5,000 of income your family earns. You will either get more subsidy or have no change to your entitlement. The CCS percentage you are entitled to depends on your family’s income.

FAMILIES WITH MORE THAN ONE CHILD AGED 5 OR UNDER

From 10 July 2023, if you have more than one child aged 5 or under you can still get a higher rate for one or more of your children.

IF YOU GET ADDITIONAL CHILD CARE SUBSIDY

If you get Additional Child Care Subsidy (ACCS) your rates will stay the same. From 10 July 2023, the low-income limit for ACCS Transition to Work (TTW) will increase to $80,000. Your family will still need to meet other ACCS TTW eligibility requirements.

WHAT YOU NEED TO DO FROM JANUARY TO JUNE 2023

In most cases, you don’t need to do anything to get the increased rate. If you get CCS, Services Australia will apply changes to your CCS automatically from 10 July 2023.

WHAT’S HAPPENING FROM 10 JULY 2023

If you already get CCS or made a claim, you don’t need to do anything to get the increased rate. Services Australia will apply the changes to your CCS automatically from 10 July 2023. Your new rate of CCS will show in your online account from 10 July 2023 through myGov. Select My family from the Menu, then Family assistance, followed by Child Care Subsidy Summary to view your rate. You can also use your Express Plus Centrelink mobile app. Select Child Care Subsidy, then Children assessed to view your rate from 10 July 2023.

MAKING A CLAIM FOR CCS

From 10 July 2023 the income limit for CCS is increasing to $530,000. This means that more families will be entitled to CCS to reduce their childcare costs. If you want to check your eligibility for CCS, you can make a claim using your Centrelink online account through myGov or your Express Plus Centrelink mobile app.

If you make a claim and it’s assessed before 10 July 2023, you may be assessed at 0% if your income is over $356,756. Your new rate of CCS will automatically apply to you from 10 July 2023. You can make a claim for CCS any time using:

  • your Centrelink online account through my.gov.au
  • the Express Plus Centrelink mobile app
  • the myGov app.

UPDATING YOUR FAMILY INCOME ESTIMATE

The amount of CCS you get is calculated using your family income estimate. It’s important to make sure that you check your income estimate regularly and update it if your circumstances change. If you get CCS or if you’re already assessed for CCS but get 0%, you may be eligible for an increased rate.

Check your family income estimate is up to date so you get the right amount from 10 July 2023. You can check or update your income estimate at any time using:

  • your Centrelink online account through my.gov.au
  • the Express Plus Centrelink mobile app
  • the myGov app

For more information in relation to the changes see Services Australia.

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