CCS Childcare Subsidy: A Practical Guide To Help You Reduce Out-Of-Pocket Expenses

What is CSS?

The childcare subsidy is financial assistance provided by the Australian Government to help you with the cost of childcare. How much you receive depends on several factors, including:

  • your family’s income
  • the age of your child
  • the paid and unpaid activities in which your family is involved (like your job or volunteer work).

Extra support is available for some families, such as grandparents and great-grandparents, and families experiencing temporary financial hardship. The CSS is paid directly to providers to reduce your out-of-pocket expenses. 

Subsidy makes accessing high-quality childcare easy and more affordable for families, in which you may be eligible if you meet the criteria. Knowing how to get the most out of the subsidy means maximising the amount of time your child can spend in care, which supports your child’s development and overall wellbeing. We are here to help you understand the system and how to access your entitlements.

Am I eligible to receive CCS?

Here are the requirements:

  • RESIDENCY – You must live in Australia and meet the residency requirement as outlined in legislation
  • CHILDCARE PROVIDER – The childcare provider and its service type must be approved and delivered in Australia
  • IMMUNISATION – Your child must meet immunisation requirements as outlined by the Australian Government
  • AGE – Your child must be aged 13 or under and must not attend secondary school (exemptions apply)
  • FAMILY INCOME – The amount of subsidy granted depends on the total taxable income of the parents/caregivers per financial year
  • ACTIVITY LEVELS – Parents/caregivers with the lowest entitlement determine the hours of subsidised care for the child

How to Claim the CCS 

You need to:

  • have a CRN for both you and your child
  • be eligible.

To start the process, you need a CRN (individual customer reference number) for you and your child. You can find this on your MyGov app or on your Centrelink account. Once you have both numbers, you can start the eligibility test, which includes the above factors listed. After completing your eligibility test, you need to supply both CRNs, and this information will be submitted to you and Centrelink to confirm.

It is best to complete this as soon as you can to avoid out-of-pocket fees. You can find more information on the Services Australia website and complete your eligibility process through the Services Australia eligibility tool.

How much can you get?

You can use Services Australia Payment and Service Finder to estimate how much Child Care Subsidy (CCS) you may get.

They look at the following:

  • your family’s income
  • the hours of activity you and your partner do
  • the hourly rate cap based on the type of approved child care you use and your child’s age
  • your number of children in care.

 

What counts as “activity”?

The hours of CCS entitlement for each family are based on recognised activity. In two-parent families, the hours of care entitled is determined by the person with the lowest number of hours of activity per fortnight. Recognised activity can count as:

  • Paid work including being self-employed
  • Paid or unpaid leave, including paid or unpaid parental or maternity leave (up to six months)
  • Unpaid work in a family business by an immediate family member
  • Unpaid voluntary work, work experience or internships
  • Participating in an approved course of education or study
  • Training to improve work skills and/or employment prospects
  • Actively setting up a new business that has not yet begun operation (up to six months)
  • Actively looking for work
  • Recipients of JobSeeker, Parenting Payment or Special Benefit, with a compulsory mutual obligation requirement will have access to 36 hours of subsidised care per fortnight
  • Recipients of Carer Allowance will have access to 72 hours of subsidised care per fortnight
  • Other types of activity as assessed by Centrelink as maintaining or improving work skills

You may get a higher Child Care Subsidy if you have more than one child aged 5 or younger in care. The amount of subsidised child care you can access per fortnight applies to each child.

How much is the higher subsidy? 

Services Australia works out which children get the higher subsidy by assessing all children in the family, identifying the standard rate child, and identifying the higher rate children.

Eligible higher rate children get a 30% higher subsidy, up to a maximum of 95%. Families will continue to receive their income-tested CCS rate for all children. Children eligible for the higher rate will have the increase automatically included in their CCS percentage reported to services.

Additional Childcare Subsidy (ACCS)

Families may also be entitled to Additional Childcare Subsidy (ACCS). 

To be eligible for Additional Childcare Subsidy, you must be eligible for Child Care Subsidy, and you need to be 1 of the following:

  • an eligible grandparent getting an income support payment
  • transitioning from certain income support payments to work
  • experiencing temporary financial hardship
  • caring for a child who is vulnerable or at risk of harm, abuse or neglect.

At Ignite, we want you to feel as best supported as possible, reducing any out-of-pocket expenses. As a registered and approved Childcare Service, we have access to all Government Childcare Fee Subsidies. Our helpful team is also ready and willing to assist in clarifying any questions you may have regarding eligibility.

Please feel free to contact our Family Relationships Team for all your questions relating to Childcare Subsidy and our enrolment process.

 

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