How is my Child Care Subsidy (CCS) calculated?

You’ve worked out that your family is probably eligible for Child Care Subsidy (CCS). But now you’re wondering: 

“How does the Government actually work out how much CCS my family gets?”

It helps to start by understanding that your subsidy is calculated in two parts:

• how much of your childcare fees the Government will subsidise (your CCS percentage)
• how many hours of childcare can be subsidised (your subsidised hours)

Because every family’s situation is different, CCS is calculated individually based on:

• your combined household income
• your “recognised participation” level

If you have more than one child aged 5 or under in care, this can also impact CCS calculations. Let’s take a closer look at these factors.

Combined household income

Your combined family income helps determine your CCS percentage. This is the percentage of your childcare fees the Government may subsidise on your behalf.

In general:

• lower-income families receive a higher CCS percentage
• higher-income families receive a lower CCS percentage

How income is assessed

When you apply for CCS through Services Australia, you’ll be asked to estimate your family/household income for the financial year.

This may include:

• your income
• your partner’s income (if you have one)
• certain taxable benefits

Based on this estimate, Services Australia calculates your CCS percentage.

Remember: it’s okay if your estimate changes later. If your circumstances change, you can update your income estimate through your myGov Centrelink account during the year.

At tax time, Services Australia compares your estimate with your actual income and adjusts your CCS if needed.

Recognised participation level

The second part of CCS is: how many hours of childcare can be subsidised. This is based on your recognised participation level. Recognised activities can include:

• paid work
• self-employment
• parental or maternity leave
• study or training
• volunteering
• looking for work

Since the introduction of the “3 Day Guarantee”, your activity level is only considered if you are applying for more than 3 days (72 hours) of subsidised care…

The “3 Day Guarantee”

Under the “3 Day Guarantee”, families eligible for Child Care Subsidy can access up to 72 hours of subsidised care per fortnight regardless of their recognised activity level. Families with higher recognised activity levels may be eligible for up to 100 subsidised hours per fortnight. A simple way to think about it:

For families with more than one child aged 5 or under in care

If you have more than one CCS-eligible child aged 5 or under in approved childcare, your family may receive a higher CCS rate for your second and younger children. In simple terms:

• your eldest CCS-eligible child aged 5 or under is usually considered the “standard rate child”
• younger children may receive a higher CCS percentage 

The exact amount depends on your family income and circumstances, but for many families, having more than one young child in care can significantly reduce out-of-pocket childcare costs for younger siblings.

Services Australia calculates the higher subsidy automatically if your family is eligible and siblings do not need to attend the same childcare service for this to apply.

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