How Much Child Care Subsidy (CCS) Can I Get?
If you’ve started looking into childcare costs, this is probably one of the first questions that comes up: “How much Child Care Subsidy will my family actually get?”. The honest answer is - it depends. But most families are eligible for some level of support.
While the system can sound a little complex at first, the answer to “how much” you can get is clearer when divided into two parts:
- how much of the childcare fee the government will cover (your CCS percentage)
- how many hours of care the government will subsidise (your subsidised hours)
Let’s break that down in a simple, practical way.
CCS percentage (how much is covered)
One of the biggest factors affecting your subsidy is your combined family income. In general:
- lower-income families receive a higher CCS percentage
- middle-income families receive a moderate percentage
- higher-income families may receive a lower percentage or no subsidy
This percentage is the portion of your childcare fee the government may cover. For example:
- If your CCS percentage is 70%, the government may cover 70% of the eligible fee
- You pay the remaining 30% (the “gap fee”)
A small but important detail
Your CCS percentage is only applied up to the government’s hourly rate cap. If your childcare service charges above that cap, you’ll pay the difference - that is, a higher “gap fee”. This is why two families with the same CCS percentage can still pay different out-of-pocket costs.
What can reduce your CCS amount?
Even if you’re eligible, a few factors can affect how much subsidy you actually receive:
The CCS hourly rate cap
The government sets a maximum hourly rate it will subsidise. If your service charges more than this, you’ll pay the extra.
Absence days
CCS is generally paid for up to 42 “allowable absence” days per child, per financial year. After that:
- you may need to pay full fees
- unless special circumstances apply
Changes to your income
Your CCS percentage is based on your estimated annual family income. If your income changes during the year, your subsidy may be adjusted. This is why it’s important to keep your details up to date with Centrelink - it helps avoid “you owe money to Centrelink” surprises later.
How CCS looks in real life
Because CCS is based on several factors, the amount families receive can vary quite a bit.
Lower-income families
May receive a higher CCS percentage, meaning:
- a larger portion of fees is covered
- out-of-pocket costs are lower
Middle-income families
Many families fall into this group. CCS can still cover a significant portion of fees, but you’ll usually pay a larger gap than lower-income families.
Higher-income families
May receive:
- a lower CCS percentage
- or in some cases, no subsidy (for very high income families)
How to get a personalised estimate
Because every family is different, the easiest way to understand your situation is to use a calculator. Try the Care for Kids CCS Calculator to estimate:
- your likely CCS percentage
- how much subsidy may apply
- your expected out-of-pocket costs
You’ll just need a few details:
- your family income
- your child’s age
- your expected childcare hours
- the postcode where your child will likely attend care
- your fortnightly activity hours (this is used to determine if you may be eligible for more than 72 hours under the “3 Day Guarantee”)
A simple way to think about CCS
If CCS feels complicated, here’s the simplest way to look at it:
- most families receive some level of support
- the exact amount depends on your situation
- your final cost is influenced by both your subsidy, your childcare provider’s fees and the government’s hourly rate cap
When talking about “how much” CCS you could get, the answer is two part:
- how much of the childcare fee the government will cover (your CCS percentage)
- how many hours of care the government will subsidise (your subsidised hours)
You don’t need to work it all out perfectly upfront - just getting a rough estimate is a great first step as you start exploring your childcare options.
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