The Department of Education has announced a range of changes to the Child Care Subsidy (CCS), which will be introduced incrementally from December.
The government says these changes are being made to help families who pay the most and who experience the biggest barriers to participation in work.
What’s happening?
Two big changes are on the way:
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From 10 December 2021, the annual CCS cap will be removed for all families. Up until now families earning more than $190,015 have been subject to an annual subsidy cap of $10,655 per child each financial year, this no longer applies.
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From 7 March 2022 families with multiple children aged five or under in care will receive a higher subsidy for their eligible younger children, of 30 per cent up to a maximum of 95 per cent.
Families may be eligible for this higher rate if they earn less than $354,305 and have more than one child (five or younger) in child care.
Services Australia will work out which children receive the higher subsidy by:
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assessing all children in the family unit
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identifying the standard rate child
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identifying the higher rate children.
The standard rate child will get the standard CCS subsidy. Younger children will get a higher subsidy. The standard rate child is the eldest child in the family unit aged five or under who is eligible for CCS and attending care.
Children eligible for the higher CCS rate will have the increase automatically included in their CCS percentage reported to services.
What you need to do?
The great news is families already receiving the CCS don’t need to do anything to qualify for these changes and will be eligible for the higher rate from 7 March 2022.
For families new to CCS, a child must attend a session of care before they can be considered the standard rate child.
You can learn more about these changes here.
