How to claim child care subsidy

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on March 08, 2022 Fact Checked
How to claim child care subsidy

From 7 March 2022, if you have more than one child aged five or younger in care, you may get a higher subsidy.

The Child Care Subsidy (CCS) is the main way the Australian Government helps families with child care fees.

A scheduled increase for families has been brought forward.

How much higher is the new rate?

Eligible higher rate children get a 30% higher subsidy, up to a maximum of 95% based on their income. 

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.

If you’re unsure what your standard rate is, you can check it in your Centrelink online account through myGov.

Select the MENU then ‘My family’. From this menu select ‘Child Care’ then ‘Child Care Subsidy summary’. From here you’ll be able to see your CCS rate.

The table below shows the standard CCS rates, which are a percentage, based on family income for 2021–22.

Your family income Standard CCS %
$0 - $70,000 85%
$70,015 - $175,015 Between 85% and 50% The percentage goes down by 1% for every $3,000 of income your family earns
$175,015 - $254,305 50%
$254,305 - $344,305 Between 50% and 20%
The percentage goes down by 1% for every $3,000 of incomeyour family earns
$354,305 or more 0%

Source: Australian Government CCS Fact Sheet

Who is eligible for the higher subsidy?

To get the higher subsidy, a family must:

  • earn less than $354,305
  • have more than one child aged five or under in child care.

What is the Child Care Subsidy?

Approved child care providers are registered with the Australian government. The Child Care Subsidy is paid by the government to the child care provider. 

The subsidy is then passed on to families as a fee reduction. 

Families make a co-contribution to their child care fees by paying the difference between the provider’s fee and the subsidy amount (also called the out-of-pocket or gap fee).

As of 7 March 2022, the subsidy has increased for eligible families. 

This change is only for families with more than one child aged five and under in care.

How to apply

To receive the Child Care Subsidy (CCS) payment on behalf of families, child care providers must apply for CCS Approval and be granted it under Family Assistance Law. 

Information on the seven step application process can be found here. 

If you already have been receiving the subsidy, and are eligible for the higher rate, this will automatically apply for families who satisfy the eligibility criteria. 


Image by Rashid Sadykov via Unsplash

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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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