Understanding changes to how much Child Care Subsidy (CCS) we pay

30 October 2019

Sometimes, the amount of CCS we pay to your child care service changes. Find out why this happens.

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You may first notice a difference when your out-of-pocket child care fees change. There are 4 main reasons how much we pay your service might differ:

  1. Your CCS rate changes.
  2. How much CCS we’re withholding changes.
  3. You’re repaying an overpayment.
  4. You’re no longer eligible for the subsidy.

1. CCS rate

Your CCS percentage and hours of subsidised care depend on:

If there are changes to any of these, the amount you get may change too.

2. Withholdings

When you get CCS we automatically withhold 5% of your subsidy. We do this to give you a buffer at the end of the year when we balance your payments. You can choose to increase your withholdings at any time. If you do, your out-of-pocket fees are likely to increase. But, you’ll have a larger buffer when we balance your payments.

3. Overpayments

We may also use some of your CCS if you owe us money for child care fee assistance. If you owe us money, we’ll send you a letter to let you know. This will include your repayment options. If you don’t repay the amount in full, we’ll automatically recover the debt using either:

  • your primary Centrelink payment
  • your CCS.

If we use your CCS to repay money you owe, it’ll be on top of the 5% we automatically withhold. For example, if we use 20% to repay the overpayment, your total weekly CCS will be reduced by 25%.

4. Eligibility

You may no longer be eligible for CCS if:

If you’re no longer eligible, your CCS will stop. You can keep using child care, but you won’t get CCS and you’ll need to pay full fees.

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Page last updated: 31 October 2019