Why the amount of Child Care Subsidy (CCS) we pay changes

13 July 2020

There are 4 main reasons why the amount we pay your child care service may change.

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

1. Your CCS rate changes

Your CCS percentage and hours of subsidised care depend on:

Every July we:

  • update the family income thresholds, annual cap and hourly rate caps to match Consumer Price Index (CPI) changes
  • start using your family income estimate for the new financial year.

These updates mean you could get more or less CCS from July.

We’ve eased the activity test for CCS between July and October 2020. This means some families affected by coronavirus (COVID-19) can get extra hours of subsidised care.

2. You change your withholding amount

When you get CCS we 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. You’re repaying an overpayment

We may also use some of your CCS to repay money you owe us for child care fee assistance.

During COVID-19, we’ve paused some debt activity. This means if we were using your CCS to repay a debt, we’ll stop. Once the debt pause ends, if you still owe us money, we’ll start withholding amounts from your CCS again.

4. Your eligibility changes

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’ll need to pay full fees.

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Page last updated: 30 September 2020