Your income can affect it
The Child Care Subsidy percentage you’re entitled to depends on your family’s income.
The Australian Government announced changes to Child Care Subsidy (CCS) from July 2022. These changes are subject to the passage of legislation. Read more about these proposed changes on the Department of Education, Skills and Employment website.
We'll work out your Child Care Subsidy (CCS) percentage using your family income estimate.
|Your family income||Child Care Subsidy percentage|
|$0 to $69,390||
More than $69,390 to below $174,390
Between 85% and 50%
|$174,390 to below $253,680||
|$253,680 to below $343,680||Between 50% and 20%
The percentage goes down by 1% for every $3,000 of income your family earns
|$343,680 to below $353,680||20%|
|$353,680 or more||0%|
You can still claim this subsidy even if your family income estimate is $353,680 or more. If you actually earn less than this, we’ll pay you the subsidy you’re entitled to. We’ll do this when we balance your payments at the end of the financial year.
If your family earns $189,390 or less, you won’t have an annual cap on your subsidy.
If your family earns between $189,390 and $353,680 we’ll cap your subsidy. This means we’ll subsidise your fees up to the annual cap of $10,560 per child each financial year.
We’ll withhold 5% of your subsidy. This is to help reduce the likelihood of you getting an overpayment. You’re able to vary this amount to suit your circumstances.
You can do this up to twice a year using your Centrelink online account through myGov. If you’d like to change it more than this, call the Families line.
We use your family income estimate to work out how much subsidy you’ll get. This means at the end of each financial year we’ll balance your payments using your actual adjusted taxable income. We compare this information to make sure we’ve subsidised your child care fees correctly in the financial year.
If you underestimated your family income, you may end up with an overpayment which you’ll need to pay back. We’ll use the amount we withheld to help reduce the debt.
If you have a CCS overpayment, we may use some of your CCS each fortnight to pay this back. The easiest way to repay money is by using the Money you owe service. This is available in either your Centrelink online account through myGov or your Express Plus Centrelink mobile app. Read more about the steps you can take if you’re ready to start repaying the money you owe.
If you overestimated your family income and didn’t get enough subsidy, we’ll pay any outstanding amount directly to you. This will include the amount we withheld.
We use your family income estimate to work out how much family assistance to pay you. This includes Family Tax Benefit (FTB) and Child Care Subsidy (CCS).
We use your adjusted taxable income to work out your eligibility for some payments or services.
What you claim determines how we work out your adjusted taxable income.
We compare your income estimate with your actual income at the end of each financial year. This is to make sure you get the right amount of subsidy.
After the end of the financial year we balance your payments to make sure we pay you the right amount.
To help you find out what you need to do to balance your family assistance based on your circumstances.
When you get Child Care Subsidy (CCS) you must confirm your family’s income after the end of each financial year. There are time limits for how long you have to do this.
Page last updated: 24 February 2021
This information was printed 13 May 2021 from https://www.servicesaustralia.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get/your-income-can-affect-it. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.