How Much is the Childcare Subsidy (CCS)?

Childcare can be expensive, but with the help of the Australian Government’s Child Care Subsidy (CCS) it becomes a lot more accessible. Find out how the CCS reduces the cost of childcare for parents and families and learn more about calculating your expected subsidy with Edge Early Learning.

What is the childcare subsidy (CCS)?

Launched in 2018 by the Australian Government, the CCS ensures that childcare is more affordable for Aussie families. Edge Early Learning is a CCS-approved childcare service, meaning part of your out-of-pocket costs will be covered. To find out how much the childcare subsidy might be for you, read on.

How does the childcare subsidy work?

The CCS is granted to providers who pass the subsidy on to families as a fee reduction. To be eligible, you must care for a child who is 13 or younger who is not attending secondary school, use an approved childcare service (like Edge!), be responsible for paying the childcare fees and meet residency and immunisation requirements. You can find out more right here.

How much of the childcare subsidy (CCS) will I get?

The subsidy you will receive is dependent on your circumstances, and you must make a co-contribution by paying the gap fee. There are also some exclusions worth noting – for example, if you are receiving an additional childcare subsidy for child wellbeing or as grandparents.

Family entitlements are used to assess eligibility, and depend on three factors:

• Combined annual family income, which can be calculated using this table.
• Activity level, which can be determined using this table. To view the list of recognised activities and exemptions, head here.
• Type of childcare used.

There is an annual cap of $10,560 per child if your family earns between $189,390 and $353,680, and it is also important to mention that five percent of your subsidy will be withheld to reduce overpayments.

How to calculate the childcare subsidy?

Wondering how to work out the childcare subsidy percentage? An estimate of the childcare subsidy can be found by filling out the Centrelink payment and service finder here.

Changes to the childcare subsidy 

In 2022, the Australian Government announced that they will be increasing the subsidy for families with multiple children and removing the $10,560 per child annual cap for all families. This means your CCS will increase by 30% (capped at 95%) for your second and subsequent children in care, if your family earns under $353,680 per year.

How to apply for the childcare subsidy (CCS)

Looking to apply for the childcare subsidy? You should apply early – before your child’s start date – through your MyGov website. Once you are enrolled with Edge, our team will lodge the application and will be able to give more information about your entitlements.

Find out how to apply for the childcare subsidy!

What happens after your childcare subsidy is approved?

Families must balance the childcare subsidy at the end of each financial year. This involves declaring your estimated income at the beginning of the year and balancing it at the end of the year, to ensure you are paid the correct amount of CCS.

If you don’t confirm your income within 12 months after the end of a financial year, you will lose your CCS and have to pay full fees for childcare. If you receive additional CCS (ACCS), you’ll also lose those.

If you still haven’t confirmed your income two years after a financial year ends, you may have to repay any CCS you received for that financial year. You will no longer be eligible for CCS or ACCS and will need to make a new claim if you wish to get a reduced fee again.

Families can confirm their come by lodging their tax return or telling Services Australia they don’t need to lodge a tax return. Additional action will need to be taken by parents who have separated from their partner/s, which you can find out more about right here.

Now that you know everything you need to about the CCS, get in touch with Edge Early Learning to get the ball rolling or ask any further questions. You can find your local centre right here.

Additional Childcare Subsidy Scheme FAQs

What does CCS mean?

CCS stands for the Child Care Subsidy and refers to an initiative from the Australian Government to reduce childcare costs for Australian families and caregivers.

What is CCS balance?

Balancing refers to the process Services Australia conducts where they compare a family’s income estimate with their actual income to confirm they got the correct amount of Child Care Subsidy. This is done separately from the balancing of any Family Tax Benefits (FTB).

When does CCS get balanced?

The CCS gets balanced at the end of each financial year by Services Australia.