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What are the changes to the child care subsidy?
21 June, 2023
From July 10 2023, there are two main changes to the way the Government calculates the Child Care Subsidy (CCS) which means child care fees will be cheaper for most families.
What is the Childcare Subsidy?
The federal government offers parents fee assistance in the form of the Child Care Subsidy. It is designed to make early learning and childcare more affordable for Australian families. The percentage you are entitled to depends on your family’s circumstances.
Child Care Subsidy Changes 2023
Childcare is becoming more affordable for many families. Most families will be eligible for more subsidy, and some families previously not eligible for CCS will become eligible. The following changes come into effect from July 10th 2023;
- If your family’s household income is under $530,000, your Childcare Subsidy will increase. Currently, the cut-off is for families earning $356,756 or more.
- The income limit to get the maximum Child Care Subsidy is also increasing. Families earning up to $80,000 will get an increased maximum CCS amount, from 85% to 90%.
- If you earn over $80,000 you may get a subsidy starting from 90%. This will go down by 1% for each $5,000 of income your family earns. You’ll either get more subsidy or have no change to your entitlement.
If you have more than one child aged 5 or under, you can still get a higher rate for one or more of your children with the new Child Care Subsidy 2023.
- The low-income limit for Additional Child Care Subsidy Transition to Work will also increase to $80,000.
Childcare Subsidy Changes for Aboriginal and Torres Strait Islander Children
From July 10th 2023, Families with Aboriginal and Torres Strait Islander children will be eligible for at least 36 hours of subsidy per fortnight for each child attending care. This is regardless of your family’s income or activity level.
To take advantage of the increased hours, call the Centrelink families line (13 61 50) to update your details and let them know a child in your care is an Aboriginal or Torres Strait Islander person.
What you need to do before July
- If you already get CCS, you don’t need to do anything to get the increased rate. However, we encourage you to check your family income estimate and make any necessary adjustments before July 10, this will ensure you receive the maximum subsidy for your family. To check this, visit servicesaustralia.gov.au/familyincomeestimate.
- If you are now eligible for the Child care 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!
- Speak to your Centre Director now if you are thinking about picking up additional days or enrolling a new child. We are anticipating that the changes to the Childcare Subsidy will cause an increased demand for child care, and therefore, we encourage you to confirm your bookings well before July 10. Changes to your enrolment are subject to the availability of places. Please speak to your Centre Director as soon as you are thinking about the change so that we can do our best to accommodate you and your family.
What does this mean for your family?
- The changes will make early childhood education more affordable and accessible for many families living in Australia.
More affordable childcare may help support more parents and carers to increase their workforce participation.
For the full details around the changes to CCS and to confirm your eligibility and subsidy estimate visit the Services Australia website.
Edge Early Learning is an approved CCS provider with a holistic early learning experience and inquiry-based approach. Our Educational programs support and enhance learning milestones and journeys across all areas of development through its four pillars, education, wellbeing, relationships, and sustainability.
If you would like to find out more, contact one of our friendly team members or book a tour at your local Edge Early Learning Centre today!