Changes to the Child Care Subsidy + Paid Parental Leave

New changes are coming to the Child Care Subsidy and Paid Parental leave in 2023! Get all the details here!

There are a range of changes being introduced to the Child Care Subsidy and Paid Parental Leave in July 2023, that could mean increased subsidies and leave for your family. Check out our summary below!

Read about current CCS and calculating your CCS prior to July 10th

Cheaper Child Care

From 10 July 2023, if your family earns under $530,000, you’ll get increased Child Care Subsidy (CCS).

The CCS percentage you’re entitled to depends on your family’s income.

The income limit to get the maximum CCS is increasing. Families earning up to $80,000 will get an increased maximum CCS amount, from 85% to 90%.

If you earn over $80,000 your CCS percentage 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.

The low income limit for Additional Child Care Subsidy Transition to Work will also increase to $80,000.

If you already get CCS, you don’t need to do anything to get the increased rate. We’ll apply changes to your CCS automatically.

Child Care Subsidy activity test changes for Aboriginal and Torres Strait Islander children

From July 2023, families with Aboriginal and Torres Strait Islander children will get at least 36 hours of subsidised care per fortnight. Families can get more subsidised hours based on their circumstances. More information about these changes will be available soon.

Paid Parental Leave changes

Subject to legislation passing, the Paid Parental Leave scheme is changing from 1 July 2023. If your child’s birth or entry into care is on or after this date, these changes will affect you.

On 1 July 2023, Parental Leave Pay and Dad and Partner Pay are combining into one payment. It will increase from 90 days (18 weeks) to 100 days (20 weeks). The total Parental Leave Pay available to families will then increase by 2 weeks each July. This is until 2026 when it will be 130 days (26 weeks).

A combined family income limit will also be introduced. A family’s combined adjusted taxable income must be $350,000 or less per financial year. The existing individual income limit of $156,647 will not change.

If a person does not meet the individual income limit, then the combined family income limit will be applied instead. This will happen even if you’re partnered or a single parent.

Parents can use Parental Leave Pay until a child turns 2. Parents can share their Parental Leave Pay with each other and they can even take days at the same time. This can be at the same time as paid leave, and between periods of paid work. This will give families more flexibility to manage their work and care arrangements.

Part of Parental Leave Pay will be reserved for each parent to use. Any unused portions of Parental Leave Pay days will be lost if not used before a child turns 2. This is to encourage both parents to access the payment. Single parents will be able to get the full amount of Parental Leave Pay.

Special circumstance exceptions to the work test

You may now meet the work test for Parental Leave Pay and Dad and Partner Pay. This is if your ability to work during the work test period was affected by any of the following:

  • family and domestic violence
  • a serious medical condition, for either you or an immediate family member you care for
  • a natural disaster declared by the Commonwealth or a state or territory.

Get more information on these changes via the Services Australia website

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