What is the childcare subsidy?

Confused about the child care subsidy and what it means for your family? Let us explain it for you...

Entering early education can be a daunting process and quite confusing. Many of our families have questions about how the childcare subsidy is calculated. The childcare subsidy (CCS) is a government subsidy that provides financial assistance for Australian families to assist with costs. The amount of funding you receive depends on your family’s individual circumstances.

The amount you receive depends on your income, activity level, and the hourly rate your provider charges. The CCS will calculate higher if you have more than one child in childcare. To estimate how much your family will receive, please click here to use this simple CCS calculator.

Understanding the CCS can be complicated, so we have broken it down. If you have any further questions, please contact one of our friendly team at Genius.

Read about the CCS and Paid Parental leave changes happening in July 2023!

Combined Family Income

Your combined family income will determine how much CCS you receive. If your income changes, contact Centrelink and let them know. This can be done by calling them on 136 150, logging into your MyGov account and updating online or using the Express Plus Centrelink app. Please see below the percentages of CCS for 2023.

Your family income

Child Care Subsidy percentage

**Your income can affect Child Care Subsidy - Child Care Subsidy - Services Australia

Level of Activity

The CCS is also calculated from your family's level of activity. Level of activity is the amount of time your family contributes to the Australian economy, both paid and unpaid. This is calculated from the family member who contributes the least amount of hours per fortnight. 

There are 4 activity levels.

**Activity level and subsidised care for Child Care Subsidy - Child Care Subsidy - Services Australia

What is considered 'activity.'

You might wonder what is considered ‘activity’. Below is a breakdown of activity types.

  • Work you are paid for includes lunch breaks and time between dropping your child at the centre and picking them up. 
  • All job types across all industries 
  • Authorised leave – for example, maternity leave, annual leave and long service leave
  • Up to 6 months of unpaid leave
  • Unpaid work for your family business
  • Time spent setting up a business which has not started to operate yet
  • Training and study
  • Internships/work experience, either paid or unpaid
  • Volunteering 
  • Job seeking – including contacting businesses, applying for employment and preparing resumes

Childcare Hourly Rate

When calculating the CCS you will receive, your childcare provider’s hourly rate is the third and final factor. The CCS is calculated on whichever is the lowest:

  • The Centre’s hourly fee (which is the daily fee’ divided by hours of operation), or
  • The Hourly Rate Cap of $12.20 per hour. 

If you have read this document and are still unsure or have further questions, please contact a Genius team member, and we can assist you.

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