Child Care Subsidy (CCS)
What is the Child Care Subsidy?
The Child Care Subsidy is a government payment that reduces families out-of-pocket costs for childcare.
Each family’s Child Care Subsidy covers a percentage of the childcare centre’s daily fees.
This subsidy percentage is paid directly to childcare providers and then passed on to families as a fee reduction on their invoice. Families pay the gap between the daily fees charged and the subsidy amount.
Pearls of Wisdom Early Learning Centre is registered for the Child Care Subsidy (CCS). If you’re new to childcare, we recommend that you apply as soon as possible. For more information, you can visit Services Australia.
What Factors Impact Eligibility?
- Combined Household Income
- The activity level of your family (e.g. hours of paid work, volunteering, studying, self-employed work, actively job seeking)
- The type of childcare service you are enrolled in (Pearls of Wisdom Early Learning Centre is an approved Centre Based Day Care Provider)
- The fees you pay for childcare (hourly rate caps apply for each type of service)
Confirming Your Child's Enrolment
Before Child Care Subsidy can be paid, families must confirm their child’s enrolment details in the Centrelink App.
Before you confirm your child’s enrolment, please check that the fees and care sessions match your enrolment details.
Please note that the enrolment start date displayed on your Centrelink account is the date the enrolment was submitted to Centrelink. This is done to ensure that families receive their Child Care Subsidy from the child’s start date.
If the information or fees in the enrolment details don’t match your enrolment details, speak to the Centre Director.
New Changes to the Child Care Subsidy
From 10 December 2021, families earning more than $190,015 per year will no longer be subject to the annual subsidy cap of $10,655 per child each financial year.
From 7 March 2022, families with children aged five or under in care will get a higher subsidy for their second child and younger children. Younger children will receive up to an additional 30 percent subsidy to a maximum of 95 percent. Families may be eligible if they earn less than $354,305 per year and have more than one child in care.
Families already getting CCS don’t need to do anything. Services Australia will automatically increase the CCS for eligible second and younger children.
Absences and the Child Care Subsidy
The Child Care Subsidy allows for 42 absence days per financial year. Absence days can be used for the days your child would normally attend care and receive CCS.
Reasons may include public holidays, family vacations, and sick days. No evidence is required to claim CCS for these days. Gap fee payments are still applicable.
If families exceed 42 absences, they may be eligible to receive additional absence days. Additional absences require supporting documents to be supplied to Centrelink, such as a Doctor’s Certificate.
Please note that your child must be physically attending the centre on their first and last day of their enrolment to be eligible to receive the Child Care Subsidy.