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In Home Care (IHC) for Child Care Subsidy (CCS) 007-17103119



Entitlement scenarios - Determining a customer’s entitlement

This table contains examples of how Child Care Subsidy (CCS) and Additional Child Care Subsidy (ACCS) is applied to determine a customer’s entitlement.

Note: The IHC rate cap used ($32.00) is current from 1 January 2019, and subject to CPI increases each financial year. For the period 2 July to 31 December 2018, the IHC hourly rate cap was $25.48.

These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.

Item

Scenario

1

CCS entitlement – hourly rate above IHC hourly rate cap

Kate and Imal have been assessed as eligible for CCS and have 3 children using In Home Care.

They have a combined income of $62,000 per annum, giving them an 85% subsidy. As both Kate and Imal work in a family business full time, they are entitled to 100 hours of subsidised care per fortnight.

The IHC service charged $35.00 per hour.

Their fortnightly CCS entitlement would be:

  • 85% x $32.00 (IHC hourly rate cap) = $27.20 x 100 = $2,720 per fortnight

Note: entitlement does not take into account default 5% withholdings.

2

CCS entitlement – hourly rate below IHC hourly rate cap

Chen and Naoki have been assessed as eligible for CCS and have 3 children using In Home Care.

They have a combined income of $62,000 per annum, giving them an 85% subsidy. As both Chen and Naoki work in a family business full time, they are entitled to 100 hours of subsidised care per fortnight.

The IHC service charges $30.00 per hour.

Their fortnightly entitlement would be:

  • 85% x $30.00 (the fee charged is lower than the hourly rate cap) = $25.50 x 100 = $2,550 per fortnight

Note: entitlement does not take into account default 5% withholdings.

3

ACCS – up to 120% subsidy

If a family is granted one of the following:

  • ACCS (grandparent)
  • ACCS (child wellbeing)
  • ACCS (temporary financial hardship)

100% of the fee charged, up to 120% of the hourly rate cap is payable.

Using the fees charged in examples 1 and 2 above:

  • IHC fees $35.00 per hour:
    • the family would receive $35.00 per hour entitlement, as the fee falls below 120% of the IHC hourly rate cap (120% x $32.00 - $38.40). This would give a fortnightly entitlement of $3,500 (100x $35.00).
  • IHC fees $30 per hour:
    • the family would receive $30 per hour entitlement, as the fee is below the hourly rate cap. This would give a fortnightly entitlement of $3,000.00 (100x $30.00)

Note: there are no withholdings from ACCS payments.

4

ACCS – up to 95% subsidy

If a customer is granted ACCS (transition to work), they will receive 95% of the actual fee charged, up to 95% of the hourly rate cap.

Using the fees charged in examples 1 and 2 above:

  • IHC fees $35 per hour (above hourly rate cap):
    • the family would receive $30.40 per hour (95% of $32.00=$30.40), giving a fortnightly entitlement of $$3040 (100x $30.40)
  • IHC fees $30 per hour (below hourly rate cap):
    • the family would receive $28.500 per hour (95% of the fee charged, giving a fortnightly entitlement of $2,850 (100 x $28.50)

Note: There are no withholdings from ACCS payments.

Annual subsidy cap scenario

The following is a scenario of how families can access the Child Care Subsidy (CCS) annual subsidy cap when they have multiple children attending an In Home Care (IHC) service.

Scenario:

Sam and David are shift workers and have been connected with an in home carer through an IHC support agency. They have a combined annual income of $201,000 so are subject to the CCS annual subsidy cap.

Sam lodges a claim for CCS for their three children Zander, Ryder and Holly, and is assessed as eligible for all three children. As IHC is provided at the family level the enrolment notice submitted by the IHC service will only be for one child, in this instance Zander. The session reports submitted to the agency at the family level will be linked to Zander’s record.

As Sam and David are subject to the annual subsidy cap, once this is reached for Zander, the IHC service will lodge a new enrolment for Ryder. Sam will need to confirm the enrolment notice for Ryder before CCS can again be paid. The family attendance information will continue to be submitted and will now be linked to Ryder’s record.

The same process would apply for Holly once the annual subsidy cap is reached for Ryder.

Multiple Child Subsidy (MCS) scenario

Hannah and Michael have three children, Melissa aged 4, Renee aged 3 and Jess aged 1. Due to the parents’ working commitments they need to access an In Home Carer (IHC) through an IHC support agency for Melissa and Renee, Jess continues to attend regular Centre Based Day Care (CBDC).

The family has 3 children aged 5 or under so they are entitled to the higher CCS percentage increase of 30% for Renee and Jess up to a maximum of 95%. As Melissa and Renee are attending an IHC service, the family:

  • will not be entitled to the higher CCS rate for any sessions of care Melissa and Renee attend at the IHC service
  • will be entitled to the higher CCS rate for Jess as she is attending a CBDC