Entitlement for Child Care Subsidy (CCS) 007-17103113

Combined family income^

Standard Child Care Subsidy percentage

$0 to $83,280

90%

More than $83,280 to below $533,280

CCS percentage reduces by 1% for each $5000 of family income

$533,280 or more

0%

Combined family income

Child Care Subsidy percentage

$0 to $141,321

95%

More than $141,321 to below $186,321

Between 95% and 80%

The percentage goes down by 1% for every $3,000 of income your family earns

$186,321 to below $265,611

80%

$265,611 to below $355,611

Between 80% and 50%

The percentage goes down by 1% for every $3,000 of income your family earns

$355,611 to below $365,111

50%

$365,611 or more

Families with income equal to or above $365,611 are not eligible for a higher rate for second and younger children. Their CCS rate for all children will be calculated using the standard income test.

Item

Description

1

CCS eligible family with two children attending care, income below the HCCS LIT

Carmel and Ali have two children aged 5 or under, Mauve and Xena, both attending centre based day care.

Carmel and Ali have a combined family income estimate of $70,000 a year.

Mauve is 5 years old, and is considered a standard rate child. Xena is 2 years old, and is considered a higher rate child and eligible for a higher rate of CCS.

Based on their income, Carmel and Ali will get a subsidy of 90% for Mauve as their family income is below the CCS Lower Income Threshold (CCS LIT). For Xena, they will get a higher CCS rate of 95% as their family income is below the Higher CCS Lower Income Threshold (HCCS LIT).

2

CCS eligible family with two children attending different child care centres

Luca has 2 children, Joseph and Gianni, who attend different child care centres. Luca and Luca’s partner have a combined family income of $254,305 a year.

Joseph is 5 years old and considered the standard rate child because Joseph is the eldest child aged 5 or under. Gianni is 1 year old and is considered the higher rate child because Gianni is the youngest child.

Based on family income, Luca will get 55.80% subsidy for Joseph as the income is:

• above the CCS Low Income Threshold (CCS LIT) and
• below the CCS High Income Threshold (CCS HIT)

For Gianni, who is the higher rate child, Luca will get a higher subsidy rate of 80% as income is within the 2nd Higher CCS Threshold

It doesn’t matter that Joseph and Gianni attend different child care centres. They meet all of the other criteria for higher subsidy. Therefore, Luca is eligible for a higher rate for Luca’s second eligible child.

3

Combined family

Rani and Tavish are in a combined family where they each have children from past relationships. They are both current for CCS and between them they have 3 children aged 5 and under. Rani has 2 children, Lila and Nathan. Tavish has one child, Kiara. Rani and Tavish have a combined income of $120,000 a year.

Lila is 5 years old and is considered the standard rate child because Lila is the eldest child aged 5 or under in the family. Nathan and Kiara are both 3 years old and are considered the higher rate children because they are younger than Lila. Services Australia automatically assess Rani and Tavish as a combined family.

4

Family with three CCS eligible children, one child aged 7 and two children aged under 5 with a combined income of $400,000

Tony and Viv have three children, Gabi, Adam and Joel. Gabi aged 7 who attends after school care, Adam aged 4 and Joel aged 2 who both attend centre based day care.

They have a combined family income of $400,000 a year which is above the higher CCS higher income threshold (HCCS HIT)

Tony and Viv have two children aged 5 or under, however as their income is above the HCCS HIT, they are not entitled to a higher rate for Joel.

Based on their combined family income, Tony and Viv will get a standard CCS percentage of 26.66% for Gabi, Adam and Joel.

Hours of recognised activity per fortnight

Maximum number of hours of subsidised child care per CCS fortnight

Less than 8 hours

0 hours if the customer earns above the Low-income threshold

24 hours if the customer earns below the low -income threshold

36 hours - Aboriginal and Torres Strait Islander children

8 hours to 16 hours

36 hours

More than 16 hours to 48 hours

72 hours

More than 48 hours

100 hours