What You Need To Know About Child Care Subsidy

For several households, the Child Care Subsidy (CCS) is a great benefit. However, its system’s complexity sometimes ends up making it somewhat difficult to comprehend. It isn’t always easy to understand, including among those who are employed in the field. Here is a helpful guide if you’re looking for everything about child care subsidy and exactly what it implies for families.

What is the Child Care Subsidy

The Federal Government funds the Child Care Subsidy, which was created to assist Australian households in paying for childcare services. It displaced the prior child welfare assistance program termed the Child Care Rebate and became effective on July 2, 2018.

Family members must meet certain requirements to become eligible for the subsidy. This subsidy can be used for registered or licensed child care providers only. Additionally, it is income-based, meaning the amount of subsidy you get varies according to how much money your household makes.

Child Care Subsidy Eligibility

It’s crucial to remember, however, that not all parents who entrust their children to daycare are qualified for such a CCS. Families must conform to a number of qualification criteria, including those related to citizenship and immunizations.

First, you or your spouse should be an Australian citizen or a permanent resident who resides in Australia in order to qualify for residency. Additionally, there are a number of exceptions to the residency requirements for other types of visas.

Next are age restrictions. Children in secondary high school are not eligible for the child care subsidy anymore. It is only until 13 years old or younger, or for those who suffer from a disability and are between the ages of 14 and 18.

There are also requirements for immunizations. Your child should be current on all vaccinations listed on the National Immunization Program Schedule or have a medically indicated exemption.

Lastly, the centre where your child receives care should be accredited by or authorized by the Australian government.

How does the Childcare Subsidy work?

The government will reimburse your child care provider directly with the subsidy if it has been determined that you are eligible for the Child Care Subsidy. Just the difference remains due after this payment has been subtracted from your overall charges.

Take this, for instance, if your daily rates are $100 and you qualify for a 45% subsidy, the government would send your provider $45 straight and you’ll be responsible for paying the remaining $55.

How is the childcare subsidy calculated?

The Child Care Subsidy amount is determined by the estimation of your average annual household income that you submit. Typically, you can use your prior year’s pay or income tax return as a basis for this. The government then conducts a reconciliation reflecting your overall income for the year at the close of the fiscal year once you have filed your income tax form.

Additionally, the government deducts 5% per week of your CCS to help support any possible sums you might owe at the conclusion of the fiscal year. You will be obligated to pay the amount back to the government, assuming you miscalculated your earnings and are actually qualified for a lower CCS rate.

You can calculate your subsidy percentage using an online calculator for child care subsidies.

Applying for the Childcare Subsidy

Instead of going via the child care provider, you had chosen, you must apply for the CCS directly via the myGov Account. The steps to apply for the subsidy are as follows:

Visit the myGov website first. After that, access your account. Make one if you have none. Browse to Centrelink after logging in. Then select “Get started” from the families category. Additionally, complete all of the questions by following the directions. You must be prepared with your salary details. Lastly, click “Submit.”

Child Care Subsidy Assessment

Every application will be evaluated by Centrelink, which will also send an appraisal letter stating your entitlements. It’s critical to make sure that the information you provided was as correct as possible because the assessment will be reliant on it.

Your evaluation will reveal your subsidy percentages as well as the amount of subsidized child care you are eligible for every child per two weeks. Based on how many hours you put in at work —  both compensated and uncompensated — studying, volunteering, and other activities.

You must disclose both your CRN plus your children’s CRN to the child’s daycare after you obtain this assessment document. This is available in your myGov account, which will be provided to you after you submit your application.

Your service provider will next integrate your Centrelink account as well as additional information about your child’s enrollment. After doing this, Centrelink will send a notification asking you to sign in and confirm the enrollment notification.

The Preschool Exemption Program

The activity test helps establish the subsidized hours of childcare you are qualified to get for your kid, as well as if you are qualified to apply for the preschool exemption program.

This might also allow you to enrol a preschool-aged kid in a child care setting at a centre-based facility for subsidized care of 36 hours in two weeks. The CCS assessment document will inform you if you are eligible for zero or 24 hours of subsidized childcare and might also be eligible for 36 hours.

Talk to the facility about filling out a “preschool indicator.” Centrelink then determines your eligibility if they say your child attends an early education program. Applicants must first fulfil the CCS eligibility standards and have a preschool-aged child to be eligible for this exemption.

What is Additional Child Care Subsidy?

The purpose of the Additional Kid Care Subsidy (ACCS) is to eliminate obstacles that can limit a child’s access to early childhood care. For children and their families who really are legitimately underprivileged, it is an additional degree of assistance.

Grandparents who will be the primary caregivers for their grandchildren are among the situations when ACCS may be applicable. It might also be a brief financial crisis. Another example is parents returning to the workforce after receiving economic support. It is also used when the child’s safety is in danger.


Overall, applicants of Child Care Subsidy, Preschool Exemption Program and Additional Child Care Subsidy must first meet the eligibility standards to be eligible for these benefits. The government has solid standards for the implementation of this program and is even keener on providing good support for children and families.