About the Childcare Subsidy

What is the Childcare Subsidy (CCS)?

Child Care Subsidy (CCS) is the payment made by Government to assist eligible families reduce the costs of child care. The subsidy is paid directly to the childcare service which then reduces the fee which the family has to pay (the gap fee).

How do families apply for the Childcare Subsidy?

Families have to apply for CCS through Centrelink (Services Australia). Families will need to supply the following information to have their eligibility assessed:

  • Family income estimates
  • Family activity assessment
  • Child primary school status

It is important to note that families must also meet Australian residency rules, and children have to be immunised to be eligible for CCS.

How does CCS work?

For eligible families, their subsidy is paid directly to the childcare service which then reduces the fee which the family has to pay (the gap fee). CCS is calculated in fortnightly periods, and will subsidise a family up to their eligible hours, and reduce their fees by their eligible CCS percentage. The government will always withhold a minimum of 5% of the subsidy paid for the family.

Other things to consider for the Childcare Subsidy to apply

Below are some other CCS rules which families must follow to continue to be eligible for CCS:

  • Families must confirm their enrolment notice in MyGov for CCS to commence. This will appear in the family’s MyGov account once their child is enrolled into the childcare service.
  • The child must attend their first booked day of care. If they don’t, Centrelink will not pay CCS on any booked days up to when the child actually attends.
  • Each child has 42 days of allowable absences where CCS will be paid. If a child exceeds the 42 days, CCS will not be paid unless it meets the additional absence criteria.
  • Upon ceasing an enrolment, the child must attend their last booked day of care or CCS will be recovered from the last booked day of care to the child’s last actually attended day.
  • If a child’s immunisation is not up to date, CCS may be ceased.
  • Centrelink (Services Australia) may take back CCS if a family’s tax assessment is not completed for prior financial years.
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