CHILDCARE SUBSIDY EXPLAINED

If your child is coming to care for the first time, we know that this process can be overwhelming. Not only is it imperative for you to find the right centre that suits the needs of your family, but it also means understanding how the Child Care Subsidy process works.

There is a lot of helpful information on the education.gov.au website and below is a summary of what the Child Care Subsidy is along with some helpful resources.

The Child Care Subsidy (also known as CCS) is the main form of assistance provided by the Australian Government to support families with their childcare fees. The Child Care Subsidy is a single, means-tested subsidy that is generally paid directly to childcare providers and is managed by Centrelink services.

The subsidy method is simpler than the previous multi-payment system and provides more assistance to low- and middle-income families. There are three factors that determine a family’s level of Child Care Subsidy, these are:

  • Combined annual family income
  • Activity test– the activity level of both parents
  • Service type– type of childcare service and whether the child attends school

Families make a co-contribution to their childcare fees and pay to the provider the difference between the fee charged and the subsidy amount.

The Services Australia website has step by step instructions on how to apply for the Child Care Subsidy. For more information, please contact our friendly team or you can contact Centrelink families directly between Monday to Friday on 136 150.

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