What Is the CCS Activity Test? A Simple Guide
Quick summary
The Child Care Subsidy (CCS) activity test calculates your family's fortnightly hours of subsidised childcare. It's based on the time you spend on recognised activities like paid work, study, training, or volunteering. The more activity hours you do, the more subsidised care hours you can access, up to 100 per fortnight.
Key takeaways
- Determine your subsidy hours based on your family's fortnightly activities.
- Include paid work, study, training, volunteering, and even job searching.
- Use the activity level of the parent with the fewer hours for couples.
- Access up to 100 subsidised hours of care per fortnight, per child.
- Report your estimated activity hours accurately to Services Australia via myGov.
Understanding the Child Care Subsidy Activity Test
Navigating government subsidies can often feel confusing, and the Child Care Subsidy (CCS) is no exception. Many families ask us about the 'activity test' and what it means for their childcare fees. It’s a key part of the subsidy that directly impacts how much support you can receive.
We believe every family deserves to understand how these systems work so you can plan for your child’s early learning journey. This guide will simply and clearly explain the activity test, what counts as an activity, and how it all connects to your child’s time at our centres in Mooroolbark and Bayswater.
What Is the Purpose of the Activity Test?
The CCS activity test is a framework used by Services Australia to determine the number of hours of subsidised childcare your family is entitled to each fortnight. It's not about if you get the subsidy, but rather how many hours of subsidy you can get.
The core idea is to link government support for childcare with a family's participation in work, study, or other approved community activities. Essentially, the more recognised activities you and your partner do, the more hours of subsidised care you can access for your child.
It’s important to remember that the activity test works alongside two other factors: your family's combined income (which determines your CCS percentage) and the type of childcare service you use (which affects the hourly rate cap). The activity test specifically deals with the hours component of your subsidy.
What Counts as a Recognised Activity?
Many parents are surprised by the broad range of activities that count towards the test. It’s not just about paid work. Services Australia recognises many different ways families contribute to the economy and community. Your activity hours can be a combination of any of the following:
- Paid work: This includes being an employee or running your own business. It also covers periods of paid leave, such as annual leave or sick leave.
- Study and training: Enrolling in an approved course of education or study, like a TAFE course or university degree, counts.
- Unpaid work: If you perform unpaid work for a family business owned by a parent or partner, these hours are included.
- Actively looking for work: Recognised job search activities, such as applying for jobs, preparing resumes, or attending interviews, all count.
- Volunteering: Giving your time to a charitable or community organisation is a recognised activity.
- Self-employment: Time spent actively running your own business or start-up.
- Parental Leave: If you are on paid or unpaid parental leave and intend to return to work, you still meet the activity test.
A helpful tip is that travel time also counts. You can include the time it takes to travel between our childcare centre and your place of work or study. For many families in areas like Bayswater and Mooroolbark, this can add up to a few extra hours per fortnight.
How Your Activity Hours Affect Your Subsidy Hours
Once you know your total fortnightly activity hours, Services Australia places you into one of three 'steps' to determine your maximum subsidised care hours. This is calculated per child.
- Step 1: 8 to 16 hours of activity per fortnight gives you up to 36 hours of subsidised care per fortnight.
- Step 2: More than 16 hours to 48 hours of activity per fortnight gives you up to 72 hours of subsidised care per fortnight.
- Step 3: More than 48 hours of activity per fortnight gives you up to 100 hours of subsidised care per fortnight.
For families with two parents, there's a crucial rule: the activity test result is based on the parent with the lower number of activity hours. For example, if one parent works 60 hours a fortnight and the other volunteers for 10 hours, your family's activity level will be based on the 10 hours. This would place you in Step 1, with access to 36 hours of subsidised care.
There is a base entitlement for certain families. If your family’s total annual income is below a set threshold, you may be able to access up to 24 hours of subsidised care per fortnight even if you don't meet the activity test. It's always best to check with Services Australia for specifics.
Are There Any Exemptions to the Activity Test?
Yes, the government recognises that not every family’s situation fits neatly into the standard activity test rules. Certain circumstances may make you exempt from the test, meaning you can access up to 100 hours of subsidised care per fortnight without needing to report activity hours.
Common exemptions include:
- You or your partner are receiving a Carer Payment or Carer Allowance from Services Australia.
- You are a grandparent and the principal carer of your grandchild.
- You are experiencing temporary financial hardship or a family tragedy.
Children attending a preschool or kinder programme (like our fully funded Three-Year-Old Kinder programme) may also be entitled to a set number of hours of subsidy regardless of their family's activity level. For Aboriginal and Torres Strait Islander children, a minimum of 36 subsidised hours is available, regardless of family income or activity levels.
Because personal circumstances vary so much, we always advise families to speak directly with Services Australia to see if they qualify for an exemption.
How to Report and Update Your Activity Hours
You are responsible for reporting your activity hours to Services Australia and keeping them up to date. This is done online through your myGov account, which should be linked to your Centrelink account. When you first apply for CCS, you will be asked to estimate your activity hours for a typical fortnight.
It's important to provide an accurate estimate. If your work or study hours are irregular, Services Australia recommends you calculate an average over a 3-month period. If you overestimate your activity, you may be paid the correct subsidy. If you underestimate it, you might be paid less than you're entitled to. If anything changes—for example, you get a new job, change from part-time to full-time, or stop studying—you must update your details as soon as possible. Failing to do so could result in you being overpaid, which means you would have a debt to pay back.
How We Support Your Family's Journey
At Meraki, we understand that juggling work, study, and family life is a big task. Our goal is to provide a seamless, supportive, and high-quality early learning experience that works for your family. Our long hours, from 6:30am to 6:30pm, are designed to give parents the flexibility they need to meet their work and study commitments.
Our approved childcare services, including our government-funded Four-Year-Old Kinder programme, mean that your CCS can be applied directly to your fees, making budgeting simpler. With on-site chefs preparing all meals and snacks, you have one less thing to worry about in your busy schedule. Whether you're looking for care near home in Mooroolbark or closer to work in the Bayswater area, our centres are here to help.
While we can't give financial advice, our Centre Directors are always happy to help you understand the enrolment process and how CCS works with our fee structure. We encourage families looking for care in Melbourne's east, from Boronia to Wantirna, to explore our Bayswater childcare centre or our Mooroolbark childcare centre. Please get in touch if you have questions or would like to book a tour.
Frequently asked questions
What if my work hours change every fortnight?
If your hours aren't consistent, Services Australia advises using a 13-week average to estimate your fortnightly activity. It is generally better to report the lowest number of hours you expect to work to avoid being overpaid and incurring a debt. You should update your estimate in your myGov account whenever your circumstances change significantly to ensure you receive the correct entitlement.
Does travel time to and from work count towards the test?
Yes, it does. You can include reasonable travel time from your child's care centre to your place of work or study, and the return journey. For example, if you have a 30-minute commute each way, you can add one hour of travel time to your daily activity total. This can make a significant difference for many families.
I'm on parental leave. How does the activity test apply to me?
Parental leave is a recognised activity, so you generally continue to meet the activity test while you are on leave. You can typically use the same activity level you had before starting leave to determine your subsidised hours. This ensures you can maintain your child's place in care and helps with your return to work.
What happens if I have a partner? How are our hours calculated?
For families with two parents, Services Australia assesses the activity hours for both of you. Your family's entitlement to subsidised hours is then based on the parent with the lower activity level. For instance, if one parent works 50 hours and the other works 20 hours, your subsidy will be based on the 20-hour level (72 hours of subsidised care).
Can I get any subsidised care if I don't meet the activity test?
Yes, in some cases. Families with a combined annual income under a certain threshold (which changes annually) can access up to 24 hours of subsidised care per fortnight per child, even without meeting the activity test. There are also exemptions for grandparents, carers, and families facing hardship. Check with Services Australia for current income thresholds and rules.
Do I need to provide proof of my activities?
You don’t usually need to provide evidence when you first submit your activity hours. However, you must be able to prove your activities if Services Australia requests it later. This might involve supplying payslips for work, an enrolment confirmation for study, or a diary of your job search activities. It's wise to keep these records organised.
Book a tour of Meraki ELC
Want to see how we'd answer this for your family? Book a tour at our Mooroolbark or Bayswater centre — or use the contact form and we'll come back to you within one business day.