What Is the Child Care Subsidy? A Simple Guide
Quick summary
The Child Care Subsidy (CCS) is a payment from the Australian Government that helps families with childcare costs. It is paid directly to your childcare provider, which reduces the fees you pay. The amount you receive depends on your family's income, the hours you work or study, and the type of childcare you use.
Key takeaways
- Understand the CCS is a government payment made to your childcare provider.
- Check your eligibility based on residency, immunisation, and your child's age.
- Gather your documents like income estimates and Customer Reference Numbers (CRNs).
- Apply for the subsidy online through your myGov account linked to Centrelink.
- Confirm your child's enrolment details in myGov to start receiving the subsidy.
What is the Child Care Subsidy (CCS)?
The Child Care Subsidy, or CCS, is the main way the Australian Government helps families with the cost of childcare. It can feel a bit confusing at first, but our goal is to make it simple for you to understand.
Instead of a payment that goes into your bank account, the CCS is paid directly to your approved childcare provider. We then subtract this amount from your total fees. The remaining amount, known as the 'gap fee', is what you pay to us. This system helps make high-quality care more accessible for many families.
So, when you receive your statement from us, you'll see the full session fee, the CCS amount paid by the government, and the final gap fee that you are responsible for. All approved early learning centres, including our centres in Mooroolbark and Bayswater, use this system.
Who is Eligible for the Child Care Subsidy?
To receive the Child Care Subsidy, you and your child need to meet a few key requirements set by the government. These are designed to ensure the support goes to families who need it.
The main eligibility rules are:
- Residency: You or your partner must live in Australia and meet residency rules (such as being an Australian citizen, a permanent resident, or holding a specific visa type).
- Child's Age: The subsidy is for children aged 13 or under who are not attending secondary school (unless certain exemptions apply).
- Immunisations: Your child must meet the immunisation requirements set out in the National Immunisation Program Schedule.
- Approved Care: You must be using an approved childcare provider, like Meraki Early Learning Centres. We are fully approved to administer the CCS for our families.
It's important to check your specific circumstances against the full criteria on the Services Australia website, as they are the final authority on eligibility.
How is My Subsidy Calculated? The Three Key Factors
Services Australia uses three main factors to work out how much Child Care Subsidy you will receive. Understanding these can help you estimate how much support you might get.
1. Combined Family Income
Your total combined family income is the first thing the government looks at. The subsidy is calculated on a sliding scale. This means that families with a lower income generally receive a higher percentage of their childcare fees subsidised.
The income thresholds and subsidy percentages are updated each financial year by the government. Because these figures change, we always recommend using the official Payment and Service Finder tool on the Services Australia website for the most accurate and up-to-date information for your family.
2. Your Family's Activity Level
The 'activity test' determines the number of hours of subsidised care you can receive per fortnight. To get the subsidy, both parents (or a sole parent) need to be doing a certain amount of recognised activity. The parent with the lower number of activity hours determines the subsidy for the family.
Recognised activities are broader than just paid work. They can include:
- Paid work, including being self-employed
- Approved study or training
- Unpaid work in a family business
- Looking for work
- Volunteering
- Paid or unpaid leave (including parental leave)
The more hours of activity you do, the more hours of subsidised care you can access. This system is designed to support families who are working, studying, or contributing to the community.
3. The Type of Childcare Service
The government also considers the type of childcare you use. They set an hourly rate cap based on the service type. For centres like Meraki, the type is 'Centre Based Day Care'. The CCS is calculated based on your child's actual attendance fee or the government's hourly rate cap, whichever is lower.
This means the government will subsidise your fees up to this maximum hourly rate. If a centre's daily fee is above the amount covered by the cap, you will need to cover that portion as part of your gap fee. We are always transparent about our fees so you can make an informed decision for your family.
How to Apply for the Child Care Subsidy: A Step-by-Step Guide
Applying for the CCS is all done online. While it requires some information upfront, following the steps makes it a manageable process.
Here’s a simple guide to get you started:
- Sign in to myGov: You will need a myGov account. If you don’t have one, you can create one at my.gov.au.
- Link to Centrelink: Once in myGov, you'll need to link your account to Centrelink. You may need your Customer Reference Number (CRN) for this. If you don't have one, you can get one as part of the process.
- Make a Claim: Look for the option to 'Make a claim' or 'Apply for a payment'. Select 'Get started' under the 'Families' category, and then choose 'Child Care Subsidy'.
- Provide Your Information: The online form will guide you through a series of questions. You'll need to provide your family's income estimate for the financial year, your activity details (like hours of work or study), and your bank details.
- Submit Your Claim: Once you've filled everything out, review your details carefully and submit the claim.
What Happens After I Apply?
After you submit your claim, Services Australia will assess your application. This can take several weeks, so it's a good idea to apply before your child is due to start care. You will receive a notice in your myGov Inbox confirming the outcome.
This notice will tell you your CCS percentage, your subsidised hours, and your annual cap if applicable. It will also include your CRN and your child's CRN, which you must provide to us.
Once we have your CRNs, we create an 'enrolment notice' in the system. This is the most important final step! You will receive a notification in your myGov account asking you to review and confirm your child's enrolment details with Meraki Early Learning Centres. Once you approve this, the subsidy is officially linked to our centre, and we can start applying it to your fees.
Keeping Your Details Up to Date
Your CCS is based on the information you provide. It's very important to keep your details up to date with Centrelink throughout the year. If your family’s circumstances change, you must update your myGov account. This includes changes to your income, your activity level, or your relationship status.
Keeping your details current helps ensure you receive the right amount of subsidy. If your income goes up and you don't report it, you could be overpaid and end up with a debt. If it goes down, you could be missing out on extra support.
Services Australia withholds 5% of your CCS entitlement during the year as a standard practice. This helps reduce the chance of you having a debt at tax time. At the end of each financial year, they 'balance' your subsidy. They compare the amount of CCS you were paid with what you were truly entitled to based on your actual income. If you were underpaid, you'll get a lump sum. If you were overpaid, you’ll need to pay it back.
How Meraki ELC Supports Your Family
We know that navigating the Child Care Subsidy can feel like a big task. At Meraki, we see ourselves as your partners in your child's early learning journey, and that includes helping you with the practical side of things.
Our Centre Directors are experienced in how the CCS system works from a provider's perspective. While we can't give you financial advice, we can help you understand your statements, show you where to find your enrolment details in myGov, and answer general questions about how the subsidy is applied to your fees.
This support is part of our commitment to families at both our Mooroolbark childcare centre and our centre in Bayswater. It applies to all our rooms and programs, from our youngest babies right through to our government-funded Three and Four-Year-Old Kindergarten programs. If you ever have questions, please don't hesitate to speak with us or contact our team.
Frequently asked questions
How often is the Child Care Subsidy paid?
The CCS is paid by the government directly to your childcare provider, usually weekly or fortnightly. We then deduct this amount from your total fees. You are only required to pay the remaining amount, which is called the 'gap fee'. This simplifies payments for you, as you don't have to claim the money back yourself.
What if my income changes during the year?
It's very important to update your income estimate with Centrelink as soon as your circumstances change. You can do this through your myGov account. This ensures you're paid the correct subsidy amount and helps you avoid a potential debt at the end of the financial year when your payments are balanced.
What is the 'activity test' for the Child Care Subsidy?
The activity test measures how many hours of recognised activities, like work, study, or volunteering, you and your partner do each fortnight. This determines the maximum number of subsidised childcare hours you can access. The more hours you are active, the more subsidised hours of care you are eligible for, up to 100 hours per fortnight.
Do I still get CCS if my child is absent from care?
Yes, you are still eligible for CCS for a certain number of absent days. Families generally have 42 allowable absence days per child, per financial year, which can be used for any reason without needing proof. Additional absences may be available in special circumstances. We still need to charge for booked days to cover costs, and CCS will be applied for these allowable absences.
What's the difference between CCS and Additional Child Care Subsidy (ACCS)?
The Child Care Subsidy (CCS) is the primary subsidy available to most families. The Additional Child Care Subsidy (ACCS) provides a higher level of financial support for specific families who need extra help. This includes grandparents on income support, families experiencing temporary financial hardship, and children at risk of serious abuse or neglect.
Can I get CCS for a kindergarten program?
Yes, you can. Because our Three and Four-Year-Old Kindergarten programs at Meraki ELC are delivered in an approved Centre Based Day Care setting, you can claim Child Care Subsidy for your kindergarten fees. This can significantly reduce the cost of our high-quality, government-funded kinder programs, making them more affordable for families.
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.