Changes to the Child Care Subsidy

Mark your diary – changes to the Child Care Subsidy are coming.

Whilst it may sound slightly ominous, these changes (which will come into effect from July 10, 2023) will see many families attending Sustainable Play Preschool eligible to receive more Child Care Subsidy (CCS).

Excitingly, several families previously not eligible for CCS entitlements will also now become eligible, due to the increase in the family income limit.

So, what do these changes mean for your family? Let us explain.

What do you need to know?

In a nutshell, from July 10, 2023, the following will apply:

• The family income limit to receive CCS will increase from $356,756 to $530,000 – meaning more families will be eligible for CCS.
• The maximum amount of CCS will increase from 85% to 90%. Families earning $80,000 or less will get 90% subsidy.
• Families with more than one child aged 5 or under in care can still get a higher rate for their younger child, if they earn below $362,408.
• Families will be able to get a minimum of 36 hours of subsidised care per fortnight for each Aboriginal and/or Torres Strait Islander child in their care, regardless of their activity level.
• If families receive Additional Child Care Subsidy (ACCS) their rates will stay the same. From 10 July 2023, the low-income limit for ACCS Transition to Work (TTW) will increase to $80,000.
• From July 1, 2023, families will be required to pay their gap fees electronically to prevent fraud and ensure compliance with the CCS.

These changes are explained in further detail here.

What do families need to do?

To ensure that you receive the right amount of CCS from July 10 2023 you need to make sure your income estimate is correct. If you already receive CCS, the changes will be applied automatically from July 10.

If you don’t currently claim CCS but are now eligible due to the increased income limit, you need to make a claim using your Centrelink online account through myGov from July 10, 2023.

If any families are not paying their gap fees electronically, you will need to set this up prior to the start of the new financial year.

If you need more information about CCS and ACCS, you can find this on the Services Australia website.