There will soon be changes made to the Child Care Subsidy (CCS) to make child care more affordable for most families. The changes will take affect from 10 July 2023.

What is Child Care Subsidy fees

Child Care Subsidy is a payment to help with the cost of child care fees.

To get Child Care Subsidy (CCS) you must:

  • care for a child 13 or younger who’s not attending secondary school, unless an exemption applies
  • use an approved child care service
  • be responsible for paying the child care fees
  • meet residency and immunisation requirements.

What are the changes to Child Care Subsidy fees

Most families will save money. This is known as Cheaper Child Care.

From 10 July 2023, the maximum amount of subsidy is increasing from 85% to 90% for families earning up to $80,000.

In most cases, you don’t need to do anything to get the increased rate. The changes will apply automatically from 10 July 2023.

The income limit for CCS is also increasing from $356,756 to $530,000.

If you earn over $80,000, you may get a subsidy starting from 90%. This will go down by 1% for each $5,000 of income your family earns. The CCS percentage you’re entitled to depends on your family’s income.

If you have more than one child aged 5 or under, you can still get a higher rate for one or more of your children.

For further details visit Services Australia HERE