Child Care Subsidy Changes – March 2022

Child Care Changes To Child Care Subsidy

You might have heard that there are upcoming changes to the Child Care Subsidy (CCS). We’re going to lay out the CCS changes, who is eligible for higher CCS payments and how the payments will increase right here…

How is the CCS changing?

From the 7th of March 2022, families with two or more children aged five and under in care will receive a higher subsidy rate for their younger child or children.

The ‘standard rate child’, usually the eldest CCS eligible child aged five or below, will continue to receive the standard CCS rate they do right now, and any younger eligible children, ‘higher rate children’, will receive the increased CCS rate.

In summary, there will be no change to your CCS for you oldest child in care (or if you have only one child in care), the increases only apply to your second and subsequent children attending child care.

You may be eligible for the CCS increase if:

  • Your family’s annual income is less than $354,305
  • You have more than one child aged five or under in child care

How much will my Child Care Subsidy increase by?

  • Children who are eligible for the higher rate (subsequent children in care aged under five) will receive a 30% higher subsidy, up to a maximum amount of 95%.
  • Families will continue to receive their income tested CCS rate for all children as they do now, and the increase for any eligible children will automatically be applied.

Do I need to do anything to receive the higher CCS rate?

No, families who are already getting the CCS don’t need to do anything to receive this CCS increase. Your CCS will automatically increase for all eligible second and younger children from the 7th of March 2022.

How does this affect combined families?

There is great news for combined families under the updates to the Child Care Subsidy, as it is being enhanced to recognise combined families from July 2022. For families where both parents, who are partnered, are individually eligible for CCS for different children, the higher rate will also apply to second and additional children under five years of age. Services Australia will backpay the higher subsidy amount families are eligible for from March to July 2022.

However, if you’d like to claim the increased CCS immediately from the 7th of March 2022 for your combined family, rather than waiting until July, you can. You’ll have to choose one partner to make the CCS claim for all of the children, and that person will need to lodge a new CCS claim. If you’re looking to take this route, make sure to put your new claim in as soon as possible, as claims can only be backdated by 28 days, and be sure to let us know so we can update the enrolments of your children at Choklits Child Care Centre.

Head to the government website listed below for further information.

My child is currently receiving the ACCS, does this change affect me?

No, children who are entitled too and currently receiving the Additional Child Care Subsidy (ACCS) will continue to receive their current ACCS rate.

More information about the CCS changes

All these changes should come into effect automatically so you don’t have to worry about doing anything right now.

If you have further questions please head to the official government site which contains more information provided by Services Australia about the higher CCS.

Or, you can always email us with any questions you have [email protected].

Choklits Child Care

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