The Australian Government is improving support for families by increasing Child Care Subsidy (CCS) rates from 10 July 2023. This is great news for families and supports more accessible and affordable early learning and care. The Government estimates that more than 90% of families will receive the same or higher rate of CCS under the changes.
An overview of the new rates by income level is available here Cheaper child care in 2023. Families can use Goodstart's Child Care Subsidy Estimator to estimate what their new CCS rate and out of pocket costs may be after 10 July.
Some of the key changes coming on 10 July
The maximum amount of CCS is increasing from 85% to 90% for families earning up to $80,000.
The income limit for CCS is increasing from $356,756 to $530,000.
If you have more than one child aged 5 or under, you may be eligible for a higher subsidy rate for your second and subsequent children.
Activity test changes for Aboriginal and Torres Strait Islander children
- From 10 July 2023, there are changes to Child Care Subsidy for Aboriginal and Torres Strait Islander children.
- The changes mean that families can get at least 36 hours of subsidy per fortnight for each child attending childcare, regardless of their activity hours.
- This will further support early childhood outcomes for First Nations children. Further information available here.
Families needing a little extra help - ACCS
- The Additional Child Care Subsidy (ACCS) provides extra help with fees to families facing barriers to child care
- ACCS will usually cover all of a child’s child care fees
- Read more about eligibility and requirements for ACCS on the Services Australia website
- There are four categories of ACCS funding from Government (see table below):
| Additional Subsidy | Details |
|---|---|
Child wellbeing (children at risk of serious abuse or neglect) | In most cases, the subsidy covers the full cost of child care. Eligible families will get the lower of either:
|
Temporary financial hardship (TFH) | Eligible families won’t have to meet activity testrequirements. This means they can access up to 100 hours of subsidised child care per fortnight. They’ll get the lower of either:
|
Grandparent (providing a minimum of 65% of care and on income support) | Eligible grandparents won’t have to meet the activity test requirements. This means they can access up to 100 hours of subsidised child care per fortnight. They’ll get the lower of either:
The subsidy is paid directly to approved providers. |
| Parents transitioning to work from income support | The number of hours of subsided care a family will be entitled to depends on their activity level. If the individual has a partner, the activity test result is determined by the person doing the least amount of activity. They’ll get the lower of either:
|
For further information about the upcoming changes in July visit the Australian Government’s website here or contact Goodstart’s Family Services Team on 1800 222 543.