The Child Care Subsidy (CCS) – what you need to know

Since Nido Early Schools is a government approved childcare provider, you could be entitled to a government subsidy. The initiative is designed to enable low and middle-income families to access affordable, flexible and high-quality childcare.

How much Child Care Subsidy can I  receive?

Child Care Subsidy (CCS) is calculated using:

  • Your combined family income
  • The level of ‘activity’
  • Your childcare provider’s hourly rate
  • How many children under five you have in childcare

Low income families on annual incomes of $70,015 p.a. or less who don’t meet the activity test, can access 24-hours of subsidised care per fortnight without having to meet the activity test. Families who previously used the Budget Based Funded system will also be eligible for childcare fee assistance.

From 7 March 2022, families with more than one child aged five or under in care can get a higher CCS. The high subsidy will be paid to their second child and younger children. The standard rate child is usually the eldest child aged five or under and the younger child / children will get the higher subsidy. Eligible children will get a 30% higher subsidy up to a maximum of 95%. If you have children born on the same day, such as twins, Services Australia should be contacted to ensure one child is determined as receiving the standard CCS rate with the other, the higher rate.

If you’re looking to apply for the childcare subsidy for the first time or have any questions about the new system, please visit the Australian Government website for more information.


How does it work?

Subsidies will be paid directly to Nido Early School and we will then pass them on to you as a fee reduction. You will then pay the difference between the subsidy and the fees charged.

Most families earning $70,015 p.a. or less will receive a subsidy
of 85% (subject to CCS hourly rate cap)
Families earning over $70,015 p.a. will see their subsidy gradually decrease to 50% when their income reaches $175,015 p.a.
Families earning over $175,015 p.a. will see their subsidy gradually decrease to 20% when their income reaches $354,305 p.a.
Families with incomes of $354,305 p.a. or more will receive zero benefit

Who is eligible?

  • Your child is under thirteen, not attending secondary school and meets immunisation requirements
  • You or your partner, claiming the Child Care Subsidy, must meet residency requirements and also satisfy the Child Care Subsidy activity test

For the higher subsidy rate, be earning less than $354,305 and have more than one child aged five or under in care.

From July 2022, the CCS system is being enhanced to recognised combined families, where there are diverse family circumstances and each parent or carer is receiving CCS for different children in their family. Services Australia will backpay the higher subsidy amount to affected families for the period March to July 2022.

Options to increase your subsidy

Activities such as studying and volunteering also work in your favour towards your childcare subsidy. Taking some extra time to follow your interests or develop some new skills, even from your home through online learning platforms like Coursera, or other online TAFE and university courses will count as activity towards your subsidy.

Recognised activities:

  • paid work including being self employed
  • paid or unpaid leave, including paid or unpaid parental or maternity leave
  • doing an approved course of education or study
  • doing training to improve work skills or employment prospects
  • unpaid work in a family business
  • actively looking for work
  • volunteering
  • unpaid work experience or unpaid internship
  • actively setting up a business
  • other activities on a case by case basis

However, some of these activities will only be recognised for a certain amount of time. The government will only count:

  • periods of unpaid leave for up to 6 months – this doesn’t apply to unpaid parental leave
  • setting up a business for 6 months out of every 12 months

How does the activity test work?

For families earning up to $354,305 per annum, the table adjacent indicates how many hours of subsidy you will receive per hour of activity per fortnight.

Hours of Activity Hours of Subsidy
8 to 16 hours 36 hours
16 to 48 hours 72 hours
Over 48 hours 100 hours