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 on your fees. The initiative is designed to enable low and middle-income families to access affordable, flexible, and high-quality childcare.

The Government reduces the amount you may pay for your childcare to increase the level of care your child can receive in their formative years. This limits the financial burden that parents or carers require to allow their child to attend childcare so that they can either work or study more hours.

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.

Families with an adjusted taxable income of $0 to $72,466 p.a. will receive a subsidy
of 85% (subject to CCS hourly rate cap)
Families with an adjusted taxable income of $72,466 to below $177,466 p.a. will receive between 85% and 50%. The percentage reduces by 1% for every $3,000 of income earnt.
Families with an adjusted taxable income of $177,466 to below $256,756 p.a. will receive 50%
Families with an adjusted taxable income of $256,756 to below $346,756 p.a. will receive between 50% and 20%. The percentage reduces by 1% for every $3,000 of income earnt.
Families with an adjusted taxable income of $346,756 to below $356,756 p.a. will receive 20%
Families with an adjusted taxable income of $356,756 p.a. or more will not be eligible to receive a subsidy.
Fees

Child Care Subsidy (CCS) Calculator & Understanding your CCS Statement

Our Child Care Subsidy Calculator can quickly and easily help you estimate just how much support you could be eligible for.

Use our easy subsidy calculator to find out how much Child Care Subsidy you can claim and estimate your out-of-pocket costs for childcare.

We have also produced a guide to help you to understand your CCS statement.

How much Child Care Subsidy can I receive?

Child Care Subsidy is calculated using:

  • Your combined family income
  • The number of children under five you have in childcare
  • The level of activity you may be doing; if you are studying or volunteering, this may work in your favour towards your childcare subsidy
  • Your childcare provider’s hourly rate.

From 7 March 2022, families with more than one child aged five or under in care can get a higher subsidy. The higher CCS 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.

Fees
Fees

Who is eligible for CCS?

  • Your child is under thirteen and not attending secondary school unless an exemption applies
  • You care for your child at least two nights per fortnight (or have 14% care)
  • All immunisation requirements are met
  • You or your partner, claiming the Child Care Subsidy, must meet residency requirements
  • Are liable for childcare fees for care provided at an approved childcare service.

You may apply for exemptions to these criteria if your child:

  • Attends secondary school but needs supervision. They must be either 13 years old or under 14 to 18 years old with a disability. In these circumstances, you must provide evidence why your child can’t be unsupervised. This may include evidence of your child’s disability. You will also need to confirm that an adult is unable to care for your child during this time
  • Is following an immunisation catch-up schedule according to the current Australian Immunisation Handbook
  • Has approved medical exemption from immunisation which has been recorded on the Australian Immunisation Register (AIR).

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.

Additional Support

Some families can get  additional Child Care Subsidy to provide extra support with childcare fees.

There are four different types of additional Child Care Subsidy that you can apply for if you’re either:

  • a grandparent
  • transitioning to work
  • experiencing temporary financial hardship
  • caring for a child who is vulnerable or at risk of harm, abuse, or neglect.
kid seeing in the book at nido child care centre
kid trying to paint at nido child care centre

Approved childcare

These childcare services have Australian Government approval to obtain Child Care Subsidy to reduce fees on your behalf:

  • Centre Based Day Care, including long day care and occasional care
  • Family Day Care
  • Outside School Hours Care, including before, after and vacation care
  • In Home Care.

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.
Fees

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 $356,756 per annum, the table adjacent indicates how many hours of subsidy you will receive per hour of activity per fortnight.

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

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