Updated Childcare Subsidy Information

CCS SYSTEM (childcare subsidy)

The new Childcare Subsidy will begin in July 2018, The key changes for families

Is it has been simplified. The centrepiece of the package is the Child Care Subsidy. When the Child Care Subsidy commences in

July 2018, it will:

 replace the Child Care Benefit (CCB) and Child Care Rebate (CCR) with a single, means-tested subsidy

 be paid directly to service providers

 be simpler than the current multi-payment system

 be better targeted and provide more assistance to low and middle-income families

Family Income

Families earning $65,710^ or less will receive a subsidy of 85 per cent of the actual fee charged (up to 85 per cent of an hourly rate cap). For family incomes above $65,710^, the subsidy gradually decreases to 20 per cent when family income reaches $340,000^. For families with incomes of $350,000 or more, the subsidy is zero per cent.

Combined Family Income    Subsidy rate
Up to $65,710                  85%
Over $65,710 to under $170,710 Gradually reducing to 50%
$170,710 to under $250,000                      50%
$250,000 to under $340,000 Gradually reducing to 20%
340,000 to under $350,000                 20%
$350,000 or more                  0%


Activity test requirements

Family eligibility for the Child Care Subsidy will be determined by a three-step activity test, more closely aligning the hours of subsidised care with the combined hours of work, training, study or other recognised activity undertaken, and providing for up to 100 hours of subsidy per fortnight. A broad range of activities will meet the activity test requirements, including paid work, being self-employed, doing unpaid work in a family business, looking for work, volunteering or studying.

There will be exemptions to the activity test for parents who legitimately cannot meet the activity requirements activity undertaken and providing for up to 100 hours of subsidy per fortnight.