Early Learning Education is becoming more affordable and accessible for families in 2021/2022 and beyond than ever before. This is wonderful news for families with young children. These changes can give you greater flexibility around yours and/or your partner’s working schedule and give your child increased access to early learning education and care which has the benefit of maximising their opportunities for social, emotional, physical and cognitive learning and development during their early years.
How can I make the most of the CHANGES to Childcare Subsidy?
- CONTACT US to book more days of permanent or casual care up to the number of days/hours that your subsidy entitlements allow (hours per fortnight) if your child is already enrolled. If your child is not yet enrolled, click here to register.
- REGISTER your second child to attend care if you haven’t already done so.
We will endeavour to accommodate your requests as best we can around our availability. Preference will be given to families that already have children enrolled at our service.
How can I maximise my child’s EXISTING Childcare Subsidy Entitlements?
- Check your ‘Hours Per Fortnight’ in your CCS Entitlements to ensure that your child is enrolled for the maximum number of days available to you that can be subsidised at your percentage rate. If you have:
- 100 hours of care per fortnight (PFN), you can use up to 5 days of care in week one & week two of the CCS Fortnight. (total 10 sessions PFN)
- 72 hours of care per fortnight, you can use up to 3 days of care in week one & week two of the CCS Fortnight. (total 6 sessions per PFN)
- 48 hours of care per fortnight, you can use up to 2 days of care in week one & week two of the CCS Fortnight. (total 4 sessions per PFN)
- 24 hours of care per fortnight, you can use 1 day of care in week one & week two of the CCS Fortnight. (total 2 sessions per PFN)
- Ensure you’ve declared all ‘recognised activity’ to Centrelink in your CCS claim to have your child’s care subsidised for the maximum allowable hours per fortnight – recognised activity includes:
- paid work including being self employed
- paid or unpaid leave, including paid or unpaid parental or maternity leave
- unpaid work in a family business
- unpaid work experience or unpaid internship
- actively setting up a business.
- doing an approved course of education or study
- doing training to improve work skills or employment prospects
- actively looking for work
- volunteering
- other activities on a case by case basis.
- 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.
FURTHER DETAILS ABOUT THE CHANGES TO THE CHILDCARE SUBSIDY IN 2021/2022
Annual Cap – Removed December 2021
Before this change, families may have chosen to only have a child attend a limited number of days per week to stretch out the subsidised care across the duration of the financial year to avoid reaching the annual cap too quickly and receive the benefit across more of the financial year. The ‘Annual Cap’ was removed in December 2021 for all families that receive CCS, meaning that families can now enjoy the benefit of their childcare subsidy entitlements for the full financial year, with the child attending as many days as are allowed based on the allotted ‘hours per fortnight’.
Families with more than one child in care
From 7 March 2022, families with more than one child aged 5 or under in care will get a higher subsidy for their second child and younger children.
The standard rate child will get the standard CCS rate. This is usually the eldest CCS-eligible child aged 5 or under in the family. Younger children will get a higher subsidy.
Families may be eligible if they:
- earn less than $354,305
- have more than one child aged 5 or under in child care.
Eligible higher rate children will receive a 30% higher subsidy, up to a maximum 95%.
Families will continue to receive their income tested CCS rate for all children. Children eligible for the higher rate will have the increase automatically included in their CCS percentage reported to services.
Who gets the higher subsidy?
Services Australia will work out which children get the higher subsidy by:
- assessing all children in the family
- identifying the standard rate child, and
- identifying the higher rate children.
The standard rate child is usually the eldest CCS-eligible child aged 5 or under in the family. They get the standard CCS rate. Younger children will get a higher subsidy.
Families already getting CCS don’t need to do anything. Services Australia will automatically increase the CCS for eligible second and younger children.
Child care providers don’t need to do anything to help families get the higher rate. Services Australia is working with software providers to implement the changes.
All eligible children aged 5 or under are counted when determining the standard rate child.
For children born on the same date, such as twins, Services Australia will automatically determine one child as the eldest child and apply the higher rate to other children. Services Australia can change the automatic ordering of children born on the same day, if required. Families should contact Services Australia to request this.
Eligibility for the higher subsidy rate
If Services Australia believes there is no intention for a child to use child care, they will end a child’s CCS eligibility. If a child starts to attend care again, a family can lodge a new claim for CCS.
If a standard rate child’s CCS eligibility ends, Services Australia will reassess all other children in the family unit to determine the new standard rate child and new subsidy rates.
Families should contact Services Australia if their circumstances change, especially if their standard rate child is no longer using child care.
How much do younger children get?
Eligible higher rate children will receive a 30% higher subsidy, up to a maximum 95%.
Families will continue to receive their income tested CCS rate for all children. Children eligible for the higher rate will have the increase automatically included in their CCS percentage reported to services.
Additional Child Care Subsidy
Children who are entitled to both the higher CCS rate and Additional Child Care Subsidy (ACCS) will be paid the ACCS rate.
What is the Additional Childcare Subsidy?
You need to be eligible for Child Care Subsidy and meet extra criteria to get Additional Child Care Subsidy.
- Temporary Financial Hardship
- You must:
- be eligible for Child Care Subsidy
- have experienced temporary financial hardship due to an event that happened in the last 6 months, including COVID-19
- have a substantially reduced ability to pay child care fees.
- Temporary financial hardship may occur if you or your partner have:
- lost your job, other than if you resigned or retired
- suffered a loss of income or a business failure due to circumstances outside of your control, such as serious illness
- been adversely affected by a major disaster event
- had your home destroyed or severely damaged.
- You may also be experiencing temporary financial hardship from:
- the death of a partner or child
- loss of child support due to the death of a paying parent
- having to leave your home and not being able to return because of an extreme circumstance such as from being affected by family and domestic violence
- being affected by family and domestic violence, and the family member responsible leaves, or is removed from the home.
- You must:
You can nominate more than 1 event if they have occurred within the last 6 months.
We don’t consider any of the following events for this subsidy:
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- expenses such as routine home repairs or maintenance
- non-essential expenses
- increases in child care fees.
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- Transition to Work
- You must:
- be eligible for Child Care Subsidy
- meet the transition to work requirements
- be within the time limit for each transition to work activity
- have a family income of less than $70,015.
- You must also have either an active:
- Job Plan, unless you get Austudy, ABSTUDY or Disability Support Pension
- Participation Plan, if you get Disability Support Pension.
- You must also be getting 1 of these payments:
- Parenting Payment
- JobSeeker Payment
- Disability Support Pension
- Youth Allowance
- Carer Payment
- Special Benefit, if you aren’t eligible for JobSeeker Payment or Parenting Payment.
- Or 1 of these payments:
- Austudy
- Farm Household Allowance
- a means tested ABSTUDY payment.
- You must:
- Grandparent
- All of the following must apply, you or your partner:
- be eligible for Child Care Subsidy
- get an income support payment
- be the grandparent of the child
- have 65% or more care of the child
- make the day to day decisions about the child’s care, welfare and development.
- A grandparent is a child’s biological grandparent or great grandparent. This includes if you’re related to the child through any of the following:
- adoption
- step parents, including former step parents
- artificial conception
- de facto relationships
- surrogacy arrangements.
- All of the following must apply, you or your partner:
If you have 65% or more care of the child but don’t get an income support payment, you won’t be eligible for this subsidy. However, you may be eligible for Child Care Subsidy and an activity test exemption.
MORE QUESTIONS?
No problem – please don’t hesitate to get in touch via phone or email – we will help to clarify the options that may be available for your family.
