Calculating your Child Care Subsidy


Your CCS will be calculated using three components:

There are 3 component to the Calculation of CCS

CCS = CCS%

X                   Hours of Care

X                   Hourly Rate

Total Family Income

Activity of LEAST
active family member

Lower of benchmark fee
& centre hourly fee

  • Family income is calculated from the combine household income
  • The activity test is calculated using the parent with the LEAST activity
  • The government are setting an annual benchmark rate, therefore the calculation of CCS is determined by the lower of the benchmark rate or the centre hourly rate

Combined family income


Your family’s combined income will calculate the CCS percentage you’re entitled to.

Remember, you will need to contact Centrelink when your combined income increases or decreases.

Combined family income^

Subsidy rate*

Up to $66,958

85%

Over $66,958  to under $171,958

Gradually reducing to 50%

$171,958  to under $251,248

50%

$251,248  to under $341,248

Gradually reducing to 20%

$341,248  to under $351,248

20%

$351,248  or more

0%

^ These amounts are correct for 2018-19 and may be subject to adjustment through indexation in subsequent years.

Level of activity


CCS is linked to how much a family contributes to the Australian economy through activity. This activity level is calculated from the parent with the lowest number of hours of activity.

Step 1

Hours of activity*
8 hours to 16 hours

Maximum number of hours of subsidy per child*
36 hours

Step 2

Hours of activity*
More than 16 hours to 48 hours

Maximum number of hours of subsidy per child*
72 hours

Step 3

Hours of activity*
More than 48 hours

Maximum number of hours of subsidy per child*
100 hours

Recognised activities


You will only be able to access the Child Care Subsidy if you are doing suitable activity and the amount of activity will then determine how many hours of Childcare Subsidy you are eligible for.

Activity counts as:

  • paid work, including being self-employed or on leave (including paid or unpaid parental leave)
  • doing unpaid work in the family business
  • training courses for the purpose of improving the individual’s work skills or employment prospects
  • an approved course of education or study
  • volunteering
  • unpaid work experience or internships
  • actively setting up a business
  • actively looking for work.

Concerned you won’t have enough activity?

There may be some families that lose the level of childcare funding support they have become used to as a result of the activity test. However, please note:

  • Activity is based on the family’s estimate over a thirteen week period
  • For casual/contract/itinerant workers whose hours may vary from week to week, you should pick the week with the highest level of activity in the thirteen week period and use that as your level of activity
  • You can go onto myGov and change your activity level at any time
  • While you do not have to verify your activity, the Government has said that it will look to audit about 10% of families each year to seek some form of verification that the activity is valid
  • Families earning less than $64,710 are exempt from activity tests for up to 24 hours care per fortnight

The Caps


The current cap of $7,500 per child has been updated depending on your family’s combined income.

  • Families earning less than $186,958 = no cap
  • Families earning $186,958 to $351,248 = $10,190 cap
  • Families earning over $351,248 are not eligible for CCS

Note: the government will be holding back 5% of CCS paid to families until reconciliation at the end of every financial year. This balance will be paid back to families in their tax return if they are eligible.

Questions or Concerns?


Please talk to your Centre Manager who will be able to assist you with any questions or concerns you may have.

Visit the government’s website on the new system here.