Balancing work and family life is no small feat, especially when it comes to affording quality child care. For busy families, the costs can quickly become overwhelming, leaving parents feeling stressed and stretched thin.
Whether you’re a working parent juggling a full-time job, a single parent trying to make ends meet, or a guardian striving to provide the best for your little ones, the financial burden of child care can be a major concern.
Constant worry about finding affordable and reliable child care can drain your peace of mind and your wallet. The good news is that help is available through the Child Care Subsidy (CCS).
In this guide, we’ll walk you through everything you need to know about the Child Care Subsidy. By the end of this article, you’ll have a clear understanding of how to ease the financial strain of child care and better support your family’s needs.
What is the Child Care Subsidy (CCS)?
The Child Care Subsidy (CCS) was introduced in July 2018. Its main purpose is to help Australian families cover the cost of child care, making it more affordable for parents and guardians to work, study, or manage other responsibilities.
Purpose of the CCS
The CCS allows parents to pursue employment or education without the stress of excessive child care costs. By paying a portion of the child care fees directly to the service provider, the CCS helps families manage their budgets better, making sure that children can access quality care and early education.
Eligibility Criteria for the Child Care Subsidy
To get the CCS, you need to follow certain residence rules. Here’s what you need to know:
#1 Residence Rules
On the day you apply, you or your partner must be living in Australia and meet one of these conditions:
- Be an Australian Citizen
- Have a permanent visa
- Hold a Special Category visa
- Possess a specific temporary visa, like a partner provisional or temporary protection visa
Other Ways to Qualify
You might also qualify if:
- You have a subclass 403 visa and are part of the Pacific Australia Labour Mobility scheme family accompaniment initiative
- You or your partner are international students receiving financial aid from the Australian Government to study in Australia
- You are experiencing hardship
- There are special circumstances in your situation
#2 Immunisation Requirements
For children under 20 to meet the immunisation requirements, they need to do one of the following:
- Follow the age-appropriate vaccination schedule set by the Department of Health and Aged Care
- Be on an approved catch-up vaccination schedule according to the current Australian Immunisation Handbook by the Department of Health and Aged Care
- Have a medical exemption that is officially recorded on the Australian Immunisation Register (AIR)
#3 Primary School Levels for Child Care Fee Assistance
You need to inform Services Australia when your child starts primary and secondary school to determine eligibility for child care fee assistance.
Child Care During School Hours
We don’t cover child care fees for the hours your child is at school. However, if your child is of school age, we do provide assistance for child care outside of school hours. For more details, you can look up what happens when your child starts school.
Recognised Primary School Levels
The first year of primary school varies depending on your state or territory. You can check with the Department of Education in your state or territory to find out when your child is expected to start primary or secondary school.
Child Care for Secondary School Students
If your child is in secondary school, we might help with child care outside of school hours if they meet certain conditions. We provide assistance if they are:
- 13 years old or younger
- 14 to 18 years old and have a disability
In these cases, you need to provide evidence explaining why your child needs supervision and cannot be left alone. This might include proof of your child’s disability and confirmation that no adult is available to care for them during those hours.
#4 Additional Support
Some families can receive extra help through the Additional CCS, which is provided on top of the regular CCS to help cover child care costs.
Types of Additional CCS
There are three types of Additional CCS you might be eligible for:
- Grandparents: If you are a grandparent taking care of your grandchildren
- Transitioning to Work: If you are moving from welfare to work
- Temporary Financial Hardship: If you are going through a temporary financial crisis
You can apply for any of these types if you meet the criteria.
#5 Approved Child Care Types
These are the child care services approved by the Australian Government to receive the CCS on your behalf, helping to lower your costs. Approved child care includes:
- Centre Based Day Care: This includes long day care and occasional care
- Family Day Care: Child care provided in a registered carer’s home
- Outside School Hours Care: Care provided before school, after school, and during vacations
- In Home Care: Care provided in your own home
How to Apply for the Child Care Subsidy?
Follow these steps to apply for the CCS:
#1 Setting Up Online Accounts
To apply, you’ll need to create a myGov account and link it to Centrelink.
Create a myGov Account:
- myGov allows you to access various government services online.
- You need your own email address to set up a myGov account.
- Go to the myGov website and follow the instructions to create an account.
Link Centrelink:
- How you link Centrelink depends on whether you’ve claimed a payment before.
If You’ve Claimed a Payment Before
- Use your Centrelink Customer Reference Number (CRN) to link Centrelink to your myGov account.
- If you don’t know your CRN, you’ll need to prove your identity online using myGov (follow the same steps as for new claimants).
If You Haven’t Claimed a Payment Before
- Prove your identity online through myGov.
- Sign in to myGov and select “View and link services,” then choose Centrelink.
- Enter details from two acceptable identity documents and your Medicare card, along with some other personal information.
- Once your identity is verified, Centrelink will be linked to your myGov account.
#2 Prove Your Identity
Before you can claim a payment or service, you must prove your identity.
Getting a Centrelink Customer Reference Number (CRN)
To claim a payment or concession, you need a Centrelink CRN. You can obtain a CRN by verifying your identity in one of the following ways:
- Online
- On Phone
- Visiting the service centre in person
#3 Provide Supporting Documents
While completing your claim, we will ask for specific documents or information. The claim form will indicate which documents are needed.
Submitting Documents
- Next Steps Page: Upload all the required documents on the “Next steps” page in your online account.
- Before Submission: Make sure you provide these documents before submitting your claim.
Having all the necessary documents ready will help you complete your claim quickly and efficiently.
#4 Confirm Your Enrolment
When you applied for the CCS, you might have already confirmed your enrolment details. If not, you’ll need to talk to your child care service to ensure they submit your child’s enrolment details to us so you can confirm them online.
How to Manage Your CCS Payment?
#1 Report Changes in Your Situation
You need to inform us if there are any changes in your circumstances while you are receiving the Child Care Subsidy. Here are some situations you need to report:
- Your child starts primary or secondary school for the first time
- There are changes in your or your partner’s work or activity details
- Your or your partner’s income changes
- Your child care arrangements change
- Your personal situation changes
- You change your address
- You move out of Australia
#2 If You Receive Both Child Care Subsidy and Family Tax Benefit
Services Australia will calculate both the CCS and Family Tax Benefit based on your family income estimate. The higher your estimated income, the less subsidy and FTB you’ll receive.
If you receive both FTB and the Child Care Subsidy, it’s important to provide an accurate estimate of your family income. Here’s why:
- Underestimating Income: If you earn more than you estimated, you might receive too much subsidy and FTB. If this happens, you’ll have to repay the extra money.
- Overestimating Income: If you overestimate your income, you might receive less subsidy and FTB than you’re entitled to. In this case, we might pay you a top-up when we balance your payments.
Using a child care subsidy calculator can help you estimate your income more accurately, ensuring you receive the correct amount of benefits.
#3 If You Increase Your Child Care Hours
You don’t need to inform us if you start using more child care or if your child care days change.
However, if you do increase your child care hours, make sure your family’s income estimate and activity levels are accurate. It’s crucial to update us about any changes in your family’s income, especially if it’s near $533,280.
Using a child care subsidy calculator can help you regularly check and update your income estimate, ensuring you receive the correct amount of subsidy.
#4 If Your Child Is Absent from Child Care
When your child will be absent from child care, make sure to inform your child care service. It’s important to let them know so they can record the absence correctly. If the absence isn’t recorded properly, we won’t be able to pay your Child Care Subsidy accurately.
#5 Traveling Outside Australia
If you move overseas permanently, your subsidy will end when you leave Australia.
For short trips, you can keep receiving your subsidy for up to 6 weeks, but you need to keep paying for child care in Australia during this time.
After 6 weeks, your subsidy will be discontinued.
Final Words
Understanding and using the CCS can significantly reduce the burden of child care costs.
We encourage you to use the child care subsidy calculator to estimate your benefits and apply for the subsidy to make the most of the assistance available. This tool can help you plan and manage your child care expenses more effectively.