The New Child Care Subsidy (CCS)

What you need to know

On 2 July 2018 the Child Care Subsidy replaced the Child Care Benefit and Child Care Rebate. The Child Care Subsidy is paid directly to services to be passed onto families. There are also changes to the annual cap which will make child care more affordable for most families.

Three things determine a family’s level of Child Care Subsidy:

  • A family’s annual adjusted taxable income determines the percentage of subsidy they are eligible for

  • An activity test determines how many hours of subsidised care families can access, up to a maximum of 100 per fortnight, and

  • The type of child care service determines the hourly rate cap.

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*More information about individual subsidy rates and annual cap changes is available in the New Child Care Package brochure.