Enhanced Child Care Subsidy

From July 2022, families will receive more support from the Australian Government with the Child Care Subsidy (CCS) set to be increased for families with multiple children under the age of 6, and the annual cap removed.

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Overview

From July 2022, families will receive more support from the Australian Government with the Child Care Subsidy (CCS) set to be increased for families with multiple children under the age of 6.These changes are subject to the passage of legislation.

The changes include:

  • increasing the Child Care Subsidy for families with more than one child in care under the age of 6, and
  • removing the annual cap.

These measures will lower out-of-pocket costs for more than 250,000 families in 2022–23, with the Australian Government investing an additional $1.7 billion through CCS.

Families with children under 6 face higher child care costs and these are compounded where a family has more than one child. Thanks to the subsidy increase, families with multiple children aged under 6 in care will pay less in child care fees.

Increased subsidy for families with multiple children

From July 2022, we’ll increase a family’s CCS if they:

  • earn under $353,680 (2020–21), and
  • have more than one child aged under 6 in care.

We’ll increase the subsidy by 30% (capped at 95%) for their second child and subsequent children aged under 6 in care.

The increased subsidy will not apply to In Home Care sessions as IHC is subsidised on a family rather than per child basis.

Removing the annual cap

Families earning more than $189,390 (2020–21) have an annual subsidy cap of $10,560 per child each financial year.

From July 2022, we’re removing this annual cap.