The higher Child Care Subsidy is here

From today, families with more than one child aged 5 or under in care will get a higher Child Care Subsidy (CCS) for their second child and younger children.

Families may be eligible if they:

  • earn less than $354,305
  • have more than one child aged 5 or under in child care.

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.

How much is the higher subsidy?

Eligible higher rate children will receive a 30% higher subsidy, up to a maximum of 95%.

Combined families

Most families will get the higher subsidy from today.

The Child Care Subsidy System is being enhanced to recognise combined families from July 2022. Services Australia will backpay the higher subsidy amount to affected families for the period March to July.

There is an option for combined families who want to get the higher subsidy immediately in March. But they must take action as soon as possible as claims can only be backdated for a maximum of 28 days.

Combined families who want more information should visit the Services Australia website.

More information

We have more information for providers on our website.

Services Australia has information for families on their website, including examples that show how the higher CCS works.