Child Care Subsidy Calculator
Unsure just how much Child Care Subsidy you can get in NSW? This Child Care Subsidy Calculator for NSW (CCS Calculator) can help you figure out the amount of Child Care Subsidy you can claim from the Australian Government and, consequently, the out-of-pocket fees you will need to pay for child care.
We also understand that many parents have questions surrounding Child Care Subsidy, such as “How much child care subsidy can I claim?” or “How is child care subsidy calculated?”. We aim to provide the best explanations for these questions below to help clarify any doubts you may have regarding your childcare subsidy and rebates.
Before you use our CCS Calculator, please be prepared with the following details:
- Your Child Care Subsidy Rate and Withholding (CCS Rate, CCS Withholding)
- You can find these in the letter from Centrelink under your entitlements.
- Childcare Centre information — daily fees, hours of care per day, number of days of care per week.
Please note that the above amounts are only an estimate and are based on the information you have provided as well as the updated Child Care Subsidy rates as of 10 July 2023.
How Do I Claim Child Care Subsidy?
The Child Care Subsidy was introduced in July 2018 by the Australian Government to provide additional aid to families in covering the cost of child care. The Child Care Subsidy you are eligible for is paid directly to the child care provider, reducing the amount of the fees. Find out the gap amount you’ll need to pay with our Child Care Subsidy Calculator above.
In order to claim Child Care Subsidy, you must meet the following eligibility criteria:
- Be a resident of Australia
- Have a child under the age of 13 who is not attending secondary school
- Be paying for child care at an approved child care service
- Meet the income and asset requirements
You can find the complete list of requirements for Child Care Subsidy on the Services Australia website.
If you are eligible to claim Child Care Subsidy, you’ll need to register with Centrelink online using your myGov account.
How Is Child Care Subsidy Calculated?
Child Care Subsidy is calculated using a combination of factors:
Family Income Assessment
The foundation of CCS calculation is your family's income. Because the subsidy is aimed at helping lower-income families with the cost of child care, your CCS will depend on the size of your family’s combined income. Generally, as your income increases, the percentage of subsidy decreases. It's important to provide accurate income details during the claiming process to ensure your subsidy is calculated correctly.
The Activity Test
The next major factor is the amount of recognised activity that both parents (or primary caregiver) undertake each fortnight. This is measured by the Activity Test. Recognised activities include work, study, training, volunteering, and actively seeking employment. This number of active hours for recognised activities affects the eligible number of hours of subsidised care. The more activity hours, the higher the potential subsidy.
Type of Child Care Service
The type of approved childcare service you use also influences the subsidy calculation. Depending on the types of services, such as long day care, family day care, or outside school hours care, your subsidy rates can vary greatly.
Hourly Rate Cap
The calculation of the subsidy is also limited by an hourly rate cap, which is the highest possible hourly fee considered for determining the subsidy. If your childcare fees are higher than the hourly rate cap, your subsidy will only be provided up to the limit stipulated by the cap.
For more information, please visit the Child Care Subsidy section on Services Australia’s website.
Frequently Asked Questions
Why am I not receiving the full Child Care Subsidy amount?
Parents are often surprised to find that they are not receiving the full percentage given by Centrelink. The main causes for the discrepancy are:
CCS Hourly Rate Cap: The amount of Child Care Subsidy you receive is capped at $12.74 per hour (as of 1st July 2022, and this rate is adjusted yearly). If your Child Care Centre hourly rate is above the hourly rate cap and your CCS Entitlements are, for example, 50%, you will only receive 50% of $12.74 as a subsidy. - https://www.servicesaustralia.gov.au/type-child-care-you-use-can-affect-child-care-subsidy?context=41186#hourlyrate
CCS Withholding: By default, 5% of your Child Care Subsidy is withheld to offset potential debts. This percentage can be changed twice a year online on Centrelink. At the end of each financial year, Services Australia will balance your payment using your actual adjusted taxable income. - https://www.servicesaustralia.gov.au/your-income-can-affect-child-care-subsidy?context=41186#withholdingccs
Why is my Child Care Subsidy different every second week?
Your childcare subsidy entitlements include a limited number of hours per fortnight (please see the table below). It often happens that a family exhausts their entitlements before the end of the second week, and less subsidy is paid for that week.
| Activity level each fortnight | Hours of subsidised care each fortnight |
|---|---|
| Less than 8 hours | 0 hours if you earn above $72,466 24 hours if you earn $72,466 or below |
| More than 8 to 16 hours | 36 hours |
| More than 16 to 48 hours | 72 hours |
| More than 48 hours | 100 hours |
Is my result from this Child Care Subsidy calculator the exact amount I will need to pay in fees?
The resulting amount does represent the gap you’ll need to cover with your own funds for childcare fees. However, it is important to note that this Child Care Subsidy 2023 Calculator only provides an estimate based on the information you have provided and does not take into account other factors, such as Centrelink repayments or payments from a Social Security Agreement.
What if my circumstances change during the year? How does it affect my Child Care Subsidy?
If your circumstances change, such as changes in income or care arrangements, you must report them to Centrelink in order for them to be reflected in your Child Care Subsidy. Your child care subsidy is paid every 2 weeks, and any changes to it will only be reflected on the next payment.
Can I get retroactive Child Care Subsidy payments if I didn't apply earlier?
According to Services Australia, you may be able to claim Child Care Subsidy payments up to 28 days prior. To avoid missing out on subsidies, you can claim them in advance as early as 3 months before, or within 52 weeks of the expected date of birth or adoption of your child.
Is the Child Care Subsidy available for all types of child care services provided by Eikoh?
Eikoh is an approved childcare service, so you will be able to claim Child Care Subsidy for your children if they are enrolled in our services. If you require any assistance with the application process for Child Care Subsidy, please do not hesitate to give us a call, and our friendly team will be happy to guide you or answer any questions you may have.
Do I need to pay the full fees upfront, or will the Child Care Subsidy be deducted automatically?
Since the subsidy amount is typically paid directly to the childcare provider, you will only need to pay out of pocket for the gap difference amount. You can use our handy Childcare Subsidy Calculator above to find out just how much that amount is based on your CCS entitlements and childcare needs.