CCS Hourly Rate Cap

Child Care Subsidy (CCS) is a financial assistance program in Australia that helps families with the cost of childcare. One aspect of the CCS that affects many families is the hourly rate cap. Here's what you need to know:

What is the hourly rate cap?

The hourly rate cap is the maximum hourly rate that the government will subsidise for each hour of care. If the hourly rate charged by your childcare service is higher than the cap, you'll need to pay the difference out of pocket.

What is the current hourly rate cap?

The hourly rate cap for the 2022-2023 financial year is $12.74 per hour for centre-based care. This rate is indexed each year to keep up with the cost of living.

The hourly rate cap for the 2023-2024 financial years is $13.73 per hour for centre-based care from 10 July 2023.

How does the hourly rate cap affect my CCS entitlement?

Your CCS entitlement is calculated based on your family's income, the hours of care you use, and the type of care you use. The amount of subsidy you receive is based on a percentage of the hourly rate cap, up to a certain number of hours per fortnight. For example, if you use centre-based care and the hourly rate cap is $12.74 per hour, and you're entitled to a 50% subsidy, the maximum subsidy you can receive is $6.37 per hour.

What if my childcare service charges more than the hourly rate cap?

If your childcare service charges more than the hourly rate cap, you'll need to pay the difference between the cap and the actual hourly rate out of pocket. For example, if your childcare service charges $15 per hour and the hourly rate cap is $12.74, the extra $2.26 per hour won't be eligible for CCS.

It's important to be aware of the hourly rate cap when budgeting for childcare expenses and choosing a childcare service. If you have any questions about the hourly rate cap or your CCS entitlement, don't hesitate to speak to us or contact Services Australia.