Child Care Subsidy . . . eek! Although the Child Care Subsidy helps families to access affordable and quality child care, it can be confusing and seem quite a daunting process when just getting started. If you’re not sure where to start with the Child Care Subsidy (CCS), we’ve put together a list of FAQs in a handy guide to help you! 

What is the Child Care Subsidy?

The child care subsidy is a payment from the federal government to assist with child care fees. It’s means-tested and dependent on your family circumstances, income and your activity levels. You need to be an Australian citizen or hold a specific visa to receive CCS.

There are two parts of the CCS:

Subsidy Percentage – For example, 85% (The percentage of care that will be paid for by Services Australia/Centrelink)

Approved Hours Per Fortnight – For example, 100 hours per fortnight. (The number of hours care to which that subsidy percentage applies)

How do I apply for the Child Care Subsidy?

Most families are able to apply through Centrelink online. However, some families will need to call Centrelink to get started.

When should I apply for the CCS?

The approval process can take between 6-8 weeks so we recommend applying as soon as possible, you can also begin applying before you’ve decided on a centre.

There is also the option to wait and apply for CCS once your child has started, but please be aware you have to pay full fees until your subsidy is approved.

What is the hourly rate?

During your application, you may be asked for the hourly fee for your centre. Here’s an easy calculation to work out the hourly rate: 

E.g. Daily fee/number of hours open = hourly rate

Centrelink does apply an hourly cap of $12.31 per hour. If you choose a centre where the hourly fee is higher than this you will have a larger gap fee.

Contact our enrolments team for more information on the fees at Mt Coolum Day Care Centre. 

How much will it cost me?

This depends on how much CCS you are entitled to and the centre fees. The government pays CCS directly to the centre, and we then bill each family for their gap payment. Once your CCS application has been approved you will be able to work out your costs.

Handy tips to remember: 

• The Centrelink helpline is open 8:00 am-8:00 pm Monday to Friday. Ph. 136 150
• Try to call early in the morning or during dinner. Most families won’t be thinking about calling at these times so you may be able to get onto someone more quickly.
• If your income, activity level or family circumstances change you need to let Centrelink know to ensure that you are receiving the correct subsidy amount.
• Centrelink applies a 5% withholding, this is money that Centrelink keeps back to reduce the likelihood of an overpayment. You will receive this at the end of the financial year when the payments are balanced.
• You can increase the amount Centrelink withholds and use it as a saving strategy!
• Centrelink works in fortnights so your activity level and the number of hours of care you are entitled to are discussed in fortnights. 

You can keep up-to-date with the latest changes to CCS on the Services Australia website here.