BREAKING NEWS: |
Higher CCS for multiple children and removal of
annual cap brought forward |
Centrelink
are making changes to the Child Care Subsidy (CCS) to
help families who currently pay the most and experience
the biggest barriers to participation in work.
From 10 December 2021, they are removing the annual cap
for all families who get CCS.
From 7 March 2022, families with more than one child in
care will get a higher subsidy.
These
changes were announced in the 2021–22 Budget. They are
implementing the changes earlier than initially
announced to provide more support to families sooner.
Annual Cap
Families
earning more than $190,015 (2021–22 terms) have an
annual subsidy cap of $10,655 per child each financial
year.
From 10
December 2021, centrelink are removing the annual cap
for all families who get CCS.
Families with more than one child in care
From 7
March 2022, families with children aged five or under in
care will get a higher subsidy for their second child
and younger children.
Who will be eligible?
Families
may be eligible if they:
- earn
less than $354,305
- have
more than one child aged five 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 unit
-
identifying the standard rate child
-
identifying the higher rate children.
The
standard rate child will get the standard CCS subsidy.
Younger children will get a higher subsidy.
The
standard rate child is the eldest child in the family
unit aged five or under who is eligible for CCS and
attending care.
How much do higher rate children get?
Eligible
higher rate children will receive a 30% higher subsidy,
up to a maximum 95%.
Children
eligible for the higher CCS rate will have the increase
automatically included in their CCS percentage reported
to services.
What do I need to do?
Child care
services don’t need to do anything to help families get
the higher rate. Services Australia is working with
software providers to implement the changes.
It is
important that our team and families are aware of the
changes. Centrelink will provide more information and
resources to share with the team and families in the
weeks and months ahead.
If you
have any further questions, please do not hesitate to
contact your centre manager.
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