10 Dec 2021

Important News for Families: The Australian Government Has Removed The CCS Cap!

In a welcome announcement after another challenging year for families, the Australian Government has announced that from 10 December 2021 the annual cap for families who receive the Child Care Subsidy (CCS) will no longer apply. 

What does this mean for you and your family? Read on to learn more!  

But first, what is the Child Care Subsidy? 
The CCS is a government part-payment that provides financial assistance to help families cover the cost of childcare. The formula that calculates the amount of financial support a family is eligible for takes into consideration each family’s individual circumstances, helping make the process of returning to work more accessible and less financially challenging for more families. 

Most importantly, this valuable financial support allows more families to benefit from high-quality early childhood education and care during the most important years of a child’s development.  

What is the annual cap? 
The annual CCS cap applies to families with a combined income between $190,015 and $354,305. Families within this bracket are capped at how much subsidy they are eligible for each year – currently, this is set at $10,655 per child. Families with a combined income of $190,015 or less do not have an annual cap.  

What changes is the Australian Government implementing? 
From 10 December, the Australian Government has announced that it is permanently removing the annual cap for all families. Families don’t need to do anything to their Services Australia account – the change will be updated automatically.  

What about families that have already reached the cap? 
The removal of the cap will be applied retrospectively, meaning that families who reached the cap before 10 December will have any additional out-of-pocket costs for the 2021-22 financial year may be eligible for reimbursement by the Government. Services Australia with reassess your CCS entitlement and determine if you are eligible for any back payments. 

Is there anything else families should know? 
Yes – the changes don’t stop here! The Australian Government has announced that 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. We will keep you updated with these changes and how your family can make the most of these changes. 

In the meantime, make sure you’re maximising your CCS allowance – review our simple and effective tips here.  

Still unsure? More help is available.  
Learn more about the changes to the Child Care Subsidy here, discover what payments you’re eligible for, or speak with our wonderful team of Family Support Consultants today – simply call 1800 CHILD CARE. 

 

Find your closest Lifelong Learning Centre online or call 1800 CHILD CARE to book a Family Tour or free Stay-and-Play session!

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