Changes to Child Care Subsidy (CCS) in 2023 Australia

Mark your diary – changes to the Child Care Subsidy are coming.

Whilst it may sound slightly ominous, these changes (which will come into effect from July 10, 2023) will see many families attending early learning services eligible to receive more Child Care Subsidy (CCS).

Excitingly, several families previously not eligible for CCS entitlements will also now become eligible, due to the increase in the family income limit.

So, what do these changes mean for your families and for you? Let us explain.

What do you need to know?

In a nutshell, from July 10, 2023, the following will apply:

The family income limit to receive CCS will increase from $356,756 to $530,000 – meaning more families will be eligible for CCS.
The maximum amount of CCS will increase from 85% to 90%. Families earning $80,000 or less will get 90% subsidy.
Families with more than one child aged 5 or under in care can still get a higher rate for their younger child, if they earn below $362,408.
Families will be able to get a minimum of 36 hours of subsidised care per fortnight for each Aboriginal and/or Torres Strait Islander child in their care, regardless of their activity level.
If families receive Additional Child Care Subsidy (ACCS) their rates will stay the same. From 10 July 2023, the low-income limit for ACCS Transition to Work (TTW) will increase to $80,000.
From July 1, 2023, families will be required to pay their gap fees electronically to prevent fraud and ensure compliance with the CCS.

These changes are explained in further detail here.

What do you need to do?

In most cases, there is nothing that you need to do other than ensure that your families are aware of these upcoming changes – especially if they are not currently paying their gap fee electronically.

You can help your families understand what the changes mean for them by:

Printing and displaying this changes to CCS poster and/or this changes to CCS fact sheet at your service.
Sharing these changes with your families via social media using the changes to CCS kit.
Telling your families when the CCS changes will take effect with regard to your service’s billing practices.
Encourage them to estimate their new fees using the Starting Blocks CCS Calculator
Direct any families who have questions to contact Services Australia.

What do your families need to do?

To ensure that families receive the right amount of CCS from July 10 2023 they need to make sure their income estimate is correct. If they already receive CCS, the changes will be applied automatically from July 10.

If you have families that don’t currently claim CCS but are now eligible due to the increased income limit, you can direct them to make a claim using their Centrelink online account through myGov from July 10, 2023.

If any families are not paying their gap fees electronically, they will need to set this up prior to the start of the new financial year.

If they need more information about CCS and ACCS, they can find this on the Services Australia website.

Enrolment Hub are here to help Childcare Centres!

These changes will see more families eligible to receive CCS from the Federal Government, providing a fantastic opportunity for early learning providers to build centre occupancy, increase centre revenue and help families maximise their new Child Care Subsidy entitlements.

If you’re looking to do this without spending a fortune, our Child Care Subsidy (CCS) Optimisation Guide is here to show you how.

This all-in-one guide will help you navigate the complexities of the Child Care Subsidy, increase your centre occupancy and successfully implement sessional care at your centre – often leading to increased occupancy, increased revenue, and decreased staffing costs.

You can download it below.