Child Care Subsidy Changes: What You Need To Know

Changes to the Child Care Subsidy start today, so we’ve put together a handy guide so you know exactly what you need to do and what’s changing.

There have already been some major changes to child care support, with the annual cap for working families removed from December 10, 2021. And now more Child Care Subsidy (CCS) changes are on the way for around 250,000 Aussie families. On average, these families will be more than $2,200 better off, each year.

Changes to the Child Care Subsidy 2022

From March 7, 2022 families with more than one child aged five or under in care will get a higher subsidy for their second and younger kids.

Your family may be eligible if you:

Earn less than $354,305
Have more than one child aged five or under in child care

Your children who are eligible for the higher rate will get a 30% higher subsidy, up to a maximum of 95%.

You’ll still keep getting your income tested CCS rate for all of your children.

Who will get the higher Child Care Subsidy rate?

Services Australia will assess all of the children in your family, identify the ‘standard’ rate child (usually the eldest CCS-eligible child aged five or under), and then identify the children who’ll get the higher rate.

If you’re already getting CCD, you don’t need to do anything, your CCS will automatically increase for the eligible children in your family.

What will it mean for my family?

It depends on what your family is earning, but here’s a couple of examples:

If your family is earning $110,000 a year and has two kids in care for four days a week, you’ll be around $100 a week better off.
If your family is earning $80,000 with two kids in child care, you’ll save about $54 a week.
A family earning $140,000 a year will be about $125 a week better off.

Want to know more about the changes to the Child Care Subsidy? Head to Services Australia.

66 Comments

- - mom485054 said
  - 07 Mar 2022
    9:05 pm
When will governments (which usually equates to men) understand that adequate childcare is important for ALL kids not just those of working mums. The social skills that are developed are so important! And for the economically right leaning governments, more mums with time = more mums looking for paid work!
- jekalouise88 replied
  
  07 Mar 2022 , 9:38 pm
  I think they still subsidise around 36 hours of care per fortnight for people who aren’t working. If you choose a centre that does shorter sessions to help with just this and go for say 6 hour sessions, that can cover you for 3 days per week – even without being a working parent.
  - jekalouise88 replied
    
    07 Mar 2022 , 9:43 pm
    
    Good start centres definitely do the shorter sessions and I’m sure there are others too!!
- - MissKarlz said
  - 07 Mar 2022
    9:01 pm
So good as it benefits working families and encourages more mums to the workforce

- - Mumof3boyos said
  - 07 Mar 2022
    8:17 pm
Any dollar saved is fabulous in my books.

- - Forgetful Mumma said
  - 07 Mar 2022
    10:29 am
So glad I don’t need to use childcare as it seems like a lot of work! I was chatting to a friend recently who said childcare for his twins was way to expensive, and like most, it almost doesn’t seem worth both him and his wife working

- - Ellen said
  - 07 Mar 2022
    8:38 am
Strange that with these changes the higher your income, the better you’re off
- mom468034 replied
  
  07 Mar 2022 , 10:20 am
  Yes, I was thinking this too.
- - mum300445 said
  - 06 Mar 2022
    10:46 pm
This is such amazing news for my family! Will make a big difference for us!

- - RonnieDe said
  - 06 Mar 2022
    9:41 pm
Things are for ever changing, good to know the latest info.

- - sharna_booth_weinrowski said
  - 04 Mar 2022
    9:46 am
such critical info for all families

- - mom485659 said
  - 03 Mar 2022
    7:38 pm
Couldn’t of come at a better time for my family. So happy

- - SAS185 said
  - 03 Mar 2022
    4:54 pm
Interesting to know

- - Carolineb said
  - 01 Mar 2022
    7:06 am
Great to see this changes come in especially for those with more than one child. Looks like more parents can now return to the workforce and not have all their pay go to daycare fees.

- - ~Loui~ said
  - 28 Feb 2022
    11:35 pm
This will be beneficial to so many families.

- - rovermum said
  - 28 Feb 2022
    11:34 am
I hope it’s helpful for those who need it.

- - mom460227 said
  - 28 Feb 2022
    7:22 am
So helpful for the people who really need it

- - BellaB said
  - 27 Feb 2022
    7:15 pm
This should help a lot of people.

- - mumma said
  - 27 Feb 2022
    6:32 pm
I really do hope this makes a difference for alot of families.
In my town, they learn we will be better off and then do a price hike. A whole wage can go to childcare
- Lovesthecuddles replied
  
  04 Mar 2022 , 10:14 pm
  It’s sad when this happens, as soon as the government gives a benefit the provider puts up the price.
- - Mumof3boyos said
  - 26 Feb 2022
    9:36 pm
Child care in one of my biggest expenses, it’s so hard

- - mom323673 said
  - 26 Feb 2022
    3:54 pm
Thanks for the information.. childcare subsidy kind of confused me so I never took my son.

- - FE_83 said
  - 26 Feb 2022
    2:51 pm
First born started preschool this year I have no idea how to get this started, like who do I talk to, to add this onto. All so confusing.

- - mom480417 said
  - 26 Feb 2022
    2:13 pm
I will have to figure out where do we stand. My older one goes to school from this year and we are planning to out little one in child care or elc. Have never claimed a single $ from the govt. Yet for childcare. So confusing at times.