The Australian Government's Child Care Subsidy changes in 2023 bring good news for eligible families, which may make quality child care more affordable and accessible for you.
The changes coming into effect on 10 July 2023 include increased subsidy for most families who already get Child Care Subsidy, and even more families will become eligible to access it.
What is Child Care Subsidy (CCS)?
The Child Care Subsidy is an Australian Government payment that assists families with the costs of child care. Child Care Subsidy is paid directly to approved child care providers to reduce the fees you pay.
The subsidy rate you may be able to claim is based on your family's income and activity levels, as well as the number and age of your children, and the type of care your family uses.
You can get more information about Child Care Subsidy here.
It is important to understand the Child Care Subsidy changes coming into effect in July 2023 as they can affect your subsidy entitlements.
What are the Child Care Subsidy changes in 2023?
The Child Care Subsidy changes in 2023 come into effect from 10 July. Broadly, the changes include:
- The maximum amount of CCS is increasing from 85% to 90% for families earning $80,000 or less.
- Families earning $80,000 or less will get a CCS rate of 90%.
- Families earning over $80,000 get a CCS rate that decreases by 1% for each $5,000 of family income. This rate reaches 0% for families earning $530,000.
- The income limit for CCS is increasing to $530,000 a year. This means more families will be eligible.
- Families earning below $362,408 with more than one child aged 5 or under in child care can still get a higher rate for their second and younger children.
- Families with an Aboriginal and/or Torres Strait Islander child in their care can get at least 36 hours of subsidised care per fortnight.
You can learn more about the changes on the Department of Education website.
What does this mean for you if you already receive Child Care Subsidy?
From July 2023, most families using child care will get more subsidy.
If you are already receiving Child Care Subsidy, you don’t need to do anything to get the new rate. The changes will apply automatically for you on 10 July. To work out what your new rate will be, use the Starting Blocks Child Care Subsidy Calculator.
Aboriginal and/or Torres Strait Islander children can get at least 36 hours of subsidised care per fortnight and your family may be eligible for more hours based on your circumstances. If you would like to increase the hours of care beyond 36, contact Services Australia to update your information; it’s voluntary to do so.
This increased support may:
- Assist you to return to work or study
- Help with the cost of living
- Benefit even more children by increasing access to quality education and care
The Australian Government’s July 2023 Child Care Subsidy TV commercial. The service shown in the ad was proudly filmed at a KU service in May this year.
How can I apply to claim Child Care Subsidy?
Visit Services Australia - How to Claim to check if you can claim Child Care Subsidy. From here, you can find helpful information which will guide you through the process to make a claim.
Are KU centres eligible for Child Care Subsidy?
At KU, we understand the financial challenges that many families face when it comes to child care expenses. We are dedicated to supporting families and ensuring that high-quality child care remains accessible to all.
Find your nearest Child Care Subsidy eligible KU centre in New South Wales or Victoria.
What other subsidies might be available to me?
The Additional Child Care Subsidy (ACCS) provides extra support to families eligible for the Child Care Subsidy, who may need extra help with child care fees. It may be available to you if you have additional circumstances, including one of the following:
- a grandparent who is eligible and getting an income support payment
- moving from specific income support payments to work
- experiencing temporary financial hardship
- providing care for a child who is vulnerable or at risk of abuse, harm or neglect.
You can visit Services Australia’s website to learn more about the Additional Child Care Subsidy.
This article provides general information about the Child Care Subsidy changes in 2023. The details may vary based on individual circumstances, and it is advisable to consult with relevant government authorities or seek professional advice for accurate and personalised information.
A note about the language used in this article
The Early Childhood Education and Care (ECEC) sector encourages the use of consistent, affirmative and accurate language when talking about ECEC. This supports the professionalism of the sector and helps to emphasise and build recognition of the importance of ECEC.
As such, KU Children’s Services discourages the use of the term ‘childcare centre’. ‘Childcare centre’ implies a focus on physical facilities and on simply providing care for children, rather than on the importance and full context of the education and care provided.
Terms such as ‘early childhood service' and ‘ECEC service’ more accurately represent the broader scope of services provided by early childhood professionals. These services support the holistic development of the child’s social, emotional, cognitive and physical abilities in a way that meets each child’s needs, to build a solid and broad foundation for lifelong learning and wellbeing. This can include allied health provision, Aboriginal and Torres Strait Islander programs, early intervention support programs and other additional support services offered by early childhood services within their service delivery.
Within this article we have chosen to use terms commonly known and referred to by families when they are seeking information online about early childhood education and care. An example of this is the use of the term ‘childcare centre’ rather than ‘early childhood service’. These terms may be more accessible and understandable to a wider audience who may not be familiar with the ECEC sector's preferred terminology.