Changes to your Childcare Subsidy

The Victorian Government has made changes to the Child Care Subsidy (CCS). From December 10 2021, they are paying a higher subsidy to families with more than one child and removing the annual cap for all families who get CCS.

Annual cap

From 10 December 2021, the Victorian Government is removing the annual cap for all families earning over $190,015 (2021–22 terms). 

This gives families more choice about work and care. If your family has already reached the CCS annual cap before 10 December your CCS may have stopped. Services Australia will automatically reassess your CCS entitlement for this time and they will back pay CCS.

Families with more than one child in care

From 7 March 2022, families with more than one child aged 5 or under in care will get a higher subsidy for their second child and younger children.

Families may be eligible if they:

  • earn less than $354,305
  • have more than one child aged 5 or under in child care.
  • Eligible higher rate children will receive a 30% higher subsidy, up to a maximum 95%.

Families will continue to receive their income tested CCS rate for all children. Children eligible for the higher rate will have the increase automatically included in their CCS percentage reported to services.

For more detailed information, please read the information at Department of Education, Skills and Employment website: https://www.dese.gov.au/higher-CCS

Click here for the free downloadable poster that explains the changes.

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