We have some exciting news for families!
From 10th July 2023, the Government is increasing the Child Care Subsidy (CCS) for families who earn under $530,000. These changes will see families enjoy big savings on their out-of-pocket childcare costs!
Some key points:
- Most families with a child in care will benefit with increased CCS.
- Some families not previously eligible for CCS will now be eligible.
- The threshold to earn maximum CCS has increased, meaning families who earn $80,000 will now enjoy CCS of 90%.
- Approximately 96% of families with a child in care who earn under $556,000 will benefit from these changes.
Let’s look at an example:
Sarah and Joe earn a combined family income of $180,000. Their little boy, Jack, attends their local Imagine Childcare centre three days a week, where the fees are $140 a day per child. Their CCS entitlement is currently 50%, however with the new Government changes to CCS, this will increase to 70% in July 2023. This means that Sarah and Joe will now enjoy an extra saving of $28 a day on their childcare fees. That’s a massive $72 per week saving in their back pocket, on what they would normally pay for Jack’s three days in care.
Use the table below for a general idea of the savings your family could be making:
Please note: The July 2023 changes do not affect the Higher Sibling Subsidy
On 7th March 2022, the Government introduced the Higher Sibling Subsidy. Under the Higher Sibling Subsidy, families with two or more children in care under the age of five, receive a 30% increased rate of CCS for the second child. This has been a great relief for families, particularly those families with parents returning to the workforce, as they have been able to increase the hours and days they have their children in care.