Changes to the Child Care subsidy

Child Care Subsidy is increasing from July 2023, which means child care will be cheaper for most families. It also means some families previously not eligible for Child Care Subsidy will now get it. This change will provide more support for more families across Australia.

Child Care Subsidy changes include:

• The family income limit to get Child Care Subsidy is increasing from $356,756 to $530,000 per annum.
• The maximum amount of Child Care Subsidy is increasing from 85% to 90%.
• Families earning $80,000 or less will get a Child Care Subsidy rate of 90%.
• Families earning over $80,000 may get a Child Care Subsidy rate starting from 90%. This will go down by 1% for each $5,000 of income they earn above $80,000. This rate reaches 0% for families earning $530,000.
• Families earning below $362,408 with more than one child aged 5 or under in care can still get a higher rate for one or more of their children.
• Aboriginal and/or Torres Strait Islander children can get at least 36 subsidised hours of early childhood education and care per fortnight, regardless of their family's activity level.

Changes to Family Assistance Law, which give effect to increases in the subsidy, come into effect on 1 July 2023. From 10 July, families will see an increase in CCS.

For more information, you can read the factsheet HERE or go to the website HERE.