How your income affects Child Care Subsidy

The Child Care Subsidy (CCS) percentage you’re entitled to depends on your family’s income.

Family Income

We'll work out how much CCS you’re entitled to using your family income estimate.

If your family earns your CCS percentage will be
$0 to $66,958

85%

More than $66,958 to below $171,958

Between 85% and 50%
The percentage goes down by 1% for every $3,000 of income your family earns

$171,958 to below $251,248

50%

$251,248 to below $341,248 Between 50% and 20%
The percentage goes down by 1% for every $3,000 of income your family earns
$341,248 to below $351,248 20%
$351,248 or more 0%

You can still claim CCS even if your family income estimate is $351,248 or more. If your actual family income is less than $351,248, we’ll pay you the CCS you were entitled to when we balance your payments at the end of the financial year.

Annual cap

If your family earns $186,958 or less, you won’t have an annual cap on your CCS.

If your family earns more than $186,958 and under $351,248 your CCS will be subsidised up to the annual cap of $10,190 per child each financial year.

Withholding

We’ll withhold a percentage of your CCS to help reduce the likelihood of an overpayment. At the end of each financial year we’ll balance your payments. We do this by comparing your income estimate with your actual income. This is to make sure you have received the correct amount of subsidy.

If you overestimated your family income and didn’t receive enough CCS, we’ll pay any outstanding amount directly to you. This will include the CCS we withheld.

If you underestimated your annual family income you may have a debt which you’ll need to pay back. We’ll use the CCS we withheld to reduce the debt.

Page last updated: 17 April 2018