Is your family’s income estimate close to $186,958?

1 March 2019

If you get Child Care Subsidy and your income is close to this amount, an annual cap could affect you.

If your family earns more than $186,958 in a financial year, we cap the total amount of Child Care Subsidy you can get. This means you get a maximum of $10,190 per child per financial year.

At the beginning of the financial year, you might estimate your family’s income to be under $186,958. But if you or your partner start working more, or get a raise, your income may end up being over $186,958. When your income is more than $186,958, any subsidy we’ve paid is now an overpayment. This means you’ll have to pay it back. So if you’ve estimated your income close to $186,958, you should check and update your family income estimate regularly.

If you have more than 1 child in care, this could mean we’ve paid you too much for each child. This could lead to a bigger overpayment.

Some families will reach the cap more quickly depending on how often your child is in care. You’re likely to reach the cap if each child is in care for more than:

  • 33 hours per week for centre-based care
  • 36 hours per week for family day care
  • 38 hours per week for outside of school care
  • 15 hours per week for in-home care.

If you overestimate your family income you may not get the full subsidy you’re entitled to. This means you may pay more for your child care. In this situation, we’ll pay any outstanding amount directly to you. We’ll do this when we balance your subsidy at the end of the financial year.

What you need to do

Update your family’s income estimate every time there’s a change. This will help make sure you get the right amount of subsidy and avoid being overpaid.

It’s easy to update your details online and only takes a few minutes. You can use your Centrelink online account through myGov. Or, you can also update your details using the Express Plus Centrelink mobile app.

While you’re in your online account, you may also want to:

  • update your activity details for Child Care Subsidy
  • update your withholding percentage for Child Care Subsidy.

More information

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Page last updated: 1 March 2019