Your income can affect it
The Child Care Subsidy percentage you’re entitled to depends on your family’s income.
We'll work out your Child Care Subsidy percentage using your family income estimate.
|Your family income||Child Care Subsidy percentage|
|$0 to $68,163||
More than $68,163 to below $173,163
Between 85% and 50%
|$173,163 to below $252,453||
|$252,453 to below $342,453||Between 50% and 20%
The percentage goes down by 1% for every $3,000 of income your family earns
|$342,453 to below $352,453||20%|
|$352,453 or more||0%|
You can still claim this subsidy even if your family income estimate is $352,453 or more. If you actually earn less than this, we’ll pay you the subsidy you’re entitled to. We’ll do this when we balance your payments at the end of the financial year.
If your family earns $188,163 or less, you won’t have an annual cap on your subsidy.
If your family earns between $188,163 and $352,453 we’ll cap your subsidy. This means we’ll subsidise your fees up to the annual cap of $10,373 per child each financial year.
We’ll withhold 5% of your subsidy. This is to help reduce the likelihood of you getting an overpayment. You’re able to vary this amount to suit your circumstances.
You can do this up to twice a year using your Centrelink online account through myGov. If you’d like to change it more than this, call the Families line.
We use your family income estimate to work out how much subsidy you’ll get. This means at the end of each financial year we’ll balance your payments using your actual adjusted taxable income. We compare this information to make sure we’ve subsidised your child care fees correctly in the financial year.
If you underestimated your family income, you may end up with an overpayment which you’ll need to pay back. We’ll use the amount we withheld to help reduce the debt.
If you overestimated your family income and didn’t get enough subsidy, we’ll pay any outstanding amount directly to you. This will include the amount we withheld.
We use your family income estimate to work out how much family assistance to pay you. This includes Family Tax Benefit (FTB) and Child Care Subsidy (CCS).
We use your adjusted taxable income to work out your eligibility for some payments or services.
What you claim determines how we work out your adjusted taxable income.
We compare your income estimate with your actual income at the end of each financial year. This is to make sure you get the right amount of subsidy.
After the end of the financial year we compare your income estimate with your actual income. This is to make sure we pay you the correct amount of family assistance.
What you need to do to balance your family assistance depends on your circumstances.
If you got an income support payment we may balance your Family Tax Benefit straightaway. If you got Child Care Subsidy you’ll need to confirm your income.
Page last updated: 25 June 2019