Child Care Subsidy – Kiddiewinks

CHILDCARE SUBSIDY

Flexible Hours for your Child Care Subsidy

We know that there is no one size fits all option for our families when it comes to early childhood education and care. That is why Kiddiewinks ELCC are giving families the freedom to choose which hours best suit their needs. You can choose from our nine-hour, ten-hour or full day sessions and make the most out of the Child Care Subsidy.

This is designed to reduce out of pocket costs and increase access to subsidised hours, the new flexible model is part of our commitment to providing greater access to quality early childhood education and care. Flexible Hours options may not work for everyone but at our centres you have the freedom to choose the option. To find out which flexible hours option best suit you, use the Child Care Subsidy Calculator below.

Please talk to your Director who will be able to assist you with any questions you may have.

ONLINE CHILD CARE SUBSIDY CALCULATOR

Calculating your CCS

Your CCS will be calculated using three components:

CSS %
Total family income
Hours of care
Activity of least active family member
Hourly rate
Lower of benchmark fee and centre hourly fee

CCS = CCS % x Hours of Care x Hourly Rate

Family income is calculated from the combined household income
The activity test is calculated using the parent with the LEAST activity
The government are setting an annual benchmark rate, therefore the calculation of CCS is determined by the lower of the benchmark rate or the centre’s hourly fee.

Your family’s combined income will calculate the CCS percentage you’re entitled to. Remember, you will need to contact Centrelink when your combined income increases or decreases.

Family income CCS %

Family Income	Child Care Subsidy %
$66,958	85%
$66,958 – $171,958	Subsidy reduces 1% for every $3,000 over $66,958
$171,958 – $251,248	50%
$251,248 – $341,248	Subsidy reduces 1% for every $3,000 over $251,248
$341,248 – $351,248	20%
$351,248+	Nil

These tax brackets will be adjusted as per CPI every financial year.

Level of activity

Hours of activity (per fortnight)	Maximum number of hours of subsidy (per fortnight)
8 to 16 hours	36 hours
16 to 48 hours	72 hours
More than 48 hours	100 hours

CCS is linked to how much a family contributes to the Australian economy through activity. This activity level is calculated from the parent with the lowest number of hours of activity.

Activity + Caps

What counts as activity?

Under the new system, you will only be able to access the Child Care Subsidy if you are doing suitable activity and the amount of activity will then determine how many hours of Childcare Subsidy you are eligible for.

Activity counts as:

Paid work (including unpaid lunch breaks)
Commute time from childcare centre to work (excludes time travelling form home to childcare centre and vice versa)
Authorised leave (eg maternity leave, long service leave, annual leave etc)
Unpaid leave of up to 6 months
Unpaid work in a family business
Setting up a new business
Study
Training and study (includes semester breaks)
Work experience/internships (whether paid or not)
Volunteering
Looking for work (eg internet research, contacting employers, preparing resumes/letters of application, preparing for and attending job interviews, travel time for interviews)

To help families increase their hours of activity, families can volunteer at Kiddiewinks ELCC – see our Director for more details.

Concerned you won’t have enough activity?

There may be some families that lose the level of childcare funding support they have become used to as a result of the activity test. However, please note:

Activity is based on the family’s estimate over a thirteen week period
For casual/contract/itinerant workers whose hours may vary from week to week, you should pick the week with the highest level of activity in the thirteen week period and use that as your level of activity
You can go onto myGov and change your activity level at any time
While you do not have to verify your activity, the Government has said that it will look to audit about 10% of families each year to seek some form of verification that the activity is valid
Families earning less than $64,710 are exempt from activity tests for up to 24 hours care per fortnight

The new caps

The current cap of $7,500 per child has been updated depending on your family’s combined income.

Families earning less than $186,958 = no cap
Families earning $186,958 to $351,248 = $10,190 cap
Families earning over $351,248 are not eligible for CCS

Note: the government will be holding back 5% of CCS paid to families until reconciliation at the end of every financial year. This balance will be paid back to families in their tax return if they are eligible.

What you need to do:

ONE
In April, you will receive a “call to action” notification from Centrelink to register for CSS before 2nd July through an email or letter
TWO
Register for CSS through your MyGov account and provide Centrelink with:
a) Your projected family income for financial year 18/19
b) your activity levels
c) the name of the child care centre your child is currently enrolled at
THREE
You will then receive a notification from Centrelink informing you of your new CCS
a) percentage
b) hours of subsidy

Questions or concerns?

Please talk to your Director who will be able to assist you with any questions or concerns you may have.