1.1.A.70 Applicable percentage (CCS)

Definition

An individual's (1.1.I.90) applicable percentage (rate of subsidy) for a session of care (1.1.S.40) provided to a child in a CCS fortnight (1.1.C.10), which is used to determine an individual's entitlement (1.1.E.30), is calculated based on the combined annual ATI (1.1.A.20) of the individual and their partner (1.1.P.30) (if they have one).

If an individual's combined annual ATI is equal to or below $66,958 the applicable percentage will be 85%.

If an individual's combined annual ATI is above $66,958 and below $171,958, the applicable percentage will gradually reduce from 85% to 50%, tapering down by 1% for each $3,000 of family income. To calculate an individual's applicable percentage in this income threshold (1.1.I.70), the following formula is used and the result rounded to 2 decimal places:

85 - [(combined annual income - lower income threshold ($66,958)) ÷ 3000]

If an individual's combined annual ATI is equal to or above $171,958 and below $251,248 the applicable percentage will be 50%.

If an individual's combined annual ATI is equal to or above $251,248 and below $341,248, the applicable percentage will gradually reduce from 50% to 20%, tapering down by 1% for each $3,000 of family income. To calculate an individual's applicable percentage in this income threshold, the following formula is used and the result rounded to 2 decimal places:

85 - [(combined annual income - third income threshold ($251,248)) ÷ 3000]

If an individual's combined annual ATI is equal to or above $341,248 and below $351,248 the applicable percentage will be 20%.

If an individual's combined annual ATI is equal to or above $351,248 the applicable percentage will be zero per cent. That is, while the individual may be eligible for CCS, they will not have any entitlement to CCS.

Note: The lower income threshold will be indexed (1.1.I.80) by CPI at the commencement of each financial year and the other thresholds will be increased accordingly (see 1.1.I.70).

Act reference: FAAct Schedule 2 Amounts of CCS and ACCS

Policy reference: FA Guide 1.1.I.70 Income thresholds (CCS), 3.5 CCS Entitlement, 3.5.1 CCS - Combined Annual ATI

Last reviewed: 2 July 2018