1.1.I.70 Income thresholds (CCS)

Definition

For the purposes of CCS, income thresholds are used to identify the applicable percentage of CCS (1.1.A.70) when determining an individual's (1.1.I.90) CCS entitlement (1.1.E.30).

This table shows the percentage of child care fees the Australian Government will contribute based on the combined annual ATI (1.1.A.20) of the individual and their partner (1.1.P.30) (if they have one):

Combined family income Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly rate cap)
Up to $66,958 85%
More than $66,958 to below $171,958 Tapering to 50%*
$171,958 to below $251,248 50%
$251,248 to below $341,248 Tapering to 20%*
$341,248 to below $351,248 20%
$351,248 or more 0%

*Subsidy tapers down by 1% for each $3,000 of family income.

The lower income threshold ($66,958) will be indexed by CPI at the commencement of each financial year and the other thresholds will be increased accordingly. The figures in this table relate to the 2018-19 income year (for CCS purposes 2 July 2018 to 30 June 2019).

Explanation: The lower income threshold is subject to indexation (1.1.I.80), for CCS purposes this takes effect on the first Monday of the income year. A week for the purposes of CCS commences on a Monday.

Act reference: FAAct Schedule 2 Amounts of CCS and ACCS

Policy reference: FA Guide 3.5 CCS Entitlement, 3.5.1 CCS - Combined Annual ATI, 3.5.3 CCS - Hourly Rate Caps

Last reviewed: 2 July 2018