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 $68,163 85%
More than $68,163 to below $173,163 Tapering to 50%*
$173,163 to below $252,453 50%
$252,453 to below $342,453 Tapering to 20%*
$342,453 to below $352,453 20%
$352,453 or more 0%

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

The lower income threshold ($68,163) 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 2019-20 income year.

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: 1 July 2019