The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.2.7 Additional child care subsidy (ACCS) - description

Objectives of ACCS

ACCS aims to assist families and children facing barriers in accessing affordable early childhood education and care by providing additional fee assistance to families and children in need.

Types of ACCS

There are 4 types of ACCS:

  • ACCS (child wellbeing) (2.8.1) for children at risk of serious abuse or neglect
  • ACCS (grandparent) (2.8.2) for grandparents on income support (1.1.I.50) who are the principle carer of their grandchildren
  • ACCS (temporary financial hardship) (2.8.3) for families experiencing temporary significant financial hardship
  • ACCS (transition to work) (2.8.4) for families transitioning from income support to work.

ACCS eligibility

Eligibility for ACCS is determined in relation to each session of care (1.1.S.40) delivered by an approved child care service (1.1.A.90).

An individual (1.1.I.90) is eligible for ACCS for a session of care provided by an approved child care service to a child if, at the time the session is provided:

  • the individual meets the eligibility criteria for CCS, and
  • the individual (or child in the case of ACCS (child wellbeing)) meets the eligibility criteria for one type of ACCS.

An approved provider is eligible for ACCS (child wellbeing) under a Provider Eligible Arrangement (4.13.2.40) if they meet the eligibility criteria.

ACCS entitlement

The amount of ACCS an individual is entitled (1.1.E.30) to is dependent upon the type of ACCS they are eligible for.

The table below shows the general number of hours subsidised and amount of subsidy available for each type of ACCS. More hours or a higher rate may be available in exceptional circumstances (3.5.5).

Type of ACCS Number of hours subsidised Subsidy amount
Child wellbeing (2.8.1) 100 hours per fortnight
  • 100% of the fee charged where it’s equal to or below the hourly rate cap
  • Up to 120% of the hourly rate cap where the fee charged is above the hourly rate cap
Grandparent (2.8.2) 100 hours per fortnight
  • 100% of the fee charged where it’s equal to or below the hourly rate cap
  • Up to 120% of the hourly rate cap where the fee charged is above the hourly rate cap
Temporary financial hardship (2.8.3) 100 hours per fortnight
  • 100% of the fee charged where it’s equal to or below the hourly rate cap
  • Up to 120% of the hourly rate cap, where the fee charged is above the hourly rate cap
Transition to work (2.8.4) Dependent on activity level
  • 95% of the fee charged where it’s equal to or below the hourly rate cap
  • Up to 95% of the hourly rate cap where the fee charged is above the hourly rate cap

How ACCS is paid

ACCS is paid to approved providers to pass on as a fee reduction to individuals. ACCS is not subject to withholding or reconciliation (1.1.R.10).

Act reference: FAAct section 85BA Eligibility for CCS, section 85CA Eligibility for ACCS (child wellbeing), section 85CG Eligibility for ACCS (temporary financial hardship), section 85CJ Eligibility for ACCS (grandparent), section 85CK Eligibility for ACCS (transition to work), Schedule 2 Amounts of CCS and ACCS

FA(Admin)Act section 67EB Payments to providers of individuals' entitlements to CCS or ACCS by fee reduction, section 67EC Payment directly to individuals of entitlements to CCS or ACCS

CCSMinRules Part 2 Division 2 When children are at risk of serious abuse or neglect for ACCS (child wellbeing), Part 2 Division 3 Temporary financial hardship, Part 2 Division 3A Eligibility for ACCS (grandparent), Part 2 Division 4 Transition to work

Policy reference: FA Guide 2.6.1 CCS eligibility, 2.8 ACCS overview, 3.5 CCS entitlement, 6.4.1 Overview of reconciliation

Last reviewed: