3.5 CCS entitlement
Introduction
This chapter explains the general provisions involved in determining an individual's CCS entitlement (1.1.E.30).
The amount of CCS an individual (1.1.I.90) is entitled to is dependent upon:
- the combined annual ATI (1.1.A.20) of the individual and their partner (1.1.P.30), if they have one
- the activity level of the individual and their partner, if they have one
- the type of child care service (1.1.A.90) used, and whether the child attends school, and
- whether the individual or their partner has 2 or more children aged 5 or under using child care and earn below the upper income threshold (1.1.I.70) for the higher CCS rate.
Indexation of CCS
Each financial year the CCS first income threshold will be indexed by CPI, and all other income thresholds will be shifted by the same dollar amount to preserve the slope of the subsidy tapers. The hourly rate caps are also indexed by CPI each financial year.
Note: A CCS annual cap, which placed a limit on the amount of subsidy a child could receive per year, applied prior to the 2021-22 financial year and was indexed by CPI each financial year. The annual cap was removed from the 2021-22 financial year onwards.
Act reference: FAAct Schedule 2 Amounts of CCS and ACCS