3.5.3 CCS - Hourly Rate Caps

Summary

The type of approved child care service (1.1.A.90) a family chooses to use is 1 of the 3 factors that will determine a claimant's level of CCS (the others being combined annual family income (3.5.1) and the family's activity test result (3.5.2)).

This section includes:

  • hourly rate caps,
  • child attending school,
  • examples.

Hourly rate caps

The applicable percentage (1.1.A.70) of CCS families receive during the financial year is based on their estimated combined annual ATI (1.1.A.20). A families' CCS percentage is used in combination with the child care fees charged to calculate the amount of subsidy per hour each family is entitled to receive for their child's attendance at a session of care (1.1.S.40). This will be the applicable percentage of the actual fee charged, or of the relevant hourly rate cap (1.1.H.20) (whichever is lower).

Where a child care service charges a fee that is less than the hourly rate cap, families will receive their applicable percentage of the actual fee charged. Where a service charges a fee that is equal to or above the relevant rate cap, families will receive their applicable percentage of the hourly rate cap.

The hourly rate cap that applies to children attending CBDC and OSHC is determined by whether the child attends school. The applicable hourly rate cap for children below school age attending CBDC or OSHC is the CBDC hourly rate cap ($11.77). The applicable hourly rate cap for school aged children attending CBDC or OSHC is the outside school hours care hourly rate cap ($10.29)

The FDC hourly rate cap will apply to all children attending a family day care service, regardless of whether the child is school aged or not.

The hourly rate caps are:

Service type

Hourly rate cap

(children below school age)

Hourly rate cap

(school aged children)

CBDC $11.77 $10.29
OSHC $11.77 $10.29
FDC $10.90
IHC (per family) $25.48

Note: The hourly rate caps will be increased by the CPI at the commencement of each financial year. The figures in this topic relate to the 2018-19 financial year (for CCS purposes 2 July 2018 to 30 June 2019).

Child attending school

For the purpose of the hourly rate caps, a child is taken to attend school from the first day of scheduled physical attendance, and where any of the following apply:

  • the child has turned 6,
  • the child attends the year of school before grade 1,
  • the child attends primary or secondary school,
  • the child is home schooled as recognised in the state or territory where the child resides,
  • the child would be attending school (the year of school before grade 1, primary school or secondary school), except that the child is absent from school, or is on holidays.

Information about the child's school status will be declared by individuals at the time of making a claim (1.1.C.27). If circumstances change, for example, a child starts attending primary school, individuals are required to advise Centrelink of the change.

Examples

Example 1: The Huang family is charged $100 per session for sessions of 10 hours duration for their 3 year old daughter's attendance at a CBDC service - that is, $10 per hour. As this is less than the hourly rate cap of $11.77 for a child below school age attending a CBDC service, their subsidy will be determined as a percentage of the actual fee charged - $10 per hour. If the family's combined annual income is $65,000, they will be entitled to a subsidy of $8.50 per hour (that is, 85% of $10).

Example 2: The Mahunta family is charged $130 per session for sessions of 10 hours duration for their 1 year old son's attendance at a CBDC service - that is, $13 per hour. Because this is more than the hourly rate cap of $11.77 for a child below school age attending a CBDC service, the family's subsidy will be determined as a percentage of the rate cap of $11.77. If the family's combined income is $65,000 they will be entitled to a subsidy of $10.00 per hour (that is, 85% of $11.77).

Act reference: FAAct Schedule 2 Amounts of CCS and ACCS

FA(Admin)Act section 67FB Notice of change of circumstances: individuals

CCSMinRules section 16 Determining hourly rate cap that applies for session of care

Policy reference: FA Guide 3.5 CCS Entitlement, 5.2.1.30 Change of Rate Circumstances

Last reviewed: 2 July 2018