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.

1.1.A.70 Applicable percentage (CCS)

Definition

An individual's (1.1.I.90) applicable percentage is the rate of subsidy an individual is entitled (1.1.E.30) to for a session of care (1.1.S.40) provided to a child in a CCS fortnight (1.1.C.10). The applicable percentage is calculated based on the combined annual ATI (1.1.A.20) of the individual and their partner (1.1.P.30) (if they have one). An individual’s applicable percentage may also be higher if they have more than one child aged 5 or younger.

Standard CCS rates

If an individual's combined annual ATI is equal to or below $83,280 the applicable percentage will be 90%.

If an individual's combined annual ATI is above $83,280 and below $533,280 the applicable percentage will gradually reduce from 90% to 0%, tapering down by 1% for each $5,000 of family income. To calculate an individual's applicable percentage in this income threshold (1.1.I.70), the following formula is used and the result rounded to 2 decimal places:

  • 90 - [(combined annual income - lower income (base rate) threshold ($83,280)) ÷ 5,000]

If an individual's combined annual ATI is equal to or above $533,280 the applicable percentage will be zero per cent. That is, while the individual may be eligible for CCS, they will not have any entitlement to CCS.

Higher CCS rates for multiple children

Note: Calculations for higher CCS rates use the higher CCS rate thresholds.

Families with more than one child aged 5 or under in care may get a higher subsidy rate for their second child and younger children.

If an individual's combined annual ATI is equal to or below $141,321 the applicable percentage will be 95% for second and younger children.

If an individual's combined annual ATI is above $141,321 and below $186,321 the applicable percentage will gradually reduce from 95% to 80%, tapering down by 1% for each $3,000 of family income. To calculate an individual's applicable percentage in this income threshold, the following formula is used and the result rounded to 2 decimal places:

  • 115 - [(combined annual income - lower income (other rate) threshold ($81,321)) ÷ 3,000]

If an individual's combined annual ATI is equal to or above $186,321 and below $265,611 the applicable percentage will be 80%.

If an individual's combined annual ATI is equal to or above $265,611 and below $355,611, the applicable percentage will gradually reduce from 80% to 50%, tapering down by 1% for each $3,000 of family income. To calculate an individual's applicable percentage in this income threshold, the following formula is used and the result rounded to 2 decimal places:

  • 80 - [(combined annual income - third income (other rate) threshold ($265,611)) ÷ 3,000]

If an individual's combined annual ATI is equal to or above $355,611 and below $365,611 the applicable percentage will be 50%.

If an individual's combined annual ATI is equal to or above $365,611 higher CCS rates no longer apply, and all children in the family receive the standard CCS rate.

Note: The lower income (other rate) threshold and lower income (base rate) threshold will be indexed (1.1.I.80) by CPI at the commencement of each financial year and the other thresholds will be increased accordingly.

Act reference: FAAct Schedule 2 Amounts of CCS and ACCS

Policy reference: FA Guide 1.1.I.70 Income thresholds (CCS), 3.5 CCS entitlement, 3.5.1 CCS - combined annual ATI

Last reviewed: