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 $69,390 85%
More than $69,390 to below $174,390 Tapering to 50%*
$174,390 to below $253,680 50%
$253,680 to below $343,680 Tapering to 20%*
$343,680 to below $353,680 20%
$353,680 or more 0%

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

The lower income threshold ($69,390) 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 2020-21 income year.

Explanation: The lower income threshold is subject to indexation (1.1.I.80). For CCS purposes, the indexed amounts take effect from the first Monday after the last CCS fortnight that began in the last financial year ends. For the 2020-21 financial year, the indexed CCS rates are effective from Monday 13 July 2020.

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 2020