3.5.1 CCS - combined annual ATI
Combined annual ATI (1.1.A.20) is one of the 3 factors that will determine a claimant's level of CCS (the others being the family's activity test result and the applicable hourly rate cap (1.1.H.20)).
This section includes:
- determining an individual's CCS percentage
- entitlement to the higher CCS
- providing an annual income estimate
- change in annual income estimate
An individual's actual CCS entitlement (1.1.E.30) for a financial year will be worked out at reconciliation (1.1.R.10), usually after the individual (1.1.I.90) has completed their tax return and they (and their partner's (1.1.P.30) if they have one) actual ATI is known. As an individual's actual ATI is not known during the year, determinations of CCS entitlement are calculated according to the individual's estimate of what their combined ATI will be for the financial year.
Any difference between the amount of CCS an individual was paid during the year based on their estimated ATI and their actual CCS entitlement based on their actual ATI will be corrected at reconciliation (that is, debt raised if they were overpaid, and a lump sum payment made if they were paid less than they were actually entitled to).
Determining an individual's CCS percentage
This table shows the percentage of child care fees the government will contribute based on an individual's combined annual ATI:
|Combined annual ATI*||Applicable CCS percentage of the actual fee charged or the relevant hourly rate cap (whichever is lower)|
|Equal to or below $80,000||90%|
Above $80,000 and below $530,000
Decreasing to 0%
Subsidy decreases by 1% for each $5,000 of family income
|Equal to or above $530,000||0%|
*The lower income threshold ($80,000) 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 2023-24 income year.
Families with incomes of $530,000 or more have an applicable CCS percentage of 0% - that is, they are not entitled to CCS.
Entitlement to the higher CCS
Families with multiple children who are CCS-eligible may receive a higher CCS rate for their second and younger children.
Eligible families may receive an additional 30% subsidy, on top of their income tested CCS rate, for their second and younger children aged 5 or under. This applies up to a maximum subsidy rate of 95%. Families will continue to receive their income tested CCS rate for all other children.
|Combined family income||Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly rate cap)|
|Up to $138,118||95%|
|More than $138,118 to below $183,118||Decreasing to 80% by 1% for each $3,000 of family income|
|$183,118 to below $262,408||80%|
|$262,408 to below $352,408||Decreasing to 50% by 1% for each $3,000 of family income|
|$352,408 to below $362,408||50%|
|$362,408 or more||Decreasing from 50% to 0% by 1% for each $3,000 of family income|
If CCS eligibility for one or more children stops, entitlement to higher CCS for other children aged 5 or under may be reassessed.
Children who are entitled to both the higher CCS rate and ACCS will be paid the ACCS rate.
Sessions of IHC do not attract the higher subsidy for younger children. This is because IHC is subsidised on a family rather than per child basis.
However, children aged 5 or under in IHC are included in the family unit when determining access to the higher CCS rate.
Providing an annual income estimate
All individuals are required to provide a 'reasonable' ATI estimate at claim for CCS, irrespective of whether they receive an income support payment (1.1.I.50). Where an individual is a member of a couple (1.1.M.50), the individual will need to provide an estimate of both their and their partner's ATI for that year.
Individuals will also be required to provide a reasonable ATI estimate for each new financial year.
Change in annual income estimate
When a family experiences a change in circumstances that affects their eligibility and/or entitlement they are required to notify Centrelink of this new information as soon as possible. This means individuals are required to give a new income estimate when a change in circumstances (such as starting a new job) means the current ATI estimate is no longer accurate.
When an individual provides a new ATI estimate, it will be applied from the beginning of the next CCS fortnight (1.1.C.10). If an individual's income changes (for example, they start a new higher paying job), they should update their ATI estimate as soon as possible to ensure future payments are based on current information (and reduce the risk of debt at reconciliation).