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 $80,000 | 90% |
| More than $80,000 to below $530,000 | Tapering to 0%* |
| $530,000 or more | 0% |
*Subsidy tapers down by 1% for each $5,000 of family income.
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.
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.
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 2023-24 financial year, the indexed CCS rates are effective from Monday 10 July 2023.