CCS payment amounts explained. The numbers below are based on currently published figures for FY 18/19.
This is a general guide only. The parent must confirm the enrolment on mygov to receive any subsidy
Use the Centrelink calculator for an estimate tailored to individual circumstances.
On completion of their CCS application to Centrelink a parent will receive a letter with their details if successful showing their entitlement. It will contain a section that should look like this.
This contains the information needed to use the calculator.
Based on combined family annual income. The maximum rate payable is 85%.
The maximum number of hours of care the government will subsidise each fortnight per child.
Where there are 2 parents it is based on the parent doing the least amount of approved activities. Eg if 1 parent works full time and the other works part time it is based on the hours of the part time parent.
This will be at most 100 hours and could easily be less as in the example above.
The parent will be paying full price for any hours above their fortnightly limit so their rebate could change from week to week if they use up all (or most of) their allocated hours in the first week of the fortnightly cycle.
Different maximum hourly caps apply depending on whether the child is attending Centre Based Care (Long Day Care and Occaisonal Care) , Outside School Hours Care (Before School , After School , Vacation Care) , Family Day Care or In Home Care.
Note : these are maximum rates payable , if the hourly rate of care is less than the maximum rate then the subsidy will be paided based on the actual hourly rate. (Session Rate / Session Hours)
(As at July 2019) * Centre Based Care : $11.98 * Family Day Care : $10.90 * OSHC : $10.48 * In Home Care : $32.58 (per family, not per child)
The government will hold back 5% of Child Care Subidy that the parent would otherwise be entitled to as an offset for reconciliation when the parent submits their tax returns.
It’s about balancing the hours eligible vs the capped rate that will be paid. CCS only pays per hour eligible, up to the capped rate (bearing in mind the % eligible plays a part too in the remaining parent Gap)
But if we are just talking hours and capped rate paid for a minute and making up the following scenarios then this is how it would play out.
Max hours paid is 100 - if eligible for 100 hrs a fortnight. If you are open 12 hrs a day and someone comes 5 days a week that is 120 hrs. So dependent on how much you charge a day, you play around with the hours so that they get the most CCS bearing in mind the capped rate.
Eg. LDC is capped at 11.98 so if you are charging $120 a day - then 120 / 12 hrs is $10 well below the capped rate but only 100 hrs a fortnight will be paid leaving 20 hrs at full price (20 x $10 = $200)
Now say a child was only eligible for 48 hrs. at 12 hrs that is 4 days a fortnight, rest would be full price.
An 11 hr session code would still only give her 4 days (with 4 remaining hrs paid of a 5th day. 120 / 11 = $10.90 still under the cap
A 10 hr session code would give her 4 days and 8 hrs of the 5th day paid but 120 / 10 = $12 Still fairly close to the $11.98 (2 cents in every day paid by the parent in full plus any % difference) In this scenario a child attending on a 5th day would have less parent GAP then if they were on a 12 hr session code at the same price.
Also on a 10 hr session code the person attending full time, and eligible for 100 hrs only loses 2 cents in every hr ( not 20 hrs a fortnight on the 12 hr session code)
A 9 hr session code would give the lady eligible for 48 hrs more days 9 x 5 = 45 hrs so she would be able to get 5 plus days paid CCS however you couldn’t keep the price at $120. 120 / 9 = $13.34 well above the capped rate. Does that make sense?
You are just playing around with the subsidy estimator until you get the best session code for the relevant family
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