Child Care Subsidy

Child Care Subsidy

The Child Care Subsidy assists families with the cost of approved or registered childcare. The Child Care Subsidy that commenced on 2 July 2018:

• replaced the Child Care Benefit (CCB) and Child Care Rebate (CCR) with a single, means-tested subsidy
• is generally paid directly to the child care providers to be passed on to families
• is simpler than the previous multi-payment system
• is better targeted and provides more assistance to low and middle income families.

Approved childcare can include long day care, family day care, outside-school-hours care, vacation care, in-home care and some occasional care services. To find an approved childcare centre near you go to the myChild website or call the Child Care Access Hotline on 1800 670 305 (or 1800 810 586 for TTY service for the hearing or speech impaired).

Registered childcare can include care provided by grandparents, relatives, friends or nannies who are registered as carers with Centrelink. In some cases, it can also include care provided by individuals in private preschools, kindergartens and outside-school-hours services, including before and after-school care, vacation care and holiday programs. Payments for registered care are made as a lump sum payment only. You need to provide all original receipts for the period you are claiming, and you must submit your claim within a year of the care being provided.

To be eligible, the child in your care must be immunised, on an immunisation catch-up schedule, or exempt from immunisation for medical reasons. If you are eligible for the Child Care Subsidy, it will be paid directly to your childcare service. If childcare is not part of your child’s approved Case Plan, then you will have to cover the remainder of the fee, or the ‘gap’, yourself. However, if it is part of the approved Case Plan, FACS or your agency may cover the ‘gap’.

Additional Child Care Subsidy (ACCS)

The Additional Child Care Subsidy (ACCS) is a payment on top of the Child Care Subsidy that provides targeted fee assistance to families and children facing barriers to accessing affordable child care.

ACCS (child wellbeing)

The vast majority of carers with children under care arrangements in NSW will be eligible to receive an additional payment through the ACCS (child wellbeing). In most cases the full cost of child care will be covered.Whether or not there will be a gap depends on how much the provider charges.

Eligible families will receive a subsidy equal to the actual fee charged, up to 120% of the Child Care Subsidy hourly rate cap, for up to 100 hours per fortnight. The family will not have to meet activity test requirements.

Your child care providers will apply for the ACCS (child wellbeing) on your behalf. In order to do this, they should be made aware of your child's care arrangements. You will need to liaise with your caseworker to ensure your provider receives the necessary document to assist with the application or provide it yourself directly. This may include a letter from your agency, your child's case plan or a court order.

Carers receiving the ACCS (child wellbeing) for a child in their care will have it paid directly to the approved childcare service. If childcare is not part of your child’s approved Case Plan, then you will have to cover the remainder of the fee, or the ‘gap’, yourself. However, if it is part of the approved Case Plan, FACS or your agency may cover the ‘gap’.

ACCS (grandparent)

The ACCS (grandparent) will provide up to 100 hours of subsidised care per fortnight for grandparents who:

• receive income support
• are the principal carer with 65% or greater carer responsibilities
• have substantial autonomy for the day-to-day decisions about the child's care, welfare and development

Eligible families will receive a subsidy equal to the actual fee charged, up to 120% of the Child Care Subsidy hourly rate cap, for up to 100 hours per fortnight. These grandparents will not have to meet activity test requirements.

ACCS (temporary financial hardship)

The ACCS (temporary financial hardship) will provide short-term increased child care fee assistance to families who are experiencing significant financial stress due to exceptional circumstances, to ensure continuity of care.

Eligible families will receive a subsidy equal to the actual fee charged, up to 120% of the Child Care Subsidy hourly rate cap, for up to 100 hours per fortnight. The family will not have to meet activity test requirements. This support will be provided for a maximum of 13 weeks per event.

ACCS (transition to work)

The ACCS (transition to work) will provide support to families who are transitioning to work from income support by engaging in work, study or training activities.

To be eligible for Transition to Work, families need to:

• receive one of the following payments:
  • Parenting Payment
  • Newstart Allowance
  • Disability Support Pension
  • Youth Allowance
  • a payment prescribed by the Minister's rules.
• have a Job Plan in effect (employment pathway plan within the meaning of the Social Security Act 1991 (Cth), or a participation plan under section 94B of the Social Security Act 1991 (Cth).

Transition to Work provides a subsidy of 95% of the actual fee charged up to 95% of the Child Care Subsidy hourly rate cap. Hours of assistance will be determined by the Child Care Subsidy activity test. Individuals may continue to receive the subsidy for 12 weeks after they gain employment and their income support payments cease.