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CCS updates for new financial year from DESE
Freya Lucas
Jun 07, 2022
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There have been a number of updates to the Child Care Subsidy (CCS) from the Australian Government Department of Education, Skills and Employment (DESE) regarding deadlines or changes which will come into effect from 1 July 2022.
Combined familiesFamilies with more than one child aged five years or younger will receive a higher rate of CCS for second and subsequent children from 1 July 2022. They may also receive back pay from Services Australia for any higher subsidy they were eligible for between 7 March and 30 June 2022.
While for most families the higher CCS began on 7 March 2022, some combined families, where both members of the couple get CCS for different children in their family may be yet to receive the higher rate. Services Australia counts all children in a combined family when determining entitlement to the higher CCS.
Services Australia will send a text message to combined families in early July to advise them the higher subsidy has started for combined families and that arrears may be paid. Families do not need to take any further action in response.
Information for providers has been made available, including examples that show how the higher CCS works.
CCS eligibility: 26-week rule starts soon
From 11 July 2022, a child who has not used care at least once in the previous 26 weeks will no longer be eligible for CCS.
If a child has not attended care since 10 January 2022, their CCS will cancel from 11 July 2022. The rule will apply on an ongoing basis from this date. Families will need to submit a new CCS claim if the child re-commences care. Services Australia will notify impacted families. Providers do not need to take action.
CCS debts will not be raised when applying the 26-week rule. Any changes to CCS entitlement will only apply from a point in time going forward.
The 26-week rule may affect a family’s entitlement to the higher CCS. If a standard rate child’s CCS eligibility ends, Services Australia will reassess all other children in the family to determine:
- the new standard rate child
- new subsidy rates.
If a child starts to attend care again, after their CCS was cancelled, the family can lodge a new claim for CCS. The 26-week rule will not affect any arrears payment made to combined families for any higher subsidy they were eligible for between 7 March and 30 June 2022.
Questions from families should be directed to Services Australia.
Balancing deadlines approaching
The end of financial year marks two important deadlines for families:
- the first deadline for confirming 2020–21 income
- the second deadline for confirming 2019–20 income.
Families must take action by 30 June to avoid losing CCS or incurring a debt.
2019–20 financial year
Most families confirmed their 2019–20 income before the first deadline on 30 June 2021. Families who haven’t confirmed their 2019–20 income must do so by 30 June 2022. If they don’t, they may need to pay back all the CCS they got for 2019–20.
More information about debts is available on Services Australia’s website.
They will also lose their CCS and Additional Child Care Subsidy (ACCS) eligibility from the first CCS fortnight of the 2022–23 financial year. These families will need to make a new claim if they wish to get a reduced fee again.
Families can only claim CCS again once they have:
- confirmed their income; and,
- repaid any current or previous child care related debt; or,
- entered into a repayment arrangement.
Families who miss the second deadline will also miss out on any top up of CCS for which they may have been eligible.
2020–21 financial year
All families must confirm their 2020–21 income before the first deadline on 30 June 2022. If they don’t, their CCS will stop. This means they will need to pay full fees when they use child care.
Services Australia can start a family’s CCS again, but only after they’ve confirmed their income. This means families may miss out on CCS.
Families confirm their income by:
- lodging their tax return; or,
- telling Services Australia they don’t need to lodge a tax return. Families can complete an Advise non-lodgement of tax return using their Centrelink online account through myGov or through the Express Plus Centrelink mobile app. They’ll need to do this even if they’ve already told the Australian Taxation Office they don’t need to lodge.
If a parent separates from their partner, Services Australia will also need their ex-partner’s income.
If a parent is concerned that their ex-partner won’t lodge their tax return by the deadline they should call the Families line.
For more information, visit the Services Australia’s website.
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