CCS hourly rate cap and income threshold to rise by around 4 per cent from 8 July 2024

The Department of Education has confirmed that the hourly child care subsidy (CCS) rate cap will rise by 4.1 per cent this year, with all caps for centre based care, outside school hours care (OSHC), family day care (FDC) and in home care adjusted accordingly for the 2024-25 year. 

The increase has been attributed to the rise in inflation rates as measured by the Consumer Price Index (CPI) which reflects increases in the cost of living over the course of the last twelve months. 

Long day care (LDC) and OSHC services will now have a fee cap of $14.29 per hour (compared to $13.73 last year) and FDC will have a $13.29 cap (compared to $12.72 last year).

The rate cap for school aged children has also been adjusted higher for both centre based and OSHC. 

In addition to adjusting rate caps the Department of Education have also confirmed that the income thresholds that determine the amount of CCS a family is entitled to have been scaled higher. 

As of the 8 July 2024 families earning $83,280 or less will be entitled to the maximum subsidy rate of 90 per cent, up from $80,000 last year, an increase of 4.1 per cent, with families earning above $533,280 receiving zero CCS. 

All families earning between $83,280 and $533,280 will see their subsidy received fall by 1 per cent for every $5,000 of income earnt. This calculation has not been rebased higher or adjusted. 

To learn more visit the Department of Education’s website here.