Your Child Care Subsidy is Changing: Here’s Why It’s A Good Thing

Childcare is becoming more affordable for more families as the Child Care Subsidy is due to make further changes in March 2022. These changes have been brought forward by the Federal government so that we can provide more support to more families. If you are enrolled in one of our Child’s Play ELC services, you won’t need to do anything as Services Australia will automatically switch over.

What’s Changing?

1. The removal of the annual cap

The annual cap on the childcare subsidy of $10,655 was officially removed on the 10th of December 2021. If you have stopped receiving CCS prior to January 2022, Services Australia will be backdating the total amount for the sessions of care affected.

2. Families with more than one child in care may be able to apply for a higher subsidy

From March 7th 2022, families will be able to apply for a higher subsidy for the additional child(ren) in care. The standard rate will still apply to the first child, but families will receive a 30% higher subsidy with a maximum of 95% of childcare fees subsidised for additional children. There are some requirements that need to be met to be eligible for the higher subsidy:

  • Both children need to be under five years of age
  • Household earns less than $354,305

If you are already signed up to CCS, you will not need to do anything, Services Australia will automatically assess which child gets the higher subsidy and if you are eligible. Generally, it will be the eldest child that will receive the standard subsidy, and younger children will receive the higher subsidy.

3. No intention to use childcare

Services Australia will also be reviewing eligibility for the childcare subsidy and considering if there is an intention for families to attend childcare. This will not affect any of our families until your child enters school. In which case Services Australia will re-evaluate your subsidy payments.

Why are these changes a good thing for our families?

At Child’s Play ELC, we welcome these changes as it assists our families in a number of ways. One of the most significant points made when these changes were announced is that it opens the door for 90,000 women to return to work following the pandemic and it can also help working families save money.

  • Parents can go back to work

Working families and, more specifically, women will be able to comfortably increase participation in the workforce following these changes. In a lot of the economic research, women have been hit the hardest by stay at home orders throughout the pandemic. By reducing the cost of childcare, there are fewer barriers as to why families cannot send their children to childcare. It also provides women with greater opportunities to work full time or choose to work late to better support their families. At Child’s Play, we are community-minded and want the best for our families and our children, which is why we work with our families to ensure a smooth transition when the time comes to go back to work or to increase workdays.

  • Save up to $2200 a year

With the new subsidy in place, families will be spending less on childcare fees but still receiving high-quality childcare. This is great for our parents as they are able to put that additional money towards other family needs, such as a weekend away or a day trip to the zoo.

  • More funding for childcare

This subsidy provides childcare centres like Child’s Play with the ability to provide greater resources to your children and employ more staff. Over the years, it has allowed us to reach an Exceeding Standard in childcare ratings and continue to be one of the highest-rated childcare centres in Victoria.