Quality care is becoming more accessible, and that’s great news for children

Interest rates. Electricity and gas bills. Insurance. Groceries. The rising cost of living is obvious every time we reach into our pockets to pay a bill. For many families, that means keeping a watchful eye on the budget, and thinking carefully about getting value where you spend your money.

Families will be heartened to know that updates to the Australian Government’s Child Care Subsidy (CCS) will continue to reduce out-of-pocket expenses for many families, making high-quality care more affordable and accessible. And that is great news for young children who get the benefits of participating in quality early childhood programs.

What is the Child Care Subsidy?

The CCS is financial assistance to help the cost of child care, in recognition of the research that shows the quality early childhood care and education greatly improves life outcomes for young children. How much CCS you receive depends on a number of factors, including your family’s income, the age of your child, and the paid and unpaid activities, like your job or volunteer work, your family is involved in.

You can read more about the CCS and how to apply here.

Changes to the Child Care Subsidy – what you need to know

The changes to the CCS from 8 July 2024:

• Families earning $83,280 or less may be able to get a 90% subsidy. This has increased from $80,000 in the year prior. 
• Families earning above $533,280 will not be eligible for CCS; this has increased from $530,000 in the year prior. 
• Families with a combined income estimate below $365,611 can still get a higher rate for one or more of their children – this has increased from $362,408 the year prior. 
• The standard rate of CCS will apply to the eldest child. 
• For a ‘higher rate child’ (which is the younger child / children), families will continue to get a higher rate of CCS. Services Australia will work out the higher rate up to 95% for the second and younger children. If families’ combined income estimate is above $365,611 they will get the standard CCS rate for all their children. The changes to their CCS rate will automatically apply from 8 July 2024. 
• There is a cap on a service provider’s hourly rate which the subsidy can be applied to. From 8 July 2024, this is now $14.29, up from $13.73 per hour. 

To discuss your individual circumstances, please contact our Customer Concierge Team on 1300 001 119.

Time spent in quality early childhood education and care can have a positive impact on a young child’s development. Extensive research shows several benefits:

· Improved academic outcomes: Young children who participate in high-quality education and care programs tend to have better cognitive and academic outcomes, such as better language and literacy skills, and better problem-solving and critical thinking skills

· Better Social-Emotional Development: children develop better social and emotional skills, such as empathy, cooperation, and self-regulation. These skills are important for success in school and in life.

· Families have more opportunities for employment: early childhood programs also enable families to work or attend school while their children are in care. This can lead to increased family income and improved financial stability.

· Improved Health Outcomes: children who participate in early childhood programs can also have better health outcomes, including nutrition and physical activity, lower rates of childhood obesity, and improved access to healthcare.

· Increased School Readiness: early childhood programs can help prepare children for school by providing them with the skills and knowledge they need to succeed. Children who attend high-quality programs are more likely to be ready for school and to succeed academically The benefits grow with increased time in care. A study by the Australian Institute of Family Studies found that children who attended child care for more hours per week had better language and cognitive skills than children who attended for fewer hours per week. These findings suggest that access to quality child care can be particularly beneficial for young children’s development and highlights the importance of using your CCS to maximise your child’s time in care.

What do you need to do?

It’s important to check your income estimate and update your circumstances if your situation has changed. You can do that easily on the Services Australia website. If you are already receiving CCS, any new rate will automatically be applied.

If you are thinking about care, now is the time to apply for your CCS so you know how much you will get, and can then plan how many days of care can fit your budget and requirements. You can use our simple CCS calculator as a starting point, then apply for the CCS via Services Australia. Any changes to your rate after 8 July 2024 will automatically be applied. With that information, talk to our friendly team about an enrolment pattern that suits your family’s needs. You can contact them on 1300 001 119.

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