Important changes to the Childcare Subsidy

Important changes to the Childcare Subsidy

Learning Ladder welcomes the changes to the Childcare Subsidy (CCS) introduced in 2021 and 2022. These important changes will support more Australian families wanting to return to work or take on other responsibilities.

What’s changed?

  1. Higher Child Care Subsidy rates

As of 11 July 2022, CCS rates have been increased, as outlined below.

Combined annual income

New CCS family income thresholds 

Subsidy % 

Up to $72,466 


More than $72,466 to below $177,466 

Decreasing to 50%

Subsidy gradually decreases by 1% for each $3000 of family income. 

$177,466 to below $256,756 


$256,756 to below $346,756 

Decreasing to 20% 

Subsidy gradually decreases by 1% for each $3000 of family income.

$346,756 to below $356,756 


$356,756 or more 



2. The removal of the annual cap

At the end of 2021, the Federal Government removed the annual $10,655 cap on the Childcare Subsidy.

3. A higher subsidy for families with more than one child in care

As of 7 March 2022, eligible families can apply for a higher subsidy for any additional children in care. To be eligible for the higher subsidy:

  • Both children must be under five years of age.
  • Family income must be less than $354,305.

If eligible, you’ll receive a 30% higher subsidy with a maximum of 95% of childcare fees subsidised for additional children. Generally, your eldest child will receive the standard subsidy and younger children will receive the higher subsidy.

How do these changes benefit families?

These changes benefit Australian families in the following ways.

  1. More parents can return to work

Lower childcare costs mean fewer barriers for families looking to access childcare. This will enable more working families, especially women, to increase workforce participation more comfortably than before. It also makes it easier for women to work full time or to work late if they choose or need to.

2.    Lower childcare costs

With the increased CCS rates, most families will be spending less for the same high-quality childcare services. Given the increased cost of living, this takes the pressure off families who can now direct the extra money into their mortgages, grocery shopping and other expenses.

3.    Extra childcare funding

This subsidy enables childcare providers like Learning Ladder to provide your child with more resources and employ more staff and educators. This helps us to achieve our mission to ensure your child receives the best possible education and care experiences to optimise your child’s learning and development.

For more information on how the changes to the CCS affect your family or for any other questions, please contact us today.


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