If you are a parent who is living in Australia, no one needs to tell you how expensive child care can be. Because of the necessity of this service, however, the Australian government offers citizens a Child Care Subsidy to help curb some of the expenses.
In 2021, the CCS program underwent some changes that resulted in additional funding going toward millions of families across the country. If you are one of the individuals who receive CCS or who may qualify to receive it, you may wonder how exactly the program works. For most individuals, the biggest question is in regards to how the Australian government calculates the CCS.
How Many Young Children Do You Have?
When you use a CCS calculator, the first thing about your situation that the government will consider is how many young children you have. The keyword here is “young” because, in Australia, children must be 13 or under to qualify for CCS coverage. An exception to this requirement is for youth between the ages of 14-18 who have disabilities.
Due to the 2021 changes for CCS, millions of low and middle-income families will now receive additional funding if they have more than two children. As such, families with more children can generally expect to receive a higher CCS amount if they have a low to moderate-income. For parents with multiple children, the additional subsidies can make raising a family much more feasible.
What Is Your Combined Family Income?
In addition to the number of children you have, another key determinant in how much CCS your family can receive is your combined family income. For example, families that earn under $70,000 a year can expect to qualify for up to an 85% CCS. On the other hand, it is unlikely that households that earn more than $350,000 will receive any CCS funding.
Wherever your family’s income falls will determine what you can expect for your CCS funding. For a more middle-income example, consider a family that earns between $70,000 and $175,000 a year. These households can qualify for between an 85% and 50% CCS, with the percentage decreasing by 1% for every $3,000 of income.
How Much Do You Pay for Child Care?
If you have never been a keeper of receipts, now is the time to start. Ideally, you should try to stay familiar with how much your family spends on child care at all times. Because costs can quickly add up, a careful organization of your child care bills can help you most efficiently recover all of the expenses that the law entitles you to.
When calculating how much you pay for child care, the CCS typically provides the most assistance to families who pay a significant amount in comparison to their combined monthly income. In these scenarios, many families receive up to an 85% CCS. However, your individual case will depend on your unique circumstances.
What Is Your Living Situation?
Finally, the government will also consider the type of care your child is attending as well as the location where you work and reside. What does your household look like? Are you a single parent or are you married? Additionally, Australian authorities want to know how much time you spend doing work-related activities every fortnight. What does your family time versus work schedule look like?
Although these factors may seem a little personal, they all play a critical role in helping authorities put together an accurate picture of your family’s financial situation. By adding up your time and expenses, the Australian government formulates a CCS payment that fits your family’s needs and budget.
At the end of the day, there are multiple factors that go into Australia’s CCS calculation. This article can help you understand what they are.