Outline of New CCS

Here is a brief overview of the Child Care Subsidy (CCS) that is to be released from July 2018:

  • Families earning less than $65,710 per annum will have 85% of a maximum hourly rate of $11.55 subsidised. That is, if the hourly fee is less than $11.55, then 85% of the fee will be subsidised by the government. For any fee greater than $11.55, the government will subsidise $9.8175 (85% of $11.55).

 

  • The maximum hourly rate to be subsidised is set by the government and will be the following for children below school age:
    • LDC: $11.55
    • FDC: $10.7
    • OSHC: $11.55

 

  • The maximum hourly rate to be subsidised is set by the government and will be the following for school-aged children:
    • LDC: $10.10
    • FDC: $10.70
    • OSHC: $10.10

 

  • When the family income is greater than $65,710 per annum their subsidies will decrease to 20% of the maximum hourly rate when earning $340,000 per annum.
  • Family incomes greater than $185,710 will have their annual subsidy capped at $10,000/child.
  • CCS entitlements will be granted following a three step activity test:
  1. 8-16 hours per fortnight, maximum 24 hours of subsidy per fortnight; 
  2. 16-48 hours per fortnight, maximum 36 hours of subsidy per fortnight;
  3.  More than 48 hours per fortnight, maximum 100 hours of subsidy per fortnight.
  • Additional subsidies to CSS will be afforded under the Child Care Safety Net.

 

Services will have new requirements and obligations:

  • The new CCS will remove the requirement for hours of operation per day or days per week.
  • Instead, services will be required to operate for a minimum 48 weeks per year OR 7 weeks per year if an outside school hours care service.
  • There will be new obligations on services to comply with Family Assistance Law which includes but isn't limited to:
    • The Department of Education and Training will have the ability to reassess a service approval at any time.
    • Providers will be required to report their educators 'Working with Children Check' details.
    • There will be a 28-day limit for backdating children’s attendance records.

 

There will be a new Integrated Child Care IT System that will change the way services and families can communicate with Centrelink. Some of the key changes are:

Families Portal

  • For families to interact with Government via CCITS.
  • To access public info on CCS and their eligibility for assistance.
  • To find provider locations as well as vacancy information.

Provider Access Point (PAP)

  • For services that want to access information or apply for approval under Family Assistance Law and engage with Centrelink directly without a 3rd party Child Care Management System software.
  • The PAP will not provide the additional functions of a 2rd party CCMS software.
  • The PAP is likely to be used by only a small number of child care operators.

Provider Digital Access (PRODA)

  • PRODA is an online digital authentication system used to securely access online services.
  • To access services using PRODA services need to register as an individual to get your own account.
  • Services can register for PRODA by visiting: https://proda.humanservices.gov.au

Further information can be found on ourxplor.com/child-care-subsidy

 

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