It's important for families to stay informed about any updates or changes to government funding for childcare. Being aware of new regulations, subsidy adjustments, and assessment processes can help you make the most of the support available for your child's early education. At Teddy Bear Cottage, we are committed to keeping our families informed. We regularly share updates about government funding and subsidies to ensure you have the knowledge needed to navigate changes confidently. Our centre also provides helpful resources and ideas to support your child’s learning journey at home, making it easier to stay engaged every step of the way.

Helping You Access Affordable Child Care At Teddy Bear Cottage, we understand the importance of making quality early education accessible for all families. The Child Care Subsidy (CCS) is a government initiative that helps reduce the cost of approved childcare based on your family’s circumstances. How is CCS Calculated? The amount of subsidy you receive is based on: Your family’s combined income The number of hours you and your partner engage in recognised activities (work, study, volunteering, etc.) The type of childcare service you use (e.g., long day care) Subsidy Rates Based on Income Combined Family Income Subsidy % of Child Care Fees (up to hourly rate cap) $0 to $80,000 90% $80,001 to under $530,000 Gradually reduces from 90% to 0%* $530,000 or more 0% *For every $5,000 earned over $80,000, the subsidy reduces by 1%. *Figures current as of 10 July 2023. How the Activity Test Works The number of subsidised hours per fortnight depends on how many hours both parents (if applicable) spend in recognised activities: Activity per Fortnight Subsidised Hours Less than 8 hours 0 hrs (if income > $80K), 24 hrs (if income ≤ $80K) | | More than 8 to 16 hours | 36 hours | | More than 16 to 48 hours | 72 hours | | More than 48 hours | 100 hours | 💡 Families with casual or irregular hours can estimate activity based on the highest fortnightly hours expected within a 3-month period. 🎓 Families with children in the year before starting school are eligible for 36 hours of care, regardless of activity level. Estimate Your Subsidy Want to know how much CCS you may be eligible for? Click the link below to use the official tool from Services Australia: 👉 Estimate your Child Care Subsidy https://www.servicesaustralia.gov.au/payment-and-service-finder

Government funding for childcare provides significant support to Australian families, making early education more accessible and affordable. Through initiatives like the Child Care Subsidy (CCS), families can reduce the cost of care, ensuring that children can benefit from high-quality early learning environments like Teddy Bear Cottage. One of the primary benefits is the ability for both parents to return to work, study, or training with confidence, knowing their child is in a safe, nurturing, and professionally run early childhood setting. This peace of mind is especially valuable to new parents navigating the transition back to the workforce. Government-funded childcare also creates financial stability during the important early years of a child’s life. With reduced out-of-pocket costs, families are better positioned to manage household expenses and plan for the future. Beyond financial relief, access to subsidised childcare supports parental wellbeing—particularly for mothers—by encouraging a return to social networks, careers, and community life. This connection plays a vital role in maintaining positive postnatal mental health and supporting a healthy family dynamic. At Teddy Bear Cottage, we believe every child deserves access to quality early learning, and every family deserves the support to thrive.

The Child Care Subsidy is paid directly to childcare providers (like Teddy Bear Cottage) by the Australian Government. This means your fees are automatically reduced, and you only pay the gap—the difference between the subsidy amount and the full fee. Key Points for Families: The subsidy is applied in real time to reduce your out-of-pocket fees. Families cannot opt to receive the subsidy as a lump sum at the end of the financial year. You must submit a claim for CCS before or when your child starts care to ensure timely payments.

After the end-of-year reconciliation process, any CCS still owed will be paid directly to families as a lump sum. If a family has received too much CCS, they may be required to repay the difference. To avoid delays or overpayments, it’s important to keep your family income estimate and activity details up to date with Services Australia.

Families become ineligible for the Child Care Subsidy if their combined annual income reaches $530,000 or more. At this income level, no CCS will be paid. However, if you’re unsure whether your family’s income will exceed the threshold, it is still recommended to submit a claim for CCS. This keeps your eligibility active throughout the year. If your actual income at the end of the financial year is below $530,000, you may still be entitled to a back payment of the subsidy after the annual reconciliation process. 💡 Tip: To avoid missing out on support, always keep your income estimate updated with Services Australia https://www.servicesaustralia.gov.au/child-care-subsidy and lodge your claim even if your income is expected to be close to the limit.

Child Care Subsidy withholding is a system designed to help families avoid overpayments (and resulting debts) when their circumstances change throughout the year — such as income, work hours, or study activity. How It Works By default, 5% of your CCS is withheld from each payment made to your childcare provider. This withheld amount acts as a buffer in case your actual subsidy entitlement is lower than estimated. You can change your withholding rate (increase or decrease it) twice a year via your Centrelink online account through myGov. Why Withholding Matters If your income is underestimated, you may receive too much subsidy throughout the year and owe money to the government at tax time. The withheld amount helps reduce that potential debt. If your income is overestimated, and you receive less CCS than you’re entitled to, the government will reimburse the difference, including the withheld amount, at the end of the financial year. ✅ Tip: Keep your income estimate accurate and review it regularly to avoid surprise debts or missed payments. For more information or to manage your withholding, visit Services Australia – Child Care Subsidy. https://www.servicesaustralia.gov.au/child-care-subsidy

The Additional Child Care Subsidy (ACCS) is a top-up payment that provides extra financial assistance on top of the standard Child Care Subsidy (CCS). It is designed to support families and children who need extra help accessing childcare. This targeted support helps ensure that all children, regardless of their circumstances, have the opportunity to benefit from safe, high-quality early learning environments like Teddy Bear Cottage. There are four types of Additional Child Care Subsidy: Child Wellbeing For children who are at risk of serious abuse or neglect. This subsidy ensures vulnerable children can access childcare in a safe and supportive environment. Grandparents For grandparents who are the primary carers of their grandchildren and are receiving income support. This helps ease the financial pressure of caregiving. Temporary Financial Hardship For families experiencing short-term financial difficulties due to unexpected events (e.g., loss of income, natural disasters, medical emergencies). Transition to Work For parents who are transitioning into the workforce from income support. It assists with childcare costs while undertaking study, training, or starting a job. How to Apply To access the Additional Child Care Subsidy, families must apply through Centrelink via their myGov account or contact Services Australia directly. 🔗 Learn more or apply via Services Australia – Additional Child Care Subsidy https://www.servicesaustralia.gov.au/additional-child-care-subsidy Where can I get further information on the child care package? Visit the Department of Education and Training Child Care Package website at gov.au/early-childhood Visit the Department of Human Services Child Care Subsidy gov.au/childcaresubsidy