Australian CCS Cap Removal

A Welcome Change for Families: The Australian Government Has Removed The CCS Cap

In a welcome announcement after another challenging year for families, the Australian Government has announced that from 10 December 2021, the annual cap for families who receive the Child Care Subsidy (CCS) will no longer apply.

Up until 08 December, families earning more than $190,015 had an annual subsidy cap of $10,655 per child each financial year. Up to 18,000 families are expected to benefit from this change, with the desired outcome being that thousands of parents—particularly women, who make up the majority of priority carers—will return to the workforce or pick up more hours as a result of more affordable childcare.

“Ensuring access to high-quality early learning education and care is a valuable investment in their futures and our communities,” says Affinity Education CEO Tim Hickey.

“Policies that reduce the cost borne by families ensure that more children will be able to benefit from programs that nurture their social, emotional, physical, and mental development during what is a critical stage of their learning and growth.”

This change comes ahead of an increase to the childcare subsidy, which is set to commence early March 2022 and which will affect families with two or more children in care.

The combined changes are part of a $1.7 billion investment announced in the 2020/21 budget. In total, approximately 250,000 families with two or more children are expected to benefit from the removal of the cap and the increased subsidy. Budget estimates suggest that a family of $110,000 a year with two kids in care, four days a week, will be better off by about $100 each week.

Affinity Education Group looks forward to supporting families as they navigate these changes. Affinity Education remains committed to providing positive learning outcomes for our little learners through 2022 and beyond.

Do you want to make a big difference in little lives while reaching your full potential? Get in touch with our People & Culture team today to discover current opportunities, training opportunities, and how we can help grow your career in early childhood education and care.