What is CCS Withholding?
The Child Care Subsidy (CCS) is a government initiative designed to help make Out of School Hours Care (OSHC) more accessible for families. Depending on your circumstances, CCS can cover up to 90% of your OSHC costs.
Both CABOOSH and St Clair OOSH are approved services for CCS under Greater West Childcare, meaning families using these centres are eligible for the subsidy, helping reduce out-of-pocket costs. This makes quality care more accessible, easing the financial burden for many parents.
What is CCS (Child Care Subsidy)?
The Child Care Subsidy helps families reduce out-of-pocket OSHC costs, making it more accessible for those who need it most. Depending on your circumstances, CCS can cover up to 90% of OSHC fees, helping ease the financial load. Eligibility is based on factors like family income, work or study commitments, and the type of care needed.
Families receiving income support payments or the Family Tax Benefit may also qualify for additional assistance. If you have more than one child in care, you may be eligible for a higher subsidy rate. To qualify, families must meet specific requirements stated on the Services Australia website, including caring for younger children under 13 and using an approved Out of School Hours Care service.
CCS is paid directly to the approved childcare service, and is used by the service to off-set fees to the parent, prior to the parent being issued with a statement for payment.
Understanding CCS Withholding
CCS Withholding is a portion of the CCS payment that Centrelink holds back before making payment of the subsidy to the approved service (like CABOOSH or St Clair OOSH). This is done to ensure the correct amount of the subsidy is applied to your childcare fees, based on your family’s eligibility. It helps ensure that families receive the right subsidy amount, reducing the change of overpayment that could result in debt at the end of the financial year.
The amount of CCS Withholding by default is 5% and is controlled by Centrelink (not the individual childcare service). Centrelink may change individual withholding amounts in certain circumstances, and it is possible for parents to request a change to their withholding % to suit their individual needs.
How Does CCS Withholding Affect Fees?
CCS withholding affects what parents pay out-of-pocket by reducing the amount of subsidy received by the OSHC provider to offset the parent’s payable fees. For example, if a family at CABOOSH or St Clair OOSH is eligible for a 90% CCS, Centrelink pays 5% less than this subsidy and withholds the additional 5% until the end of financial year when CCS payments are balanced.
Why is CCS Withholding Important?
CCS withholding helps make sure the subsidy payments are processed smoothly. It doesn’t affect the overall amount of subsidy you're entitled to—it's just a small percentage withheld to ensure everything's calculated correctly. The amount withheld can vary depending on your specific Child Care Subsidy entitlement, but it won’t impact the final subsidy amount you’ll receive. It's just part of the system to keep everything in check and ensure families only pay what they should.
How to Manage CCS Withholding
To keep track of CCS withholding and any reimbursements, it’s important to regularly check your Child Care Subsidy payments through your Centrelink online account, and review the details on your childcare fee statement provided by your child’s service. This helps ensure that everything lines up correctly with the amount you're expecting. Keep an eye out for any discrepancies and don’t hesitate to ask your OSHC provider or Centrelink directly if you notice anything unusual. By staying organised and tracking these payments, you’ll make sure you’re getting the right amount at the right time.
CCS withholding is a key part of the overall Child Care Subsidy system delivered by Centrelink, designed to make Out of School Hours Care more accessible for families. The withholding ensures your subsidy is applied correctly and doesn't affect your overall entitlement. If you want to learn more about how CCS works or ensure you’re getting the most out of your subsidy, feel free to reach out to Greater West Childcare. We're here to help!