New Child Care Subsidy: Advice for people transitioning to work

If you are on income support and are transitioning to work, you might be eligible for the Additional Child Care Subsidy (ACCS).

This is great news for people who are actively trying to get into work, studying, or setting up their own business.

>> Apply for this subsidy through Centrelink.

To receive the additional subsidy, you need to be receiving an income support payment (e.g. Parenting Payment or Newstart) and meet the following requirements::

  • ACCS Transition to Work activity requirements (involving study, job search, work or training)
  • income requirements
  • Job Plan or Participation Plan requirements.

The activity requirements are stricter for the ACCS than the Child Care Subsidy.

If you are a ParentsNext client, talk to your ParentsNext provider about whether you meet the ACCS requirements based on the activities in your Participation Plan.

What you may receive

You may receive 95% of the actual fee charged by your child care service, up to 95% of the government’s hourly rate cap.

Without the ACCS, the most you could receive is 85%.

The number of hours of subsidised care you are entitled to each fortnight is still determined by the Child Care Subsidy activity test.

(Read our Child Care Support is changing information for details on the rate cap and the activity test.)

There are limits on the length of time you will receive the ACCS. These vary according to the activity that you are undertaking.

For example, if you are studying a Bachelor degree, you may get the ACCS for up to 156 weeks. If you are working (paid or unpaid) or setting up a business, you may receive up to 26 weeks.

To find out more, talk with your ParentsNext case worker or contact Centrelink on 136 150.

> Download the related information sheet