If you're currently on maternity leave, you might be wondering whether you're eligible to receive the Child Care Subsidy (CCS). The good news is that you can still receive and apply for the CCS while on maternity leave. All you have to do is follow the same claims process as usual to receive the payment.
So, if you're after a bit of a hand navigating the CCS, we've put together this quick guide to help you understand your entitlements and the claims process when you're on maternity leave.
What is the Child Care Subsidy?
The CCS is the largest form of government assistance towards the cost of childcare. Introduced in July 2018, the CCS replaced the Child Care Benefit and Child Care Rebate, delivering simpler, more affordable childcare.
How does the Child Care Subsidy work on maternity leave?
Whether or not you're on maternity leave, the CCS works in much the same way. The CCS is paid by Services Australia directly to the childcare provider. The benefit is then passed onto you by the way of reduced childcare fees. Essentially, you just need to pay the gap between the childcare fees and the amount covered by the CCS.
In order to qualify for the CCS, you must first meet these requirements:
- Care for your child at least 2 nights per fortnight or have 14% care
- Be liable for fees for care provided at an approved child care service, and
- Meet the residence rules.
Your child must also:
- Meet immunisation requirements, and
- Not be attending secondary school unless an exemption applies.
In addition to meeting the eligibility requirements, you'll also need to provide details on your family's circumstances to work out how much assistance you can get. The amount you're eligible for is determined based on the following factors:
- Your family's income
- The hourly rate cap based on the type of approved child care you use and your child's age
- The hours of approved activity you and your partner do, and
- The number of children in your care
While the process for claiming the CCS is the same regardless of whether or not you're on maternity leave, this detail comes into play when disclosing the type of approved activity that you do.
Is maternity leave considered an approved activity?
In short, yes, maternity leave is considered an approved activity. One of the determining factors in whether you're eligible for the CCS and how much you can receive is the hours of approved activity that you and your partner do. Both paid and unpaid maternity leave are considered a work entitlement, and you're entitled to CCS while on maternity or parental leave pay.
But how do you report the number of hours of activity you do if you're currently on maternity leave? The hours of activity are based on the hours you worked immediately before starting maternity leave or your parental leave pay days. So, if you were working full-time before you left you're still considered to be a full-time employee while you're on mat leave.
Although there's no limit to the amount of time you can be on unpaid maternity leave, the paid parental leave scheme expects that you'll be returning to work as part of your employment conditions.
Applying for the Child Care Subsidy on maternity leave
Even if you're on maternity leave, the claims process for the CCS is exactly the same.
Once you feel you've met the eligibility, income, and work requirements, including any Centrelink-paid parental leave entitlements, you can lodge a claim. To claim parental leave pay, you'll first need to make sure you've got a myGov and Centrelink online account set up and linked together.
If you've never claimed a Centrelink payment before or you've forgotten your Centrelink Customer Reference Number (CRN), you'll need to prove your identity online via myGov before beginning the claims process.
Once your accounts are set up and you've proven your identity, you can lodge a CCS claim online via your Centrelink account. Here you'll be asked a series of questions, including your activity level, and you might also be required to provide documents to support your claim. The documents will depend on your individual circumstances, such as proof of your child's birth, so Centrelink will let you know what's needed as part of the process. While you have up to 14 days to submit these documents, your claim can't be processed without them. So, the sooner you lodge these documents the sooner your claim will be processed.
To finalise your claim, you'll also need to confirm your child's enrolment details with Centrelink so the payments can be processed. The childcare provider will submit the enrolment details to Centrelink for you to confirm against the Complying Written Arrangement (CWA).
Once your CCS claim has been finalised, confirmed and processed, you'll be provided with a notice of assessment that details the final outcome of your claim and how much you're entitled to receive.
There's nothing more to it. Simply follow the regular CCS claims application process, and report the number of hours you were working at your job just before you went on maternity leave and eligible parents can submit their claim to enjoy reduced childcare fees.
If you're looking for more information on the CCS or you want to estimate how much you could be eligible to receive, Care for Kids is full of resources to help you on your childcare journey. We can even help you find local childcare to suit your little one.
