Child Care Subsidy confusion

No doubt you will have discovered there still remains some confusion over the mechanisms & final steps to implement the new childcare subsidy package. The finer details of the CWA and changes to third party software (CCMS) still need to be ironed out so we have opted to wait rather than provide you with inaccurate instructions and resource adjustments.


In the interim ensure that you have:

  1. Read the ‘New Child Care Package’ PDF from the Department of Education and Training (download – New Child Care Package)
  2. Ensure staff members are aware of the changes
  3. Communicate with families – keep them informed
  4. Contact your CCMS provider – where are they up to?

NOTE: as soon as we know that all mechanisms and steps have been confirmed we will then update our Enrolment Pack module and all related forms.


In July 2018 the new child care subsidy (CCS) will be implemented, replacing the Child Care Management System (CCMS) in Centre-based Day Care (CBDC) Services, which includes Long Day Care and Occasional Care Services. Outside School Horus Care (OSHC) Services, which includes Before School Care, After School Care and Vacation Care Services. Family Day Care Services (FDC) and In-Home Care (IHC) Services.

The Child Care Subsidy (CCS) will replace Child Care Rebate (CCR) and Child Care Benefit (CCB) and will be paid directly to the Service on behalf of families. Factors that determine a family’s level of Child Care Subsidy include: Combined Family Income, outcome of the family activity test and the service type. The activity test refers to the amount of work, training, study, volunteering or other recognised activity, paid and unpaid leave (parental leave), exceptions, casual/irregular hours of paid work. The activity test will determine the hours of activity families are entitled to.

Families will receive a letter from the Australian Department of Human Services explaining what the changes are and how they can claim the single means-tested Child Care Subsidy (CCS). Once Services receive their new CCS approval number, they can work with their childcare software provider to ensure their software is set up with the new Child Care Subsidy requirements.

The final stage of the Child Care Subsidy Transition will be to create new enrolments for each child who are in care from July 2018. New enrolments are required due to legislative changes to Child Care Subsidy payments. Software providers will be streamlining the enrolment process and can assist with enrolment activity.

There are 2 main types of Arrangements under the Child Care Subsidy legislation.

  • Complaint Written Arrangements (CWA) for eligible families claiming Child Care Subsidy
  • Relevant Arrangements (RA) for families who are not eligible or will not be claiming the Child Care Subsidy.

Compliant Written Arrangements is like the current ‘informal’ enrolment and can be modified to change Child Care Subsidy status at any time. CWAs need to be approved by families via the MyGov website before they are activated. Information required for Complying Written Arrangements (CWA) must contain the following

  • Child Name
  • Child Date of Birth
  • Child CRN
  • Start Date of Enrolment
  • Parent Name
  • Parent Date of Birth
  • Parent CRN
  • Notice Type
  • Enrolment Arrangement
  • Session Time
  • Fee’s per Session
  • Educators
  • Late Submission Reason
  • Signing Party

Moving forward with the Child Care Subsidy, Session Reports must be submitted within 14 days, and can only be amended up to 21 days from the end of the reporting week.