CCS and FTB Together: How They Interact When Your Income Changes (2025–26)
If you receive Child Care Subsidy (CCS), you might also receive Family Tax Benefit (FTB).
They are different payments. They follow different rules. But they can both change when your income changes.
If you're returning to work, increasing hours, or getting a pay rise, it's important to understand how both payments may move together.
First: They are separate payments
CCS and FTB are administered separately by Services Australia.
You can receive:
- CCS only
- FTB only
- Both
- Neither
Receiving one does not automatically make you eligible for the other.
They are assessed separately and reconciled separately at tax time.
What does CCS cover?
CCS helps reduce your child care fees.
It's based on:
- Your adjusted taxable income (ATI)
- Your activity level (work, study or volunteering hours)
- The hourly rate cap
- The number and age of children in approved care
As your family ATI increases, your CCS percentage gradually reduces.
CCS is paid directly to your child care provider, and final entitlement is confirmed after income is finalised through your tax return.
What does FTB cover?
Family Tax Benefit helps with the general costs of raising children.
It is also assessed using adjusted taxable income (ATI) and has its own income thresholds and taper rates.
There are two parts.
FTB Part A
Paid per dependent child. It reduces as family income increases and phases out at higher income levels.
The 2025-26 FTB Part A supplement is approximately $938.05 per child. Note that supplements and payment rates are subject to annual indexation each July; check Services Australia for confirmed 2026-27 rates.
For separated parents, child support received may reduce FTB Part A under the maintenance income test.
FTB Part B
Usually paid to single parents or single-income couples with a younger child.
It depends on:
- The age of your youngest child
- The secondary earner's income (for couples)
- Your family ATI
The 2025-26 FTB Part B supplement is approximately $459.90 per family. Like Part A, this is indexed annually in July.
FTB is generally paid fortnightly, but final entitlement is confirmed after reconciliation once income is finalised.
Estimating Your FTB
Because FTB has complex taper rates and supplements, many families find it hard to estimate their actual take-home pay. You can use our standalone FTB calculator to model both Part A and Part B fortnightly and annual amounts based on your income and family situation.
Calculate your FTB estimate here.
So how do CCS and FTB interact?
They don't directly affect each other.
But they are both income-tested.
If your adjusted taxable income increases:
- Your CCS percentage may reduce
- Your FTB Part A may reduce
- Your FTB Part B may reduce or stop
Each payment uses different thresholds and taper rates, so they don't reduce in exactly the same way or at the same income levels.
In some income ranges, both payments may reduce at the same time.
That's when families can feel like a pay rise doesn't go as far as expected.
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Why this matters when going back to work
Common scenarios where both payments can change:
- Increasing from 3 days to 4 days
- Returning to work after parental leave
- A pay rise or bonus
- A partner increasing their hours
- Salary packaging or reportable fringe benefits
Many families focus only on child care fees.
But the bigger question is:
After tax, childcare, CCS and FTB — what does our household actually keep?
To answer that properly, you need to look at both payments together.
What else affects FTB?
FTB also depends on:
- The number of dependent children (not just those in child care)
- The age of each child
- Care percentage arrangements
- Maintenance (child support) income
- Immunisation requirements
- Secondary earner income (for Part B)
Because of these factors, FTB can't be estimated accurately without looking at your full family situation.
What happens at tax time?
Both CCS and FTB are based on estimated income during the year.
After the financial year ends:
- CCS is reconciled
- FTB is reconciled
- Final entitlement is determined once income is confirmed through your lodged tax return
If your income estimate was too low, you may need to repay some amount. If it was too high, you may receive a top-up.
They are assessed separately.
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The key takeaway
CCS reduces your child care bill. FTB supports your household income.
They are separate — but they can both change when your income changes.
Looking at only one payment may not give you the full picture.
Want to see how they work together for your family?
If you want to:
- Estimate your FTB (Part A and Part B)
- See how income changes affect both CCS and FTB
- Compare different work scenarios
- Understand your total family payments
You can use the FTB calculator inside the CCSChecker Premium dashboard.
It uses the same income figures from your CCS scenario and shows how both payments move together.