Overtime, bonuses and commission all count as income for Child Care Subsidy (CCS). Whether they change your subsidy rate depends on where your family income sits for the year, and the extra hours are a separate question with their own rule.
This guide covers both sides — the income side, which sets your rate, and the hours side, which sets how many hours of care are subsidised. Every rule here is the one our free CCS calculator uses, checked against the DSS Family Assistance Guide and Services Australia.
Overtime and bonuses are part of family income
CCS is income-tested on adjusted taxable income (ATI) for the financial year. For a couple, it is both partners' ATI added together. ATI starts with taxable income, and overtime, bonuses, commission and shift penalties are all paid as salary and wages, so they are in it.
That also means a bonus salary sacrificed into super still counts — see does salary sacrifice affect CCS? for why.
Whether it changes your rate
The standard CCS rate follows a set scale based on family ATI:
| Family adjusted taxable income (2026-27) | Standard CCS rate |
|---|---|
| Up to $88,520 | 90% |
| Above $88,520 | Falls by one percentage point for every $5,000 |
| $538,520 and above | Zero |
So there are three situations:
- Family ATI stays at or below $88,520 including the extra. The standard rate does not change.
- Family ATI is in the tapering range. Each extra $5,000 of overtime or bonus lowers the standard rate by one percentage point. Smaller amounts lower it proportionally, so every extra dollar in this range has some effect.
- The extra takes family ATI to $538,520 or more. The standard rate is zero for that year.
Younger children aged 5 or under can attract a higher rate that has its own income bands — higher CCS for a second child covers those.
Timing: the year matters, not the fortnight
CCS is paid fortnightly, but the income test is annual. Centrelink pays during the year on your estimate of family ATI, then balances it against your actual ATI once both tax returns are lodged. A bonus paid in one fortnight is spread across the whole year's test, not applied to that fortnight alone.
The line that matters is the end of the financial year. A bonus paid on 30 June counts in that year; one paid on 1 July counts in the next.
Keeping the estimate in step
Centrelink holds back 5% of each CCS payment to cover small differences between the estimate and the actual figure. That cushion is a share of your subsidy, not of your income, so it absorbs less than it sounds — about $22,500 of income error at the top rate, and about $5,000 at a 20% rate (both are amounts of income error, not steps of the taper). Beyond that, a low estimate turns into an amount owed after tax time.
Worth checking: if regular overtime, a pay rise or a bonus is coming this year, does the family income estimate Centrelink has for you include it? You can update it through myGov. Our guide on what income to tell Centrelink covers variable pay in more detail, and CCS reconciliation explained covers what happens when the numbers differ.
The hours side: the activity test
Extra hours at work are a separate question from extra income. The activity test sets how many hours of care are subsidised each fortnight, and paid work hours count as recognised participation.
- Every eligible family can get at least 72 subsidised hours a fortnight under the 3 Day Guarantee.
- The subsidised hours rise to 100 a fortnight when you do more than 48 hours of recognised participation a fortnight. For a couple, both partners need to meet that, or have an exemption.
Our CCS activity test guide covers what counts and how to report your hours.
What to read next
- Does salary sacrifice affect CCS? — why sacrificing into super does not lower CCS income.
- What family income should I tell Centrelink for CCS? — building the estimate, including variable pay.
- How much Child Care Subsidy will I get? — the whole calculation, start to finish.