CHILDCARE

Child Care Subsidy

Guide to the Government Child Care Subsidy

In Australia, the child care subsidy (CCS) is a government program designed to assist families with the cost of approved child care. It replaced the previous Child Care Benefit and Child Care Rebate schemes in July 2018.

The Child Care Subsidy (CCS) is generally paid to childcare providers who pass it on to families as a fee reduction. There is always a difference between the fees charged by any childcare provider and the CCS, called “the Gap fee” This is also known as the out-of-pocket cost.

Families must make a co-contribution by paying the gap fee. Providers must report fee information to the government. Gap fee payments must be paid electronically.

How much can you get?

The amount of childcare subsidy you can get depends on your circumstances.

‍

To work out how much CCS you’re eligible for, the government will look at all of the following:

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 activity you and your partner do
the number of children in your care.

The Child Care Subsidy percentage you’re entitled to depends on your family’s combined income.

‍

Your CCS percentage applies to either your hourly fee or the relevant hourly rate cap, whichever is lower.

Standard CCS Rates (from 8 July 2024)

Your Family Income	Child Care Subsidy Percentage
$0 to $83,280	90%
More than $83,280 to below $533,280	Between 90% and 0%. The percentage goes down by 1% for every $5,000 of income your family earns above $83,280
$533,280 or more	0%

If you have more than one child aged 5 or younger, you may get a higher rate for one or more of your children.

CCS Rates for Higher Rate Children

Your Family Income	Child Care Subsidy Percentage
$0 to $138,118	95%
More than $138,118 to below $183,118	Between 95% and 80%. The percentage goes down by 1% for every $3,000 of income your family earns
$183,118 to below $262,408	80%
$262,408 to below $352,408	Between 80% and 50%. The percentage goes down by 1% for every $3,000 of income your family earns
$352,408, to below $362,408	50%
$362,408 or more	Higher CCS rates no longer apply, all children in the family will get the standard CCS rate

You can still claim CCS even if your family income estimate is $530,000 or more. If you actually earn less than this, we’ll pay you the subsidy you’re entitled to. We’ll do this when we balance your payments at the end of the financial year.

Child Care Subsidy Calculator

Use the Child Care Subsidy Calculator tool to calculate the CCS percentage you are eligible for.

Child Care Subsidy Calculator

Who can receive CCS?

To get Child Care Subsidy (CCS) you must:

care for a child 13 or younger who’s not attending secondary school, unless an exemption applies
use an approved child care service
be responsible for paying the child care fees
meet residency and immunisation requirements.
do a recognised activity

Recognised activity includes paid work, paid and unpaid leave and approved study. For more information, visit Services Australia -Recognised activities

‍

Child Care Subsidy Recognised Activities