Child Care Subsidy explained

Each year, the Australian Federal Government adjusts the Child Care Subsidy (CCS) hourly rate caps and family income thresholds based on the Consumer Price Index (CPI).

The maximum hourly rate and family income thresholds for the 2024/2025 financial year are outlined below:

  • If your family has a child in an early education and childcare service, the maximum CCS hourly rate for Centre Based Care is $14.29
  • If your family has a child in an outside school hours care service (OSHC), the maximum CCS hourly rate for school aged children is $12.51
  • If your family earns under $83,280 per year, your CCS percentage will be 90%
  • Your CCS percentage rates will decrease by 1% for every additional $5,000 earned over $83,280 per annum
  • If your family earns $533,280 or above per year, your CCS percentage will be 0%
  • Families with more than one child aged 5 or under, with income below $365,611 will get a higher rate of CCS for their second and younger children
  • First Nations families can get at least 36 hours of subsidised care per fortnight. Families can get more subsidised hours based on their circumstances.
  • Families with Preschool/Kindergarten aged children attending an approved subsidised program in the year before they commence school, can get at least 36 hours of subsidised care per fortnight. Families can get more subsidised hours based on their circumstances.

The Child Care Subsidy: Explained by our Early Learning Services team

Am I eligible?

You may be eligible for the Child Care Subsidy if you meet a number of factors. Check out our video for the full explainer.

Calculate your Child Care Subsidy

Find out how much of the Government Child Care Subsidy you're entitled to with our handy calculator.

Calculate my subsidy

Types of approved activity, Government activity test

From 8 July 2024, here is how much you can expect to get covered, on average

Work out your estimated out-of-pocket costs by combined annual income

*Based on eldest or only child. Families with more than one child may be eligible for a higher subsidy for their second child and younger children.
*The $14.29 hourly cap applied above is the 2024/25  hourly CCS rate and is subject to change annually to align with CPI increases.

To read more about combined annual income and the annual cap, click here for further information from education.gov.au.

Preschool Exemption Program

If your child is currently enrolled in our Government Approved Preschool or Kindergarten programs, this comes with a CCS exemption that is available for preschool-aged children, whose subsidy is less than 24 hours per fortnight. You can access 36 hours of subsidised care per fortnight if you:

  • Would usually be entitled to less than 36 hours of subsidised child care per fortnight because you do not meet the activity test; and
  • Have a preschool-aged child attending an early education program at a centre-based day care service.

A preschool-aged child is one who is in the year before primary school e.g. if a child is starting school in February 2026, the child is deemed preschool-aged from February 2025.

The Additional Child Care Subsidy

The Additional Child Care Subsidy is a top-up payment in addition to the Child Care Subsidy which will provide targeted additional fee assistance to families and children who need extra support.

The Additional Child Care Subsidy has four elements:

  • Child wellbeing
  • Grandparents
  • Temporary financial hardship
  • Transition to work.

Find out more about the Additional Child Care Subsidy here.

Child care subsidy made easy!

We’ve included the latest information and valuable resources for you in this free eBook to assist in your CCS journey.

Download eBook

Still need help?

Rest assured that our team is always available to assist. Feel free to contact us anytime to chat more, and we look forward to welcoming you in centre.

Disclaimer

The subsidy you will receive and any applicable cap will depend upon your own personal circumstances and is subject to your combined family income, hours of recognised activity and child care details. Even if you are currently receiving the Child Care Benefit or Child Care Rebate, you will need to update your details through your Centrelink account on MyGov. For more information visit The Department of Education’s website or get help making a claim online via the Centrelink website..

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