The Child Care Subsidy (CCS):

What You Need to Know

The Child Care Subsidy (CCS) is a government subsidy that offers different levels of financial assistance to help cover the cost of childcare for Australian families. How much you receive depends on your individual circumstances. There is more information below about the CCS, how much you should receive and how to apply.

How much CCS should I receive?

To work out how much CCS you’re eligible for we’ll look at all the following:

your family’s income
the hourly rate cap based on the type of approved childcare you use and your child’s age
the hours of activity you and your partner do.

The amount of subsidised childcare you can access per fortnight applies to each child.

You can use the Payment and Service Finder from Services Australia to estimate how much Child Care Subsidy (CCS) you may get.

Your Combined Family Income

Your family’s combined income will help determine the CCS percentage you’re entitled to. Remember, you will need to contact Centrelink when your combined income increases or decreases – this can be done at any time through your Centrelink online account through myGov or the Express Plus Centrelink mobile app.

Your family income	Child Care Subsidy percentage
$0 to $80,000	90%
More than $80,000 to below $530,000	Between 90% and 0% The percentage goes down by 1% for every $5,000 of income your family earns above $80,000
$530,000 or more	0%

* Standard CCS rates from 10 July 2023

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

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.

Your Level of Activity

CCS is linked to how much a family contributes to the Australian economy through activity – both paid and unpaid. This activity level is calculated from the parent with the lowest number of hours of activity per fortnight.

Activity level each fortnight	Hours of subsidised care each fortnight
Less than 8 hours	0 hours if you earn above $80,000 24 hours if you earn $80,000 or below
More than 8 to 16 hours	36 hours
More than 16 to 48 hours	72 hours
More than 48 hours	100 hours

What counts as an activity?

Paid work (including all-time between drop off at the centre and pick up at centre, commute time, lunch breaks etc)
All types of work across all jobs/employers
Authorised leave (e.g., maternity leave, long service leave, annual leave)
Unpaid leave of up to 6 months
Unpaid work in a family business
Time spent setting up a business that has not yet started to operate
Training and study (including additional study outside scheduled hours, holiday and non-class periods)
Work experience/internships (paid or unpaid)
Volunteering
Looking for work (including contacting employers, preparing resumes and letters of application, preparing for and attending job interviews etc)

Exemptions to the ‘Activity Test’

There are some exemptions to the activity test. To discuss your individual circumstances, please contact us here.

Universal Access: 4 -year-old Pre-school programs. If a child attends an early educational program at a childcare centre in the year that is 2 years before Grade 1 of school (i.e., a preschool or kindergarten program), they are entitled to up to 36 hours of care per fortnight, irrespective of their parent’s activity
Low-Income Families. If a family earns less than $70,015 with no activity, then they are entitled to 24 hours per fortnight.
Individuals on Income Support will automatically qualify for 36 hours of activity per fortnight, plus any other recognised activity (e.g., volunteering, studying etc)
Individuals receiving Carer’s Allowance will automatically qualify for the higher of:
- 72 hours of activity per fortnight, or
- The actual time spent caring plus any other form of recognised activity

Your childcare provider hourly rate

The third factor taken into consideration when calculating your CCS is the hourly rate charged by your childcare provider. CCS is calculated according to whichever is the lowest:

The centre’s actual hourly fee (which is the daily fee’ divided by hours of operation), or
The Hourly Rate Cap of $13.73 per hour.

Your number of children in care

If your family has more than one child aged 5 or younger in care, you may get a higher Child Care Subsidy (CCS) for one or more of your children.

CCS rates for higher rate children from 10 July 2023

Your family income	Child Care Subsidy percentage
$0 to $138,188	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

How can I get the most out of the CCS?

To discuss your individual circumstances and how they relate to your CCS entitlements, please contact us here. They will be able to assist you with any questions or concerns you may have.

Things to consider:

Have your circumstances changed? For example, if your income level or contact information has changed, you should update your details with Centrelink as soon as possible. This can be done through your Centrelink online account through myGov or the Express Plus Centrelink mobile app.
New to childcare? You should put in a claim for CCS as soon as possible. Claims for CCS can only be backdated for up to 28 days from the day the claim is lodged, so the sooner you act, the better it will be for your back pocket.

Frequently Asked Questions about the Child Care Subsidy

What determines my level of Child Care Subsidy?

The subsidy you’re entitled to will depend on your individual circumstances. Your CCS is calculated using three components:

Your combined family income
Your level of ‘activity’
Your childcare provider’s hourly rate

You can use the Payment and Service Finder from Services Australia Website to estimate how much Child Care Subsidy (CCS) you may get.

How much does Centrelink pay per child?

Again, this depends on your circumstances, including your family income, your level of activity and your chosen childcare provider’s hourly rate. To discuss your individual circumstances and how they relate to your CCS entitlements, please contact us here. We will be able to assist you with any questions or concerns you may have.

Why does the Government provide subsidies for Childcare?

The Government provides financial assistance to families to help cover the cost of childcare. This eases out of pocket costs depending on how much a family earns and allows parents to return to work and for children to be exposed to high-quality early childhood care and education, which has many proven benefits for child development.

The Child Care Subsidy provides higher levels of financial support to the families who earn the least, to make the process of returning to work less financially difficult. More importantly, this initiative gives your child an opportunity to take advantage of the benefits of an early childhood education. Family life is busy – in between juggling work and family life, there’s not a lot of time left to catch up on legislative changes, so we’ve outlined them for you.

The system is income and ‘activity-based’, giving families access to either 36, 72 or 100 hours of subsidised care per fortnight, based on the hours of combined work, training or study undertaken.

How do I claim the CCS?

The easiest way to decide how to make a claim is by visiting the Services Australia website.

Am I eligible for the 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 childcare service
be responsible for paying the childcare fees
meet residency and immunisation requirements.

How much am I entitled to claim through the CCS?

This will depend on your individual circumstances. You can estimate your estimated Child Care Subsidy (CCS) you may get here.