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Child Care Subsidy

The Australian Government provides families with financial assistance to help cover the costs of approved child care – the Child Care Subsidy (CCS). It is is paid directly to providers to reduce the fees you pay.

The amount you get depends on your family’s income, the type of child care you use (it works with Kids Club!), the age of your child and the hours you and your partner work and other activities that improve your skills.

You can claim these subsidies through your Centrelink online account through myGov.

CCS is the main way the Government assists families with their child care fees. Read our article here:  What changes in the new Child Care package.

Child Care Subsidy Frequently Asked Questions

What is CCS based on?

  • CCS is a Single, means‑ and activity tested payment
  • Eligibility is determined by an activity test (both parents must work, study or volunteer at least 8 hours a fortnight)
  • For families earning more than $185,710 an annual subsidy cap of $10,000 per child will apply
  • CCS is paid directly to service providers and passed on to families as a fee reduction

What is the annual subsidy cap?

Families with a household income of less than $186,958 there is no annual Cap.
Families with household incomes more than $186,958 there is an annual Cap $10,190 per annum.

Activity Test

The activity test is determined at family level. In a two-parent family, both parents must meet the activity test and the person with the lower number of hours will determine the relevant step of the activity test.

In a sole parent family, the sole parent must meet the activity test.  There is a new three step activity test.

Why is my CCS less than I expected?

  1. 5% of your eligible CCS is withheld by Centrelink until the end of the financial year.
  2. The maximum amount of CCS you can receive per hour is $11.77

How do hourly rate caps work?

If your service charges a daily fee, the hourly rate will be determined by dividing the daily fee by the hours the service operates. The hourly rate cap is $11.77 per hour

Example of calculating the hourly fee for a daily session rate

Riley attends a Centre Based Day Care. They charge $140 per day. To work out the hourly fee divides the daily session rate by the number of hours in the session. If the daily session rate is based on an 11-hour session, this means the hourly fee is $12.72.

Because this is more than the maximum, their level of subsidy will be based on the cap of $11.77. If their combined family income is $65000 they will be entitled to a subsidy of $9.82 per hour (85% of $11.55).

Child Care Subsidy Net Fee Calculator

We have developed a Child Care Subsidy Net Fee Calculator, to give you an idea of how much your out of pocket costs are after the Child Care Subsidy (CCS) has been applied at your nominated Kids Club centre. Click here to go to the Kids Club Child Care Subsidy Calculator 


Here are some interesting links:

Forms for your Centrelink Customer Reference Number (CRN): www.centrelink.gov.au

Information for your Child Care Subsidy: www.humanservices.gov.au/childcaresubsidy