Child Care Subsidy (CCS)

The Child Care Subsidy (CCS) reduces families out-of-pocket childcare costs.

What is the Child Care Subsidy (CCS)?

Child Care Subsidy (CCS) provides families with financial assistance to help cover the costs of approved child care by the Australian Government. It is paid directly to childcare providers to reduce your total childcare fees

This includes an activity and income test. Once approved, the government passes the child care subsidy directly onto your childcare service. Parents are responsible for notifying the Department of Human Services of any changes that may affect their assessment. This includes changes to your family income or changes to your activity.

Eligibility

  • Age – Your child must be aged 13 or under and must not attend secondary school (unless an exemption applies) and enrolled for minimum 2 days a week.
  • Immunisation – The child must meet immunisation requirements as outlined by the Australian Government.
  • Residency – Australian Citizens, Permanent Residents and certain temporary visa holders such as Partner Provisional (820/309), Temporary Protection visa or Special Category Visa (SCV) holder.

How much can I claim?

Three factors determine how much CCS a family receives:

  • combined annual family income
  • activity level test
  • type of child care used
Your family income Child Care Subsidy percentage
$0 to $88,520
90%
More than $88,520 to below $538,520

Between 90% and 0%. The percentage goes down by 1% for every $5,000 of income your family earns above $88,520.

$538,520 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.

Activity Level Test

  • Paid work, including leave Volunteering Studying (approved course)
  • Self-employed work
  • Working for free (in the family business)
  • Actively job seeking
  • Time taken to travel between the child care service and your place of work, training, study, or other approved activity will also be included.
  • Participating in an approved course of education or study
  • Training to improve work skills and/or employment prospects
  • Actively setting up a new business that has not yet began operation (up to six months)
Hours of recognised participation each fortnight Hours of subsidised care each fortnight
48 hours or less
72 hours
More than 48 hours
100 hours

If you have a partner, we look at both of your recognised participation hours and use the lower of the two. You can also get 100 hours with a valid exemption, such as for Aboriginal and Torres Strait Islander children. The hours apply to each child.” The heading could change to “Recognised Participation (Activity Test)

Hourly Rate Cap

There’s a different hourly rate cap depending on the type of approved child care you use.

Type of child care Hourly rate cap
Centre Based Day Care (long day care and occasional care)
$15.19
Family Day Care
$14.08
Outside School Hours Care (before, after and vacation care)
$15.19
In Home Care
$41.31 per family

A child below school age is a child who is not attending school or is younger than 6 years old.” Update the intro too: “The hourly rate cap depends on both the type of approved child care you use and your child’s age. Your CCS percentage applies to the lower of your hourly fee or the hourly rate cap.

How do I apply?

You apply for the CCS online using your Services Australia or MyGov account. You can use the Services Australia eligibility tool to guide you through the process.

To find out more go to servicesaustralia.gov.au/childcaresubsidy