When the Child Care Subsidy (CCS) program commences on 2 July 2018, it will:
replace the Child Care Benefit (CCB) and Child Care Rebate (CCR) with a single, means-tested subsidy
be paid directly to service providers to be passed on to families
be simpler than the current multi-payment system
be better targeted and provide more assistance to low and middle income families.
You can get more information about Child Care Subsidy including latest updates and news from Services Australia.
If you want to learn how to claim Child Care Subsidy, please refer to the link below:
How to claim Child Care Subsidy - Child Care Subsidy - Services Australia
For FY25, the rates for each child are worked out using two separate income tests. The "standard rate child" is usually the eldest CCS eligible child aged 5 or under. The standard rate child will get the standard CCS rates. The "higher rate child" is the second and any younger children aged 5 or under. The higher rate for second and younger children is calculated using the for second and younger children. The higher subsidy for second and younger children will end when a family earns $365,611 or more for FY25.
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $83,280 |
90% |
|
More than $83,280 to below $533,280 |
Decreasing from 90% |
|
$533,280 or more |
0% |
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $141,321 |
95% |
|
More than $141,321 to below $186,321 |
Decreasing from 95% |
|
$186,321 to below $265,611 |
80% |
|
$265,611 to below $355,611 |
Decreasing from 80% |
|
$355,611 to below $365,611 |
50% |
|
$365,611 or more |
Higher CCS rates no longer apply, all children in the family will receive the standard CCS rate |
From 10 July 2023, the rates for each child are worked out using two separate income tests. The "standard rate child" is usually the eldest CCS eligible child aged 5 or under. From 10 July 2023, the standard rate child will get the standard CCS rates. The "higher rate child" is the second and any younger children aged 5 or under. The higher rate for second and younger children is calculated using the for second and younger children. The higher subsidy for second and younger children will end when a family earns $362,408 or more for FY24.
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $80,000 |
90% |
|
More than $80,000 to below $530,000 |
Decreasing from 90% |
|
$530,000 or more |
0% |
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $138,118 |
95% |
|
More than $138,118 to below $183,118 |
Decreasing from 95% |
|
$183,118 to below $262,408 |
80% |
|
$262,408 to below $352,408 |
Decreasing from 80% |
|
$352,408 to below $362,408 |
50% |
|
$362,408 or more |
Higher CCS rates no longer apply, all children in the family will receive the standard CCS rate |
* Subsidy tapers down by 1 per cent for each $3000 of family income.
Families earning $72,466 or less will receive a subsidy of 85 per cent of the actual fee charged (up to 85 per cent of an hourly fee cap). For family incomes above $72,466, the subsidy tapers down to 20 per cent when family income reaches $356,756. For families with incomes of $356,756 or more, the subsidy is zero per cent. From 7 March 2022, families with more than one child aged 5 or under in care will get a higher subsidy for their second child and younger children.
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $72,466 |
Standard CCS: 85 per cent Higher CCS: 95 per cent |
|
More than $72,466 to below $177,466 |
Standard CCS: Tapering to 50 per cent* Higher CCS: Standard CCS % + 30% and Capped at 95% |
|
$177,466 to below $256,756 |
Standard CCS: 50 per cent Higher CCS: 80 per cent |
|
$256,756 to below $346,756 |
Standard CCS: Tapering to 20 per cent* Higher CCS: Standard CCS % + 30% |
|
$346,756 to below $356,756 |
Standard CCS: 20 per cent Higher CCS: 50 per cent |
|
$356,756 or more |
Standard CCS: 0 per cent Higher CCS: 0 per cent |
* Subsidy tapers down by 1 per cent for each $3000 of family income.
Families earning $70,015 or less will receive a subsidy of 85 per cent of the actual fee charged (up to 85 per cent of an hourly fee cap). For family incomes above $70,015, the subsidy tapers down to 20 per cent when family income reaches $354,305. For families with incomes of $354,305 or more, the subsidy is zero per cent. From 7 March 2022, families with more than one child aged 5 or under in care will get a higher subsidy for their second child and younger children.
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $70,015 |
Standard CCS: 85 per cent Higher CCS: 95 per cent |
|
More than $70,015 to below $175,015 |
Standard CCS: Tapering to 50 per cent* Higher CCS: Standard CCS % + 30% and Capped at 95% |
|
$175,015 to below $254,305 |
Standard CCS: 50 per cent Higher CCS: 80 per cent |
|
$254,305 to below $344,305 |
Standard CCS: Tapering to 20 per cent* Higher CCS: Standard CCS % + 30% |
|
$344,305 to below $354,305 |
Standard CCS: 20 per cent Higher CCS: 50 per cent |
|
$354,305 or more |
Standard CCS: 0 per cent Higher CCS: 0 per cent |
* Subsidy tapers down by 1 per cent for each $3000 of family income.
Families earning $69,390 or less will receive a subsidy of 85 per cent of the actual fee charged (up to 85 per cent of an hourly fee cap). For family incomes above $69,390, the subsidy tapers down to 20 per cent when family income reaches $353,680. For families with incomes of $353,680 or more, the subsidy is zero per cent.
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $69,390 |
85 per cent |
|
More than $69,390 to below $174,390 |
Tapering to 50 per cent* |
|
$174,390 to below $253,680 |
50 per cent |
|
$253,680 to below $343,680 |
Tapering to 20 per cent* |
|
$343,680 to below $353,680 |
20 per cent |
|
$353,680 or more |
0 per cent |
* Subsidy tapers down by 1 per cent for each $3000 of family income.
Families earning $68,163 or less will receive a subsidy of 85 per cent of the actual fee charged (up to 85 per cent of an hourly fee cap). For family incomes above $68,163, the subsidy tapers down to 20 per cent when family income reaches $352,453. For families with incomes of $352,453 or more, the subsidy is zero per cent.
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $68,163 |
85 per cent |
|
More than $68,163 to below $173,163 |
Tapering to 50 per cent* |
|
$173,163 to below $252,453 |
50 per cent |
|
$252,453 to below $342,453 |
Tapering to 20 per cent* |
|
$342,453 to below $352,453 |
20 per cent |
|
$352,453 or more |
0 per cent |
* Subsidy tapers down by 1 per cent for each $3000 of family income.
Families earning $66,958 or less will receive a subsidy of 85 per cent of the actual fee charged (up to 85 per cent of an hourly fee cap). For family incomes above $66,958, the subsidy tapers down to 20 per cent when family income reaches $341,248. For families with incomes of $351,248 or more, the subsidy is zero per cent.
|
Combined Family Income |
Subsidy per cent of the actual fee charged (up to relevant percentage of the hourly fee cap) |
|---|---|
|
Up to $66,958 |
85 per cent |
|
More than $66,958 to below $171,958 |
Tapering to 50 per cent* |
|
$171,958 to below $251,248 |
50 per cent |
|
$251,248 to below $341,248 |
Tapering to 20 per cent* |
|
$341,248 to below $351,248 |
20 per cent |
|
$351,248 or more |
0 per cent |
* Subsidy tapers down by 1 per cent for each $3000 of family income.
The hourly rate caps are the maximum hourly rate used to calculate families' Child Care Subsidy for each service type. The hourly rate caps are adjusted annually in accordance with CPI. The table below shows the hourly rate caps that apply from 8 July 2024.
|
Service type |
Maximum hourly fee cap (children below school age) |
Maximum hourly fee cap (school aged children) |
|---|---|---|
|
Centre Based Day Care (Long Day Care and Occasional Care) |
$14.29 |
$12.51 |
|
Outside School Hours Care (Before, After, and Vacation care) |
$14.29 |
$12.51 |
|
Family Day Care |
$13.24 |
|
|
In Home Care |
$38.87 (per family) |
|
Families will receive a fortnightly statement of child care usage from their service provider, which includes the payment of the subsidy and out of pocket costs. This will make the service more accountable and provide greater transparency for families' entitlements.
The hourly rate caps are the maximum hourly rate used to calculate families' Child Care Subsidy for each service type. The hourly rate caps are adjusted annually in accordance with CPI. The table below shows the hourly rate caps that apply from 10 July 2023.
|
Service type |
Maximum hourly fee cap (children below school age) |
Maximum hourly fee cap (school aged children) |
|---|---|---|
|
Centre Based Day Care (Long Day Care and Occasional Care) |
$13.73 |
$12.02 |
|
Outside School Hours Care (Before, After, and Vacation care) |
$13.73 |
$12.02 |
|
Family Day Care |
$12.72 |
|
|
In Home Care |
$37.34 (per family) |
|
Families will receive a fortnightly statement of child care usage from their service provider, which includes the payment of the subsidy and out of pocket costs. This will make the service more accountable and provide greater transparency for families' entitlements.
The hourly rate caps are the maximum hourly rate used to calculate families' Child Care Subsidy for each service type. The hourly rate caps are adjusted annually in accordance with CPI. The table below shows the hourly rate caps that apply from 11 July 2022.
|
Service type |
Maximum hourly fee cap (children below school age) |
Maximum hourly fee cap (school aged children) |
|---|---|---|
|
Centre Based Day Care (Long Day Care and Occasional Care) |
$12.74 |
$11.15 |
|
Outside School Hours Care (Before, After, and Vacation care) |
$12.74 |
$11.15 |
|
Family Day Care |
$11.80 |
|
|
In Home Care |
$34.64 (per family) |
|
Families will receive a fortnightly statement of child care usage from their service provider, which includes the payment of the subsidy and out of pocket costs. This will make the service more accountable and provide greater transparency for families' entitlements.
The hourly rate caps are the maximum hourly rate used to calculate families' Child Care Subsidy for each service type. The hourly rate caps are adjusted annually in accordance with CPI. The table below shows the hourly rate caps that apply from 13 July 2021.
|
Service type |
Maximum hourly fee cap (children below school age) |
Maximum hourly fee cap (school aged children) |
|---|---|---|
|
Centre Based Day Care (Long Day Care and Occasional Care) |
$12.31 |
$10.77 |
|
Outside School Hours Care (Before, After, and Vacation care) |
$12.31 |
$10.77 |
|
Family Day Care |
$11.40 |
|
|
In Home Care |
$33.47 (per family) |
|
Families will receive a fortnightly statement of child care usage from their service provider, which includes the payment of the subsidy and out of pocket costs. This will make the service more accountable and provide greater transparency for families' entitlements.
The hourly rate caps are the maximum hourly rate used to calculate families' Child Care Subsidy for each service type. The hourly rate caps are adjusted annually in accordance with CPI. The table below shows the hourly rate caps that apply from July 2020.
|
Service type |
Maximum hourly fee cap (children below school age) |
Maximum hourly fee cap (school aged children) |
|---|---|---|
|
Centre Based Day Care (Long Day Care and Occasional Care) |
$12.20 |
$10.67 |
|
Outside School Hours Care (Before, After, and Vacation care) |
$12.20 |
$10.67 |
|
Family Day Care |
$11.30 |
|
|
In Home Care |
$33.17 (per family) |
|
Families will receive a fortnightly statement of child care usage from their service provider, which includes the payment of the subsidy and out of pocket costs. This will make the service more accountable and provide greater transparency for families' entitlements.
The hourly rate caps are the maximum hourly rate used to calculate families' Child Care Subsidy for each service type. The hourly rate caps are adjusted annually in accordance with CPI. The table below shows the hourly rate caps that apply from 1 July 2019.
|
Service type |
Maximum hourly fee cap (children below school age) |
Maximum hourly fee cap (school aged children) |
|---|---|---|
|
Centre Based Day Care (Long Day Care and Occasional Care) |
$11.98 |
$10.48 |
|
Outside School Hours Care (Before, After, and Vacation care) |
$11.98 |
$10.48 |
|
Family Day Care |
$11.10 |
|
|
In Home Care |
$32.58 (per family) |
|
Families will receive a fortnightly statement of child care usage from their service provider, which includes the payment of the subsidy and out of pocket costs. This will make the service more accountable and provide greater transparency for families' entitlements.
The hourly rate caps are the maximum hourly rate used to calculate families' Child Care Subsidy for each service type. The hourly rate caps are adjusted annually in accordance with CPI. The table below shows the hourly rate caps that apply from 2 July 2018.
|
Service type |
Maximum hourly fee cap (children below school age) |
Maximum hourly fee cap (school aged children) |
|---|---|---|
|
Centre Based Day Care (Long Day Care and Occasional Care) |
$11.77 |
$10.29 |
|
Outside School Hours Care (Before, After, and Vacation care) |
$11.77 |
$10.29 |
|
Family Day Care |
$10.90 |
|
|
In Home Care |
$32.00 (per family) |
|
Families will receive a fortnightly statement of child care usage from their service provider, which includes the payment of the subsidy and out of pocket costs. This will make the service more accountable and provide greater transparency for families' entitlements.
No annual cap. The Australian Government removed the annual cap.
No annual cap. The Australian Government removed the annual cap.
No annual cap. The Australian Government removed the annual cap.
From 1 July 2021, families earning $190,015 or less per year will not be subject to a cap on the amount of Child Care Subsidy they can access. Families earning over $190,015 and under $354,305 will still have an annual cap which will increase to $10,655 per year per child. From 10 December 2021 the Australian Government removed this annual cap.
From 1 July 2020, families earning $189,390 or less per year will not be subject to a cap on the amount of Child Care Subsidy they can access. Families earning over $189,390 and under $353,680 will still have an annual cap which will increase to $10,560 per year per child.
From 1 July 2019, families earning $188,163 or less per year will not be subject to a cap on the amount of Child Care Subsidy they can access. Families earning over $188,163 and under $352,453 will still have an annual cap which will increase to $10,373 per year per child.
From 2 July 2018, families earning $186,958 or less per year will not be subject to a cap on the amount of Child Care Subsidy they can access. Families earning over $186,958 and under $351,248 will still have an annual cap which will increase to $10,190 per year per child.
Family entitlement to the Child Care Subsidy will be determined by a three-step activity test, more closely aligning the hours of subsidised care with the combined hours of work, training, study or other recognised activity undertaken, and providing for up to 100 hours of subsidy per fortnight.
|
Step |
Hours of activity (per fortnight) |
Maximum number of hours of subsidy (per fortnight) |
|---|---|---|
|
1 |
Less than 8 hours |
0 hours if you earn above $83,820 |
|
2 |
8 hours to 16 hours |
36 hours |
|
3 |
More than 16 hours to 48 hours |
72 hours |
|
4 |
More than 48 hours |
100 hours |
A broad range of activities will meet the activity test requirements including: paid work; being self‑employed; doing unpaid work in a family business; looking for work; volunteering or studying. There will be exemptions to the activity test for parents who legitimately cannot meet the activity requirements.
Low income families on $80,000 (2023–24) or less a year who do not meet the activity test will be able to access 24 hours of subsidised care per fortnight without having to meet the activity test, as part of the Child Care Safety Net.
If you don't meet the activity test and you have a preschool aged child attending an early educational program (such as a preschool or kindergarten program) at a Centre Based Day Care service, you can access 36 hours of subsidised care per fortnight.
From 10 July 2023, Aboriginal and Torres Strait Islander children can get at least 36 hours of CCS per fortnight, regardless of their family's circumstances.
You can get a higher subsidy if all of these apply:
The standard rate child will get the standard CCS rate. This is usually the eldest CCS-eligible child aged 5 or under in the family. Younger children will get the higher subsidy.
Note: The higher subsidy will not apply to In Home Care sessions as IHC is subsidised on a family rather than per child basis. However, children aged 5 or under in IHC are included in the family unit when determining the standard rate child. A family with their standard rate child in IHC will get the higher subsidy for younger children who attend other care types.
Families earning more than $190,015 (2021–22) have an annual subsidy cap of $10,655 per child each financial year. From 10 December 2021 the Australian Government is removing this annual cap.
The subsidy will be paid directly to your child care service provider fortnightly in arrears, based on the attendance records (session reports) the service submits. You will pay any difference between the actual fee you are charged and the subsidy that is paid on your behalf.
The capacity to make end-of-year lump sum claims will not be available under the New Child Care Package. If you are uncertain about your income estimate, you are encouraged to consider making a claim for Child Care Subsidy. Your Child Care Subsidy percentage will be based on your estimated combined annual family income. The easiest way to estimate your income is to base it on your previous year's tax return as well as any expected pay rises. Your actual subsidy entitlement will be worked out through an end-of-year reconciliation when your actual adjusted taxable income is known. Please note: 5 per cent of your weekly Child Care Subsidy entitlement will be withheld unitl the end-of-year reconciliation. Following reconciliation, if you haven't received enough Child Care Subsidy based on your adjusted taxable income you will receive a lump sum payment. If you have been paid too much Child Care Subsidy, you will have a debt to repay.
The Child Care Safety Net is being progressively rolled out from July 2016 and aims to give the most vulnerable children a strong start, while supporting parents into work.
The Child Care Safety Net has three components:
1. Additional Child Care Subsidy (July 2018) – a top up payment for families who are genuinely disadvantaged.
|
Extra support for |
Additional subsidy |
|---|---|
|
Children at risk of serious abuse or neglect; |
A subsidy equal to 100 per cent of the actual fee charged (up to 120 per cent of the hourly fee cap), up to 100 hours of assistance per fortnight |
|
Parents transitioning to work from income support |
A subsidy equal to 95 per cent of the actual fee charged (up to 95 per cent of the hourly fee cap), hours of assistance determined by the activity test |
2. Community Child Care Fund (July 2018) – a grants program to assist services to:
reduce the barriers in accessing child care, in particular for disadvantaged or vulnerable families and communities
provide sustainability support for child care services experiencing viability issues
provide capital support to increase the supply of child care places in areas of high unmet demand.
$61.8 million of the CCCF will provide a third funding stream for Budget Based Funded services to ensure their viability in the new system. This is in addition to the Child Care Subsidy and the Additional Child Care Subsidy.
The Connected Beginnings program, which is part of the CCCF, commenced in July 2016. The program will provide for the integration of child care, maternal and child health, and family support services in a number of Indigenous communities experiencing disadvantage, as recommended by Andrew Forrest in his review of Indigenous jobs and training - Creating Parity.
3. Inclusion Support Programme (commenced July 2016) – assists mainstream services to improve their capacity and capability to provide inclusive practices and address barriers to participation for children with additional needs, particularly children with disability.
Government figures say almost 816,000 families will be better off based on 1.2 million children were in child care in 2016.
128,000 families will get reduced subsidies, including 52,100 earning less than $66,958 a year (mainly due to activity test).
The Government recognises that the transition from the existing child care system to a new system will be a significant change for Australian families.
The legislation replaces existing child care payments with the Child Care Subsidy and Additional Child Care Subsidy. Families and service providers will have time to adjust to the new model and we are working towards a seamless introduction of new systems and arrangements.
All families who use, or need to use, child care in the future will be kept informed of the progress of the changes and given timely information on how they may be affected.
Centrelink will contact families directly to provide information on current entitlements and how they may change under new arrangements. This may include asking families for additional information, to ensure that they move onto the new payment system smoothly.
● Some strengthened compliance powers commence
● Child Care Subsidy and Additional Child Care Subsidy commence (replacing CCB and CCR)
● Community Child Care Fund commences
● New Compliance Framework commences
● A Post Implementation Review following full implementation will be conducted as part of a formal evaluation of the package.
A range of information resources are available to assist families and providers understand the details of the new package.