Child Care Subsidy (CCS) Changes from 7 July 2025: What Families Need to Know 

At Aspire Early Education, we know how important it is for families to feel confident and informed when it comes to the cost of early childhood education. 

From 7 July 2025, changes to the Child Care Subsidy (CCS) will come into effect. These updates happen every year to keep pace with the rising cost of living, and they impact how much the Government contributes toward your childcare fees. 

We’ve broken down everything you need to know in simple terms to help you feel prepared and supported.

What’s Changing in 2025–26? 

The Government is increasing two key parts of the Child Care Subsidy: 

1. Hourly Rate Caps Are Increasing 

Each year, the Government updates the hourly rate cap—this is the maximum hourly amount they will subsidise through the Child Care Subsidy (CCS).

2025–26 Hourly Rate Caps 

Care Type	Old Hourly Rate Cap	New Hourly Rate Cap
Centre-Based Day Care	$14.29	$14.63

What does this mean for families? 

The higher caps in 2025–26 mean the Government may cover more of your child care fees 

• If your centre’s fees are within the cap, your gap fee (what you pay) may stay the same  

• If your centre’s fees are still above the cap, your out-of-pocket costs may slightly decrease.

2. Family Income Thresholds Are Being Updated 

The amount of CCS you receive depends on your family income. From 7 July 2025, here’s how it will work: 

• Families earning up to $85,279 will receive the maximum CCS rate of 90% 

• Families earning between $85,279 and $535,279 will see their subsidy decrease by 1% for every $5,000 over the threshold 

• Families earning $535,279 or more will no longer receive CCS 

These thresholds are reviewed each year in line with the Consumer Price Index (CPI) to ensure fairness and reflect economic changes. 

Support for Families with More Than One Child 

If you have more than one child aged under 6 in care, you may be eligible for an even higher CCS rate of up to 95% for your younger child. 

This applies even if the children go to different services—so it’s worth checking what your family could be entitled to.

What Can Families Do Now? 

Here’s how you can prepare ahead of the 7 July changes: 

1. Check your income details in your MyGov account to ensure they’re up to date 

2. Use our CCS Calculator to get an estimate of your entitlements 

3. Speak with our Aspire centre team — we're here to explain the changes and help you understand what it means for your family 

We’re Here to Help 

We understand that changes to the Child Care Subsidy can feel complex and, at times, overwhelming—especially when you're trying to plan ahead for your family. We know how important it is to have clarity and confidence when it comes to understanding your fees and entitlements. 

If you have any questions, or just want to talk things through, our friendly team is always here to support you. No question is too small—your peace of mind matters to us. 

Want to estimate your new CCS? 

Use our Aspire CCS Calculator!

Need to update your details? 

Log in to MyGov and check your income and activity information.

Want to learn more?

To book a tour, learn more about a centre, or connect with our team, follow the links below:

• Find an Aspire Centre near you
• Book a tour at an Aspire centre
• Contact the Aspire team