Childcare Subsidy Guide
The Childcare subsidy (CCS) is a payment from the Australian Government that helps families pay for childcare. Instead of paying the full cost of childcare, the government covers part of the cost, and you pay the rest. The subsidy is paid directly to your childcare provider, so your fees are lower.
Since Aspire Early Education & Kindergarten is a government-approved childcare provider, you will be eligible for a subsidy to reduce your childcare fees.
This initiative helps families access affordable, high-quality, and flexible childcare. By lowering your out-of-pocket costs, the government makes it easier for your child to receive consistent care and early education, while giving parents and carers the freedom to work, study, or pursue other commitments with peace of mind.
Who is Eligible for the Childcare Subsidy?
Understanding Your Eligibility for the Child Care Subsidy
At Aspire, we know that navigating childcare costs can be challenging. The Childcare subsidy (CCS) is designed to make childcare more affordable by reducing the fees you pay.
Are you eligible?
You may qualify for the CCS if you or your partner meet all of the following criteria:
- Care for your child at least 2 nights per fortnight (or have 14% care)
- Are responsible for paying fees at an approved childcare service
- Meet the residence rules set by the government
Is your child eligible?
To receive the subsidy, your child must:
- Meet immunisation requirements
- Not be attending secondary school unless an exemption applies
- Be 13 or under (except in certain circumstances)
If a child doesn’t attend a session of care at least once in 26 consecutive weeks, they will stop being eligible for CCS. If a child starts to attend care again, a family can make a new claim for CCS.
Residency rules
To be eligible for Childcare subsidy, families must meet the residence rules.
On the day you claim, you or your partner must be living in Australia and have one of the following:
- Australian citizenship
- A permanent visa
- A special category visa
- A certain temporary visa that is partner provisional or temporary protection type visa.
How else can families meet the rules
Families may also meet the residence rules if any of the following apply:
- You or your partner are a student from overseas and are receiving financial assistance from the Australian Government to study in Australia
- You’re in hardship
- Special circumstances apply
How to continue receiving Child Care Subsidy
To keep getting your subsidy, you or your partner must continue to meet the residence rules.
Immunisation requirements
To meet the immunisation requirements, children must:
- Meet the Department of Health and Aged Care’s age appropriate early childhood vaccination schedule
- Be on an approved catch-up schedule in line with the Department of Health and Aged Care’s current Australian Immunisation Handbook
- Have an approved medical exemption recorded on the Australian Immunisation Register (AIR).
If your family receives Child Care Subsidy and your child stops meeting these requirements, you have 63 days to start meeting them again. If you don’t, your subsidy will stop.
What counts as a medical exemption
The only reasons children might be able to get an exemption from having a vaccine are if your child:
- Had anaphylaxis after a previous dose of a vaccine
- Had anaphylaxis after a dose of any component of a vaccine
- Are significantly immunocompromised—for live vaccines only
- Have natural immunity—for hepatitis B, measles, mumps, rubella and chickenpox only
Finding an approved childcare provider
Approved childcare providers are services that have been recognised by the Australian Government to offer Child Care Subsidy (CCS), helping to reduce your childcare fees. These services include:
- Centre-Based Day Care, including long day care and occasional care
- Family Day Care
- Outside School Hours Care, including before, after, and vacation care
- In-Home Care
Since Aspire Early Education & Kindergarten s a government-approved childcare provider, you’ll be eligible for the Child Care Subsidy (CCS), making it easier to manage your childcare costs and reduce the fees you pay.
How Much CCS Can You Receive?
This depends on your circumstances.
To work out how much CCS you’re eligible for, Services Australia look at all the following:
- Your family’s income
- The hourly rate cap based on the type of approved child care you use and your child’s age
- The hours of activity you and your partner do
- The number of children in your care
The amount of subsidised child care you can access per fortnight applies to each child. Use our CCS calculator to estimate your CCS and out of pocket costs.
Child Care Subsidy Calculator
2024-2025 CCS Rates and Thresholds
Understanding CCS Rates and Thresholds
The Child Care Subsidy (CCS) helps reduce the fees you pay to your childcare provider, and the amount you receive depends on several factors, including your family income, the Hourly rate caps, Hours of activity and the number of children in your care.
Here’s a breakdown of how the CCS rates and thresholds work:
Income Test
The amount of subsidy you receive is based on your combined family’s income. The higher your income, the lower the subsidy rate you’ll get. Below is an overview of the income thresholds and subsidy rates:
| Family Income | Subsidy Rate |
| Up to $83,280 | 90% |
| More than $83,280 to below $533,280 | Decreasing from 90% The percentage decreases by 1% for every $5,000 of income a family earns |
| $533,280 or more | 0% |
Combined Family Income
Combined family income refers to the total taxable income of both parents (or guardians) in a household. This includes:
- Salaries and wages
- Business and investment income
- Government payments and pensions
- Superannuation withdrawals (if taxable)
- Foreign income
- Rental income
The Australian government assesses combined family income annually based on tax returns lodged with the Australian Taxation Office (ATO).
Activity Test
Your CCS rate is also influenced by how much care you need, which is based on your activity level (like work, study, or volunteering). The more hours of care you need, the higher your subsidy rate.
Here’s a simple guide to the hours of care based on your activity:
| Activity level each fortnight | Hours of subsidised care each fortnight |
| Less than 8 hours | 0 hours if you earn above $83,280 24 hours if you earn $83,280 or below |
| More than 8 to 16 hours | 36 hours |
| More than 16 to 48 hours | 72 hours |
| Over 48 hours | 100 hours |
Hourly Rate Caps
The hourly rate caps are adjusted annually based on the Consumer Price Index (CPI).
The maximum hourly rate that CCS covers/subsidises rate is based on the type of approved care. The 2023–24 (most recent) hourly rate caps for each care type are outlined below.
| Care type | Hourly rate cap for children below school age |
| Centre Based Day Care | $14.29 |
| Outside School Hours Care | $14.29 |
| Family Day Care | $13.24 |
| In Home Care (per family) | $38.87 |
Hourly Fee
The hourly fee is the amount the child care service charges for each hour of care. If the service charges a daily session rate, divide this by the number of hours in the session.
The number of hours in a session may not be the number of hours the child actually attends.
Example of calculating the hourly fee for a daily session rate
Jan has a child named Riley. Riley attends a Centre Based Day Care. They charge $100 per day based on a 10 hour session.
Jan works out the hourly fee by dividing the daily session rate by the number of hours in the session. This means the hourly fee is $10. CCS will cover the full amount of the session as this is under the CCS hourly rate cap.
How is CCS Calculated?
The CCS rate is calculated based on both your income and activity level. For example, if your family income is under $80,000 and you work 40 hours a week, you may receive 90% of CCS and 100 hours fortnightly fees covered by the subsidy.
To find out how much CCS you may be eligible for, use our CCS calculator to get an estimate.
How to Apply for the Childcare Subsidy
Simply head to the Services Australia Website and follow the step-by-step guide.
You need to link your myGov account to Centrelink to make your claim. If your Centrelink online account is linked to myGov, you can apply online.
To do this:
- Sign in to myGov.
- Select Make a claim or view claim status, then Make a claim.
- Under Families select Get started.
- Select Apply for Family Assistance Payments (including Paid Parental Leave) then follow the prompts to complete your claim.
CCS Application Guide
Recent Changes to CCS
The Child Care Subsidy (CCS) changed on July 10, 2023. The changes included:
- Increased maximum rate: The maximum CCS rate increased from 85% to 90%
- Increased income limit: The income limit for CCS increased from $356,756 to $530,000
- Adjusted rate based on income: The CCS rate decreases by 1% for every $5,000 of family income above $80,000
- Adjusted hourly rate caps: The hourly rate caps were adjusted based on the Consumer Price Index (CPI)
- Changes for Aboriginal and Torres Strait Islander children: Families with Aboriginal or Torres Strait Islander children in care can receive at least 36 hours of subsidized care per fortnight
Extra Support – Additional CCS
In addition to the standard Child Care Subsidy (CCS), families facing specific challenges may be eligible for extra government support through Additional Child Care Subsidy (ACCS). This provides higher levels of assistance to ensure children can access care when they need it most.
- ACCS Temporary Financial Hardship: Provides short-term support for families experiencing significant financial difficulty due to unexpected events, such as job loss or natural disasters.
- ACCS Transition to Work: Helps parents who are moving from income support into work, study, or training by providing additional subsidies.
- ACCS Grandparent: Supports grandparents who are the primary carers of their grandchildren by covering more of their child care costs.
- ACCS Child Wellbeing: Assists children who are at risk of harm, abuse, or neglect, ensuring they can access quality care in a safe environment.
Families who may qualify for these subsidies should check their eligibility and apply through Centrelink. Let us know if your circumstances change so we can help you access the right support.
Make the Most of CCS and Funded Kinder
Aspire Early Education & Kindergarten offer three types of sessions - Full Day, 10 hour and 9 hour sessions.
These sessions are offered to maximise families CCS entitlements & provide the most affordable fees. Please speak to your Centre Manager to find out what sessions work best for you.
Combining CCS with Funded Kindergarten
Families can receive both the Child Care Subsidy (CCS) and funded kindergarten payments together in eligible child care services.
At Aspire, we offer the government-funded 3-year-old kindergarten and 4-year-old kindergarten programs. you can claim CCS for the care hours outside of the funded kindergarten session. This helps reduce costs while ensuring your child receives high-quality early education.
Funded Kinder Guide
Keeping Information Updated
Ensure your income details, activity hours, and child care arrangements are up to date with Centrelink to receive the correct subsidy amount.
Families will receive updates if their entitlements change—if this happens, let us know so we can assist you in maximising your benefits.
Childcare Subsidy FAQ's
How will I receive CCS payments?
At Aspire, subsidies are paid directly to us, and we pass them on to you as a fee reduction. This means you only need to pay the difference between the subsidy and the childcare fees charged, ensuring a seamless and straightforward process for managing your daycare costs.
Is there a cap on CCS?
Previously, families earning over a certain income had a cap on how much CCS they could receive each year. However, from July 10, 2023, the government removed the annual CCS cap, meaning families can receive subsidies throughout the year without hitting a maximum limit.
That said, there are hourly rate caps depending on the type of care:
Centre-based day care & family day care: CCS is capped at a set hourly rate, and families must pay any gap if their provider charges more than this amount.
When should I apply for CCS?
It's encouraged to apply for the Child Care Subsidy (CCS) at least 3 months before your child starts care. This allows ample time for processing and ensures your subsidy is in place when needed. Once approved, your CCS application remains valid for 26 weeks. Applying early ensures your subsidy is active when your child begins care.
How long does CCS approval take?
The processing time for CCS applications can vary. While some applications are processed within 2-6 weeks, others may take longer, especially if additional information is required. It's advisable to apply early to account for any potential delays.
Who gets a higher childcare subsidy?
Families with lower incomes, those with multiple children under 5, and families approved for the Additional Child Care Subsidy (ACCS) may receive a higher childcare subsidy. For instance, if you have more than one child aged 5 or younger in childcare, you may be eligible for a higher CCS rate.
Is there a minimum number of hours and days my child must attend?
No, there is no minimum attendance requirement for CCS. The subsidy applies regardless of how many hours or days your child attends childcare.
Is there a gap or out-of-pocket expense?
Yes, families are responsible for paying the difference between the childcare provider's fees and the CCS amount. This is commonly referred to as the "gap fee."
Is CCS based on gross or net income?
CCS assessments are based on your family's adjusted taxable income, which is a form of gross income.
Can CCS be backdated?
Yes, CCS can be backdated up to 28 days from the date you submit your claim. This means you can receive subsidies for childcare provided in the 28 days prior to your claim submission.
Do I have to apply for CCS every year?
No, you don't need to reapply for CCS each year. However, if you haven't used a childcare service for 26 weeks, your CCS may be canceled, and you would need to reapply.
What happens to CCS if my circumstances change?
If your circumstances change, such as a change in income, activity levels, or family composition, you should promptly update your details with Centrelink. This ensures you receive the correct subsidy amount. Additionally, inform your childcare provider of any changes that may affect your entitlements.
Can I receive CCS as a single parent?
Yes, single parents are eligible for CCS, provided they meet the standard eligibility criteria.
When will I stop being eligible for CCS?
You will stop being eligible for CCS when your child turns 13, your family's income exceeds $530,000, or if you no longer meet residency or immunisation requirements.
When will my CCS approval expire?
Your CCS approval may expire if your child is absent from childcare for more than 13 weeks, or if you haven't used childcare services for 26 weeks.
What happens if my child is absent?
CCS allows for up to 42 absence days per financial year without affecting your subsidy. If your child exceeds this number of absences, you may be charged the full fee for additional absent days unless you provide supporting documentation, such as medical certificates.
If you have any more questions or need further clarification, feel free to ask!
Can I receive CCS for multiple children?
Yes, you can receive CCS for multiple children. If you have more than one child aged 5 or younger in childcare, you may be eligible for a higher CCS rate.
What if I start care without receiving CCS?
Full fees will be required to be paid if families are not eligible for CCS. This also includes if your CCS application is Pending. Once CCS is approved and you confirm your CCS Enrolment (Via MyGov), CCS can be backdated up to 28 days and any credits can be utilised to cover the gap fee for future weeks.
What happens to CCS in the case of shared care?
Both parents must apply for the Child Care Subsidy (CCS). The 42 allowable absences will be shared between them.
What if a third party is paying?
If a third party is paying the fees in the absence of Parents and Guardians, CCS will not be applied, and the full fee must be paid.
