Work, training, study or volunteering hours
Your Subsidy Rate
82.0%
Fortnightly Subsidy
$354.24
Annual Subsidy
$9,210.24
Out of Pocket
$2.16
per hour
Everything you need to know about the Child Care Subsidy
Child Care Subsidy (CCS)
The Child Care Subsidy helps families with the cost of approved child care. The subsidy percentage depends on your combined family income -- families earning up to $80,000 receive the maximum 90% subsidy. The subsidy gradually reduces as income increases and reaches 0% at $530,000.
Activity Test
The number of subsidised hours depends on your activity level (work, study, training or volunteering). The more hours of recognised activity, the more subsidised child care hours your family can access per fortnight.
Hourly Fee Cap
The CCS is calculated on the lesser of the actual fee charged or the hourly fee cap set by the government. For centre-based day care, the current cap is around $13.73 per hour. Fees above this cap are not subsidised.
Key Thresholds
Maximum Subsidy Rate
90% for families with income up to $80,000 per year.
Income Cut-off
Subsidy reaches 0% at combined family income of $530,000.
Hourly Fee Cap
Centre-based day care cap is approximately $13.73 per hour.
Activity Test
8–16 hours of activity: up to 36 hours of subsidised care per fortnight.
Centrelink Rates: This calculator uses current CCS rates and thresholds for 2025-26. Actual subsidy depends on additional factors including activity test results and the fee cap. For a definitive assessment, contact Services Australia.
How the government helps reduce your childcare costs based on your family income and activity level
What is the Child Care Subsidy (CCS)?
The Child Care Subsidy is a government payment that reduces the cost of approved childcare. It is paid directly to your childcare provider, lowering the fees you pay. Depending on your family income, it can cover between 0% and 90% of the hourly fee up to a cap. For a family earning A$80,000, the subsidy covers about 85% of fees. It applies to long day care, family day care, outside school hours care, and in-home care.
How is the subsidy percentage calculated?
The percentage depends on your combined family income. For 2024-25, families earning up to about A$83,280 get the maximum 90% subsidy. The rate gradually drops as income rises. At A$180,000, the subsidy is around 50%. At A$353,680, it reduces to the minimum. Families earning above about A$530,000 receive no subsidy. The percentage applies to the hourly fee up to a cap set by the government for each care type.
What is the activity test?
The number of subsidised hours your child can access depends on how many hours of recognised activity you and your partner do per fortnight. Activities include paid work, study, training, volunteering, or looking for work. If you do 8 to 16 hours per fortnight, you get up to 36 hours of subsidised care. At 48 or more hours, you get up to 100 hours. If neither parent meets the activity test, you may get 24 hours per fortnight.
What is the hourly rate cap?
The government sets a maximum hourly fee it will subsidise. For 2024-25, the cap is about A$13.73 per hour for centre-based day care. If your provider charges A$15 per hour and your subsidy rate is 85%, the subsidy covers 85% of A$13.73 (about A$11.67), and you pay the gap fee of A$3.33 per hour. Any amount your provider charges above the cap comes out of your pocket entirely.
How do you apply for the Child Care Subsidy?
You apply through your myGov account linked to Centrelink. You need to provide your family income estimate, details of your recognised activities, and your child's enrolment information. Your childcare provider also confirms the enrolment from their end. Once approved, the subsidy is paid directly to the provider and you only pay the gap fee. You should update your income estimate if your circumstances change.
What happens at end of financial year?
Centrelink balances your subsidy based on your actual income from your tax return. If you earned less than your estimate, you may get a top-up payment. If you earned more, you may have to pay some subsidy back. For example, if you estimated A$100,000 but actually earned A$120,000, your subsidy percentage was too high and you will owe the difference. Always keep your income estimate accurate to avoid surprises.
Can you claim childcare costs as a tax deduction?
No. Childcare costs are not tax-deductible for most families in Australia. The Child Care Subsidy is the main way the government helps with these costs. However, if you run a business from home and use in-home care that partly relates to your work, a small portion might be deductible in rare cases. Generally, the CCS is the only financial support available for childcare expenses.
ATO-Aligned: Based on 2024-25 ATO rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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