What is the Child Care Subsidy (CCS)?

The Child Care Subsidy (CCS) is the main way the Australian Government assists families with the cost of approved child care. CCS is paid directly to approved providers to reduce the child care fees families pay.

Who is eligible to receive the Child Care Subsidy?

Some basic requirements must be satisfied for an individual to be eligible to receive CCS for a child. These include:

• the child must be aged 13 or under and not attending secondary school, except in certain circumstances where an individual may be eligible for a child who does not meet this criteria, such as children with a disability or medical condition in certain circumstances
• the individual must care for the child at least 2 nights per fortnight or have at least 14% care
• the child must meet immunisation requirements
• the individual, or their partner, must meet the residence rules

In addition, to be eligible for CCS the individual must be liable to pay for care provided, the care must be delivered in Australia by an approved child care provider, and not be part of a compulsory education program.

What early childhood education and care services are eligible for the Child Care Subsidy?

To be eligible to receive the Child Care Subsidy, you must be using an approved service.

These are services that have Australian Government approval to get Child Care Subsidy on your behalf to reduce your fees.

Approved child care includes:

• 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.

All early childhood education and care services listed on KindiCare are registered with The Australian Children's Education & Care Quality Authority (ACECQA).

What is the Child Care Subsidy entitlement?

There are four main factors that determine the amount of Child Care Subsidy you and your family may receive. These are:

• Combined annual family income
• Recognised participation – the recognised participation of you and your partner, if you have one
• Service type – the type of approved child care service you use and whether the child is below or above school age
• Number of children in care – whether you have more than one CCS eligible child aged 5 or younger

CCS  is generally paid directly to service providers to be passed on to families as a fee reduction. Families make a co-contribution to their child care fees and pay to the provider the difference between the fee charged and the subsidy amount (also called the out of pocket fee).

To support disadvantaged and vulnerable children attend quality early childhood education and care, state and territory governments can contribute to the out of pocket fee on behalf of the family. For more information, visit Third party payment of gap fees.

There is also targeted additional fee assistance for vulnerable families through the Child Care Safety Net.

Families can get an estimate of what they may be entitled to by entering their details into the Services Australia Payment and Service Finder

How much is the Child Care Subsidy and what does it cover?

The Child Care Subsidy covers a proportion of the cost of approved early childhood education and care services. The amount of subsidy your family may receive depends on your family’s combined income, the type of child care service you use, your recognised participation, and how many CCS eligible children aged 5 or younger are in your family.

The standard Child Care Subsidy percentage you receive is based on your family income. As at 5 January 2026, the following applies:

If your family has more than one CCS eligible child aged 5 or younger, you may get a higher CCS rate for one or more of your younger children. The higher rate only applies if your family income is under $367,563, and it does not apply to In Home Care.

For higher rate children, the current tiers are: 95% for family income from $0 to $143,273; between 95% and 80% for income above $143,273 and below $188,273; 80% for income from $188,273 to below $267,563; between 80% and 50% for income above $267,563 and below $357,563; 50% for income from $357,563 to below $367,563. At $367,563 or more, higher CCS rates no longer apply and all children receive the standard CCS rate.

For more information on the percentage of Child Care Subsidy you’re entitled to visit: https://www.servicesaustralia.gov.au/your-income-can-affect-child-care-subsidy

What changes have been introduced from 5 January 2026?

From 5 January 2026, the CCS activity test was replaced. Families who are eligible for Child Care Subsidy can now get at least 72 hours of subsidised child care each fortnight. These changes are known as the 3 Day Guarantee.

Families can get 100 hours of subsidised child care each fortnight if both partners, or a single parent, do more than 48 hours of recognised participation each fortnight, or if a valid exemption applies. Aboriginal and Torres Strait Islander children can also get 100 hours of subsidised child care each fortnight.

If volunteering or looking for work is your only recognised participation type, only the first 16 hours count towards your participation level.

For more information on these changes and to check if you’re eligible, please visit: https://www.servicesaustralia.gov.au/hours-subsidised-child-care-for-child-care-subsidy 

Where can I find out more information on the Child Care Subsidy?

You can find more information about the Child Care Subsidy, including eligibility requirements at: https://www.servicesaustralia.gov.au/child-care-subsidy