Factors affecting your Child Care Subsidy estimate
CSS entitlements aren’t one-size-fits-all. The Australian Government uses an Activity Test to determine if you’re eligible, as well as how much support you can receive and how many hours of care you can claim each fortnight.
Combined family income
As the Child Care Subsidy is means-tested, your combined annual family income plays a key role in determining how much support you receive. The higher your income, the lower your subsidy percentage. This figure also influences whether your family is subject to an annual payment cap.
You’ll need to add up all sources of income, including wages, government benefits, superannuation, investment returns, and child support. After that, subtract any eligible tax deductions to estimate your total household income for the year.
The number and age of children in care
If you have more than one child aged five or under enrolled in approved child care, you may qualify for a higher CCS rate for your second and younger children.
This extra support is designed to ease the financial pressure for families with multiple children in care at the same time.
Type of childcare
The type of care your child attends impacts the hourly rate cap used by a CCS payment calculator. Each child care service type — including centre-based care, family day care, and outside school hours care — has a maximum hourly rate set by the government.
Your CCS is calculated using your provider’s actual hourly fee or the government’s hourly rate cap, whichever is lower.
Hours of recognised activity
The number of subsidised hours your family can access depends on how much recognised activity you and your partner complete each fortnight.
Recognised activities include things like working, studying, volunteering, job seeking, or being on parental leave. The subsidy is based on the person with the lower number of hours, so both sets of activity hours must be recorded accurately when applying.
Frequently asked questions
What is the Child Care Subsidy?
The Child Care Subsidy (CCS) is financial support from the Australian Government that helps reduce the cost of approved child care for eligible families. It applies to a range of services, including daycare, outside school hours care (OSHC), and in-home care.
Rather than being paid to families directly, the subsidy is sent straight to the child care provider, reducing parents’ out-of-pocket fees for their services.
Families only cover the gap fee, which is the difference between the provider’s total fee and the subsidised amount.
Why was the Child Care Subsidy introduced?
The Child Care Subsidy was brought in to make early childhood education more affordable for families and to support parents and carers who want to return to work or study.
It was also designed to simplify the system by replacing older payments like the Child Care Benefit, Child Care Rebate, and Jobs, Education and Training (JET) Fee Assistance.
By making child care more accessible and easier to navigate, this subsidy helps families balance jobs, education and parenting, while giving more children the chance to benefit from early learning.
Am I eligible for the Child Care Subsidy?
To receive the Child Care Subsidy, your family needs to meet certain eligibility requirements set by Services Australia.
Before using a CSS subsidy calculator, make sure you or your partner meets all of the following criteria:
- Care for your child at least 2 nights per fortnight (equal to 14% of care or more)
- Be responsible for paying the childcare fees to an approved provider
- Live in Australia for at least 46 weeks during the financial year
- Meet residency requirements, meaning you must:
- Be an Australian citizen, or
- Hold a permanent visa, Special Category visa, or an eligible temporary visa
If you don’t meet the standard residency criteria, you may still qualify under certain circumstances, such as being a Commonwealth-sponsored student, experiencing financial hardship, or facing exceptional personal circumstances.
Meanwhile, your child must also meet both of the following:
- Be 13 years old or under, and not attending secondary school
- Be up to date with vaccinations listed on the National Immunisation Program Schedule
Certain exemptions apply. For example, your child may still be eligible if they are:
- Following a catch-up immunisation schedule
- Recorded as having a medical exemption on the Australian Immunisation Register (AIR)
- Aged 13 or under and attending secondary school due to a diagnosed disability
- Aged 14 to 18 with a disability and still enrolled in secondary school
For full eligibility details, please visit the Services Australia website.
What are the 2025-2026 CCS rates and thresholds?
Every financial year, the Australian Federal Government updates the Child Care Subsidy hourly rate caps and family income thresholds in line with the Consumer Price Index (CPI).
The following information outlines the current rates for the 2025–2026 financial year, effective from 7 July 2025.
CCS hourly rate caps
These are the highest hourly amounts the government will subsidise, depending on the type of approved care:
- Centre Based Day Care (children below school age): $14.63 per hour
- Outside School Hours Care (OSHC, school-aged children): $12.81 per hour
If your child care provider charges more than these rates, you will need to pay the difference.
CCS family income thresholds
Your combined annual family income determines the percentage of the hourly rate cap that you’re eligible to receive:
- Income up to $85,279: 90% subsidy
- Income between $85,280 and $535,278: Subsidy reduces by 1% for every $5,000 over $85,279
- Income of $535,279 or more: No subsidy available (0%)
Higher CCS rates
If you have more than one child aged 5 or under in care and your family earns less than $367,563 per year, you may receive a higher subsidy rate for your second and younger children.
Hours of activity per fortnight
The number of CCS hours you receive depends on how many hours of recognised activity you (and your partner, if applicable) complete each fortnight.
- Less than 8 hours of activity: 24 hours of subsidised care (only if your income is $85,279 or less; otherwise, 0 hours)
- 8 to 16 hours of activity: 36 hours of subsidised care
- 16 to 48 hours of activity: 72 hours of subsidised care
- More than 48 hours of activity: 100 hours of subsidised care
Importantly, First Nations families are guaranteed a minimum of 36 subsidised hours of care per fortnight and may qualify for more hours depending on individual circumstances.
How is the Child Care Subsidy calculated?
The Child Care Subsidy is calculated based on a combination of factors, including your family’s income, your CCS percentage, the number of hours you’re eligible for, and your child care provider’s fees.
Here’s a simple example to show how to calculate the Child Care Subsidy.
Example scenario:
- CCS percentage: 85%
- Subsidised hours per fortnight: 100
- Days in care each week: 2
- Daily fee: $150
- Session duration: 10 hours per day
- Hourly CCS rate cap (Centre Based Care): $14.63
- Withholding rate: 5%
Step 1: Work out the hourly fee
Start by calculating the hourly rate based on your provider’s daily fee.
$150 ÷ 10 hours = $15.00 per hour
Step 2: Compare with the hourly cap
The CCS is calculated on whichever is lower — your provider’s hourly fee or the government’s hourly rate cap.
Since the cap is $14.63 and your hourly fee is $15.00, the CCS will be based on $14.63 per hour.
Step 3: Calculate your hourly CCS amount
Apply your CCS percentage (85%) to the capped rate:
$14.63 × 85% = $12.43 per hour
Step 4: Calculate total weekly subsidy
The child attends two 10-hour sessions (20 hours total per week):
$12.43 × 20 hours = $248.60 per week
Step 5: Apply the withholding
To avoid overpayments, 5% of your CCS is withheld by the government:
$248.60 × 5% = $12.43 withheld
Step 6: Determine what’s paid to the provider
Subtract the withheld amount from your weekly subsidy:
$248.60 − $12.43 = $236.17 paid directly to the provider
Step 7: Calculate your weekly out-of-pocket cost
Minus the subsidised amount ($236.17) from the total weekly fee ($150 × 2 = $300) to determine your gap fee—what you’ll pay out of pocket.
$300 − $236.17 = $63.83 per week
This example shows how the Child Care Subsidy can reduce your weekly child care costs. Your actual subsidy may differ depending on your income, the number of children in care, your activity level, and the type of care used.
Want to estimate your Child Care Subsidy without the stress of number crunching?
Are there any exemptions to the activity test?
Yes. Some families can still receive the Child Care Subsidy (CCS) even if they don’t meet the usual activity test requirements.
You may be exempt from the activity test if you are:
- The main carer of your grandchild
- Unable to work due to a disability or medical condition
- Receiving a Carer Payment from Services Australia
There are also special provisions for some families:
- Aboriginal and Torres Strait Islander children may get up to 36 hours of subsidised care per fortnight, regardless of activity levels
- Low-income families may be eligible for 24 hours per fortnight, even if they don’t meet the activity test
You can update your activity details anytime through your myGov account. It’s a good idea to keep this up to date, especially if you’re getting fewer than 100 subsidised hours and have only reported your contracted work hours. You might be eligible for more.
When should I apply for the Child Care Subsidy?
It’s best to apply for the Child Care Subsidy well before your child’s start date, as claims can take up to 8 weeks to be processed by Services Australia.
If your child starts care before your claim is lodged or finalised, you’ll need to cover the full cost of care until the subsidy is approved.
However, if you’re eligible, CCS can be backdated up to 28 days from the date you submit your claim. Any backdated subsidy will be paid directly to you.
How do I apply?
To apply for the Child Care Subsidy, follow the steps below:
- Create a myGov account (if you don’t already have one) at my.gov.au
- Link Centrelink to your myGov account
- Ensure you have a Customer Reference Number (CRN) for both you and your child
- Log in to myGov and navigate to Services > Centrelink > Payments and Claims > Claims > Make a Claim
- Under Families, select “Get started” to begin your Child Care Subsidy application
- Complete all required sections and submit your claim
Once your claim has been submitted, Services Australia may take up to six weeks to assess and approve it.
Finally, after enrolling your child with your chosen child care provider, you’ll receive a prompt to sign your Complying Written Agreement. You’ll need to log in to myGov and confirm your enrolment details for Child Care Subsidy payments to begin.
What documents do I need to make a claim?
To claim the Child Care Subsidy through myGov, you’ll need to supply some important documents to help Services Australia assess your eligibility. These include:
- Proof of your children’s details – This can include birth certificates, adoption papers, or surrogacy agreements.
- Work documents – Such as recent payslips, PAYG summaries, tax returns, or a Notice of Assessment (NOA) if you’re self-employed.
- Study records – If you’re studying or have recently completed a course, you may need enrolment confirmations, academic transcripts, or receipts for course fees.
- Financial details – Be ready with your bank account information, tax file number, and evidence of income and assets (including any investments or superannuation).
- Housing and property documents – You may need to provide lease agreements, rates notices, or records showing property ownership.
- Relationship details – Including information about parents or guardians, partners (such as their work, income, or study details), or legal separation if applicable.
- Residency evidence – If you’ve lived outside of Australia, you might need to supply visa details or proof of residency status.
- Medical information – If your situation involves medical needs, you may need to upload doctor-issued medical certificates, Centrelink medical forms, or evidence of a Health Care Card claim.
Required items will appear as part of your claim, and in some cases, additional information might be requested later. If that happens, you’ll have 14 days to respond, or your claim may be paused or declined.
How are payments made?
CCS payments are paid directly to approved child care providers on behalf of eligible families. This reduces the upfront cost by lowering the amount you need to pay out of pocket.
At Juniors Journey, your subsidy is automatically applied to your fees, so you only pay the remaining amount, known as the gap fee.
This means you don’t need to worry about claiming the subsidy or waiting for reimbursements. Your CCS entitlement is simply reflected as a fee reduction, making your weekly child care costs easier to manage.
What if I have more than one child in need of care?
If you have more than one child aged 5 or under in approved child care, you may be eligible for a higher Child Care Subsidy (CCS) rate for your younger child/ren.
To receive the higher subsidy, you must meet these criteria:
- Have more than one child aged 5 or under attending an approved early learning service
- Have a combined family income under $367,563
- Ensure each child has their own CCS application lodged
Services Australia will assess all eligible children in your family to determine who qualifies for the standard rate and who receives the higher rate.
Can I claim the Child Care Subsidy for Juniors Journey?
Yes. Juniors Journey is approved for the Child Care Subsidy (CCS), so eligible families can access this subsidy at all of our centres.
If you’d like help with enrolling or understanding how to apply for the subsidy in NSW, please contact us. Our Centre Managers are here to guide you through the process.
Discover more about our childcare fees
As a CCS-approved childcare provider, Juniors Journey is committed to providing affordable, high-quality daycare and preschool programs with flexible fee options.
*The results provided are only estimates and may vary based on individual circumstances, changes to your entitlements, or adjustments to your child care provider’s daily fees.
