Why the Child Care Subsidy is so important
The Child Care Subsidy was introduced to make early learning and care more accessible for Australian families.
At its heart, this subsidy exists to ensure every child can learn, grow, and thrive in a supportive early education environment, no matter their family’s circumstances. That way, all children can develop vital social, emotional, and cognitive skills from a young age.
It’s also designed to ease financial pressure on parents and carers, helping them balance work, study, and family life with greater flexibility.
Before the Child Care Subsidy, families received a range of separate payments, including the Child Care Benefit, Child Care Rebate, and Jobs, Education and Training (JET) Fee Assistance.
This subsidy replaced these with a single, streamlined payment — making the process simpler, fairer, and easier to manage.
Ultimately, the Child Care Subsidy is an investment in Australia’s future. By helping families afford early learning, it builds stronger foundations for children and empowers parents to participate more fully in their communities and careers.
How does subsidised daycare and preschool work?
This subsidy works by reducing your weekly childcare costs. It’s calculated individually for each child based on your family’s unique circumstances. In most cases, younger children receive a higher subsidy rate, helping to make care more affordable for growing families.
Importantly, Child Care Subsidy payments can only start once your claim has been approved by Services Australia and your child’s enrolment has been confirmed. To ensure your subsidy is applied correctly, you’ll need to provide your childcare service with:
- Your Customer Reference Number (CRN) and date of birth
- Your child’s CRN and date of birth
Once everything is approved, the subsidy is paid directly to your childcare provider by the government and automatically applied to your account as a fee reduction.
For instance, at Junior’s Journey, your CCS is seamlessly built into your childcare costs, so you never need to worry about claiming reimbursements or waiting for payments.
You’ll only pay the remaining out-of-pocket “gap” fee, which is the difference between your total fees and your subsidy amount. This makes your weekly daycare and preschool costs easier to manage.
Who is eligible for the Child Care Subsidy?
To qualify for the Child Care Subsidy, you’ll need to meet certain eligibility criteria set by Services Australia. Firstly, you must:
- Be an Australian citizen, permanent resident, or hold an approved visa
- Have a combined family income under $535,279 per year
- Care for your child at least two nights per fortnight (around 14% of the time or more)
- Be responsible for paying the childcare fees at an approved service
Additionally, your child needs to:
- Be 13 years old or younger, and not attending secondary school (unless approved under special circumstances)
- Be up to date with immunisations, or have a valid exemption
- Attend an approved childcare service
If you don’t meet all the standard Child Care subsidy eligibility criteria, you may still qualify for up to 36 hours of subsidised care per fortnight if your child is:
- Aboriginal or Torres Strait Islander, or
- Enrolled in a funded preschool or kindergarten program, including those offered within a long daycare setting
Ultimately, this subsidy is designed to make early learning more accessible for all families, giving every child the best possible start in life — no matter their background or situation.
How much is the Child Care Subsidy?
The exact amount of financial support you receive under the Child Care Subsidy depends on your family’s unique circumstances.
Services Australia calculates your subsidy based on several key factors:
1. Your family’s combined income
The higher your household income, the lower your subsidy rate. Families earning under $85,279 may receive up to 90% of their childcare fees covered, while families on higher incomes receive a smaller percentage.
2. Your activity level
The Activity Test helps determine how many hours of subsidised childcare your family can access each fortnight. It’s based on how many hours you and your partner spend on recognised activities like work, study, training, or volunteering. The more activity hours you have, the more subsidised hours you’ll receive.
Here’s a quick breakdown:
- 8–16 hours of recognised activity → up to 36 hours of subsidised care per fortnight
- 16–48 hours → up to 72 hours
- 48 hours or more → up to 100 hours
Importantly, the parent with the lower activity hours is used to work out your family’s entitlement.
3. Your hourly childcare fees
The government sets an hourly rate cap for each type of childcare service. If your provider charges more than this cap, you’ll pay the difference out of pocket. Your Child Care Subsidy is calculated based on whichever is lower — your provider’s hourly fee or the government’s cap.
4. The number of children in care
Families with multiple children aged 5 or under may qualify for a higher subsidy rate for their second and younger children.
Try our easy Child Care subsidy calculator
Every family’s situation is different, which is why the subsidy amount can vary. To get a clearer idea of your entitlements, use our free online Child Care Subsidy calculator.
The 3-Day Guarantee
From January 2026, the Australian Government will introduce the 3-Day Guarantee to make early childhood education and care more accessible for all families.
Under this new guarantee, eligible families will be entitled to at least 72 hours of subsidised childcare per fortnight — the equivalent of three days per week in most early learning settings — without needing to meet the Activity Test.
Here’s what’s changing:
- More hours for families already receiving CCS: Families who currently receive 24 or 36 hours of subsidised care per fortnight may now be eligible for up to 72 hours, offering more days of care and greater support for work, study, or family commitments.
- Support for families who don’t meet the Activity Test: If your household income is above $85,279 and you currently receive zero subsidised hours because you don’t meet the Activity Test (for example, if you’re a stay-at-home parent), you’ll now be able to access a minimum of 72 subsidised hours of early learning care per fortnight.
- A stronger boost for First Nations families: Families caring for First Nations children will be eligible for up to 100 subsidised hours per fortnight, helping make early education more inclusive, consistent, and culturally supportive.
This change recognises that early education isn’t just about childcare. It’s about giving every child the best start in life.
By ensuring all families can access at least three days of care each week, the government is helping to support early learning and social development while easing financial pressure on families.
When the Additional Child Care Subsidy applies
The Additional Child Care Subsidy (ACCS) provides extra financial support for families who are already receiving the Child Care Subsidy but need more help with the cost of early learning and care.
This includes:
- Grandparents who are the primary carers of their grandchildren, and are receiving an income support payment.
- Parents or primary caregivers who are transitioning back to work after receiving an eligible income support payment.
- Parents or primary caregivers who are experiencing temporary financial hardship, such as after a natural disaster or sudden loss of income.
- Parents or primary caregivers who are caring for a vulnerable child at risk of harm, abuse, or neglect.
Depending on your situation, the ACCS can:
- Cover up to 100% of childcare fees (based on the hourly rate cap).
- Provide up to 100 hours of subsidised care per fortnight, helping children stay connected to consistent learning and support.
- Offer short-term relief during tough times, while longer-term solutions or stability are established.
You can apply for the Additional Child Care Subsidy through your myGov account, linked to Centrelink. You’ll need to provide information about your circumstances to help Services Australia determine your eligibility.
If you think you might qualify, speak with your childcare provider. We can guide you through the process and help you provide the right supporting documents.
FAQs
When should I apply for the Child Care Subsidy?
It’s a good idea to apply for the Child Care Subsidy (CCS) as early as you can, ideally before your child’s first day at care. Processing can take up to eight weeks, so getting started early helps make sure everything’s in place when you need it.
If your child begins care before your claim is approved, you’ll need to pay the full amount for now. However, if you’re eligible, CCS can be backdated up to 28 days from the day you submit your claim, meaning you may be reimbursed later.
Applying ahead of time helps take the stress out of the transition and ensures your family’s support starts right from day one.
How do I apply for the Child Care Subsidy?
Applying for the Child Care Subsidy is a simple online process:
- Create a myGov account and link it to Centrelink.
- Confirm your identity through your Centrelink online account.
- Submit your claim by logging in to myGov, selecting Centrelink, and completing the CCS claim form.
You’ll need to provide details like your family income, activity hours, and service provider information. Once submitted, Services Australia will assess your eligibility and notify you through your myGov inbox.
For step-by-step guidance, visit our guide on how to apply for subsidised daycare.
Where can I find my and my child’s CRN?
Your CRN helps Centrelink and Services Australia identify you and your child for payments and services. You can usually find your CRN on:
- Letters or messages sent to you by Services Australia (including in your myGov inbox)
- Your Health Care Card or Concession Card, if you have one
If you’ve never received a payment before, you can easily get a CRN online through myGov, or by visiting a Service Centre with photo ID.
Your child will also have their own CRN if they receive CCS, Family Tax Benefit, or Parental Leave Pay. You can find it in your Centrelink online account via myGov, under your child’s details.
I have multiple children attending childcare. How does this affect CCS payments?
If you have more than one child aged five or under in approved childcare, you may receive a higher subsidy rate for your younger children.
This helps make care more affordable for families with multiple little ones in care at the same time. The higher rate is worked out automatically based on your income and doesn’t require a separate claim.
To make sure you’re getting the right amount, keep your family income and enrolment details up to date through your Centrelink account.
Can I use the Child Care Subsidy for multiple childcare providers?
Yes. You can use your Child Care Subsidy across more than one approved childcare provider.
Each centre will set up a Complying Written Arrangement (CWA) for you to review and approve. This confirms your child’s enrolment, days of attendance, and fees.
Keep in mind that your subsidised hours apply across all services combined, not per centre.
Reviewing your arrangements regularly helps ensure you’re getting the most out of your CCS and avoiding any surprises in your fees.
Is before and after school care subsidised?
Yes. Before-school care, after-school care, and vacation care can all be covered under the Child Care Subsidy if the service is approved by Services Australia.
Your subsidy rate for these programs is calculated in the same way as long daycare, based on your family income, activity level, and the hourly fee cap.
If you’re unsure whether your service is approved, check with your provider or visit the Services Australia website.
What happens if my circumstances change?
Life is full of changes. When this happens, it’s important to update your details with Centrelink as soon as possible.
Changes to your work hours, income, relationship status, or family situation can all affect your Child Care Subsidy. Keeping your information current helps ensure you’re getting the right amount and prevents overpayments you might need to repay later.
You can make updates anytime through your Centrelink online account via myGov. A few minutes now can save a lot of confusion down the track.
Will CCS payments be affected if we go on holiday abroad?
You can still receive the Child Care Subsidy while taking a holiday, but there are a few things to keep in mind.
Each child is allowed up to 42 days of absences per financial year — and that includes public holidays and time away overseas. If your child is absent for longer than that, you may need to pay full fees unless special circumstances apply.
Before travelling, let both your childcare provider and Centrelink know about your plans. This helps keep your child’s enrolment active so your payments can continue without interruption.
Discover subsidised early childhood education and care with Juniors Journey
By easing costs, the Child Care Subsidy helps parents and carers focus on what matters most: supporting their little one’s growth, development, and happiness.
Juniors Journey is an approved Child Care Subsidy provider, meaning eligible families can enjoy the benefits of subsidised daycare at our centres in Gateshead, Mildura, and Eglinton.
Whether you’re navigating your application or want to understand how it works for your family, our friendly Centre Managers are here to help every step of the way.
Give your child the best start in a warm, nurturing environment designed to inspire confidence, curiosity, and connection. Get in touch to enrol your child or book a tour.
