The Child Care Subsidy (CCS) is the Australian Government's main tool for making childcare more affordable for families. Most families with children in approved childcare are eligible for some level of subsidy — but the system has several moving parts that can be confusing. This guide breaks it down in plain English.
How the CCS works
The CCS is paid directly to your childcare provider, who then passes the saving on to you as a reduced gap fee. The amount you receive depends on three factors: your combined family income, the type of childcare you use, and the number of hours of subsidised care you're entitled to.
How much will I receive?
The subsidy percentage is income-tested. As a general guide:
- Families earning under $80,000: up to 90% subsidy
- Families earning $80,000–$530,000: subsidy tapers from 90% down to 0%
- Families earning over $530,000: not eligible for CCS
- Families with multiple children in care: higher subsidy rates may apply for second and subsequent children
Use the Services Australia CCS estimator at servicesaustralia.gov.au to get a personalised estimate of your entitlement. It takes about 5 minutes and gives you a clear picture of your likely out-of-pocket costs.
Activity test
The number of subsidised hours you can access is linked to an 'activity test' — the number of hours per fortnight you and your partner spend working, studying, volunteering, or looking for work. Families who don't meet the activity test minimum may still access 24 hours of subsidised care per fortnight.
How to apply
- Create or log in to your myGov account
- Link your Centrelink account
- Apply for CCS through your Centrelink online account
- Confirm your enrolment with your childcare provider
- The subsidy will begin flowing automatically once your application is approved
Funded Kinder in Victoria
In addition to the CCS, Victorian families are entitled to 15 hours per week of funded 4-year-old Kinder. At Jenny's ELC, these funded hours are delivered within our integrated long day care program — meaning your child receives their full kinder entitlement without needing a separate kinder enrolment or drop-off.