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4 Child Care Subsidy

Child Care Subsidy is the main payment to assist families with the costs of child care. It is generally paid directly to providers to be passed on to families as a fee reduction.

Families make a co-contribution to their child care fees and pay the provider the difference between the fee charged and the subsidy amount.

There are three main aspects of Child Care Subsidy:

  1. An individual's eligibility for Child Care Subsidy
  2. Types of child care and sessions of care covered by Child Care Subsidy
  3. Amount of Child Care Subsidy payments (entitlement).

Each of these is described in more detail in the following sections.

While a provider or service is not directly involved in the calculation of a family's entitlements (this is a matter between the family and Centrelink) it is important that providers understand the rules relating to Child Care Subsidy so they can discuss with families the amount of fee reduction families will receive and the balance of the fee charged that families will need to pay to the provider.

Providers should encourage families to provide true and complete information to Centrelink for the purposes of claiming Child Care Subsidy. This is a legal requirement of families, and the provision of incorrect information may result in families incurring debts that need to be recovered at a later date.

Information for families

Families can access a range of more detailed information about their entitlements to Child Care Subsidy.

Families identify can which payments they may be entitled to receive, including the Child Care Subsidy, through the online Payment and Service Finder (www.centrelink.gov.au).