Child Care Subsidy - combined annual family income

Combined annual family income is one of the three factors that determines the amount of Child Care Subsidy a family is entitled to.

Under the Child Care Subsidy, the percentage of subsidy a family is entitled to is based on their combined annual income, with more financial support available to lower income families.

This table shows the percentage of child care fees or the relevant hourly rate cap (whichever is lower) the Government will contribute based on a family's combined income:

Combined family income^ Subsidy rate*
Up to $69,390 85%
More than $69,390  to below $174,390 Decreasing to 50%*
$174,390 to below $253,680 50%
$253,680 to below $343,680 Decreasing to 20%*
$343,680 to below $353,680 20%
Equal to or above $353,680  0%

^ These amounts are correct for 2020-21 (from 13 July 2020) and may be subject to adjustment through indexation in subsequent years.

*Subsidy gradually decreases by 1 per cent for each $3000 of family income.

Use the Child Care Subsidy Estimator to find out what your family may be entitled to.

Child Care Subsidy annual cap

Families earning $189,390 or less per year will not be subject to a cap on the amount of Child Care Subsidy they can access. Families earning over $189,390 and under $353,680 will still have an annual cap which will increase to $10,560 per year per child.

Other factors

The other two factors that will determine a family's level of Child Care Subsidy are:

Resources

A range of information resources are available to assist families and providers.