Child Care Subsidy - Service type

The type of service a family chooses to use for child care is one of the three factors that will determine a family's level of Child Care Subsidy.

The maximum hourly rate the Government will subsidise is based on the type of child care service.

Hourly rate caps payable for children below school age and of school age, according to the type of child care service provided, for 2020–21
Service type Hourly rate cap (children below school age) Hourly rate cap (school-age children)
Centre Based Day Care $12.20 $10.67
Outside School Hours Care $12.20 $10.67
Family Day Care $11.30 $11.30
In Home Care $33.17 (per family) $33.17 (per family)

These caps place an upper limit on the amount of Child Care Subsidy the Australian Government will provide. The rate cap will be used, in combination with family's income and level of activity to calculate the amount of subsidy a family is entitled to receive.

Where a child care service charges less than the hourly rate cap, families will receive their applicable percentage of the actual rate charged. Where a service charges more than the relevant cap, families will receive their applicable percentage of the hourly rate cap.

The Government does not set child care fees, nor does the Government require services to charge on an hourly basis. Services set their fees and parents then pay the gap between the subsidised amount and the full fee. The hourly rate caps serve as a guide to services and families about what a 'high fee' might be.

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 understand the details of the Child Care Package.