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.

When the subsidy commences in July 2018, the hourly rate caps will be:

Service Type Maximum hourly rate cap
Centre Based Day Care (Long Day Care and Occasional Care) $11.55
Family Day Care $10.70
Outside School Hours Care (Before, After, and Vacation care) $10.10

The hourly rate caps will be indexed by the Consumer Price Index (CPI) prior to implementation in July 2018.

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

The Government is not setting child care fees, nor is the Government requiring services to charge on an hourly basis. Services will still set their fees and parents will have to pay the gap between the subsidy and the actual fee. The hourly rate caps will 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 new package.