Child Care Subsidy hourly rate caps are changing soon

The Child Care Subsidy (CCS) hourly rate caps and family income thresholds will go up from 7 July 2025. 

The hourly rate caps and income thresholds are adjusted annually based on the Consumer Price Index (CPI).  

The maximum hourly rate we subsidise is based on the type of care you provide. The 2025–26 hourly rate caps for each care type are outlined below.  

Care type  

Hourly rate cap for  

children below school age  

Hourly rate cap for  

school-age children  

Centre Based Day Care  $14.63  $12.81  
Outside School Hours Care  $14.63  $12.81  
Family Day Care  $13.56  $13.56  
In Home Care (per family)  $39.80  $39.80  

Learn more about hourly rate caps and see the rates for second and younger children on our website.  

The family income thresholds have also changed according to the CPI, as outlined below:  

Family income  Subsidy rate  
Up to $85,279  90%  
More than $85,279 to below $535,279  

Between 90% and 0% 

The percentage decreases by 1% for every $5,000 of income a family earns  

$535,279 or more  0%  

A family’s CCS subsidy rate is the percentage of the hourly rate the government will subsidise.  

Read more about how much CCS a family can get on our website.