Families must meet eligibility criteria to get Child Care Subsidy (CCS). The amount of CCS a family can get depends on their circumstances.
On this page:
From 10 July 2023, CCS is changing. This page outlines what’s changing for providers and services that administer CCS. Families can use the CCS Calculator at StartingBlocks.gov.au to find out what their future rates may be.
Who can get CCS?
Families must meet eligibility criteria to get CCS.
Parents must:
- care for their child at least 2 nights per fortnight or have 14% share of care
- be liable for child care fees at an approved child care service
- meet residency requirements.
Their child must:
- meet immunisation requirements
- not be attending secondary school (unless an exemption applies)
- be 13 or under (except in certain circumstances).
If a child doesn’t attend a session of care at least once in 26 consecutive weeks, they will stop being eligible for CCS. If a child starts to attend care again, a family can make a new claim for CCS.
Families can learn more about eligibility for CCS on the Services Australia website.
Some families previously not eligible for CCS will soon become eligible.
Families that earn between $356,756 and $530,000 may be entitled to CCS from 10 July 2023. Families that haven’t claimed CCS before should make a claim through myGov or the Centrelink App.
Some families already using care may currently be assessed for CCS and get 0% but will be eligible for an increased rate once the CCS changes go live from 10 July 2023.
These families should check that their income estimate is up to date. They can check this through myGov, the Centrelink app or the new myGov app.
How much CCS can a family get?
The amount of CCS a family can get depends on their circumstances.
Family income
Services Australia works out a family’s CCS percentage based on their family income estimate.
The CCS percentage is the amount they’ll subsidise. It will apply to the hourly fee or the relevant hourly rate cap, whichever is lower.
Families can learn more about how their income affects CCS on the Services Australia website.
The family income limit to get CCS is increasing to $530,000. The maximum amount of CCS is increasing from 85% to 90%.
We outline the current CCS rates and how they will change from 10 July 2023 below.
Families can use the CCS Calculator at StartingBlocks.gov.au to find out what their future CCS rates may be.
Families already getting CCS don’t need to do anything to get the new rates. Services Australia will apply the changes automatically.
Current CCS rates
| Family income | Subsidy rate |
|---|---|
| Up to $72,466 | 85% |
| More than $72,466 to below $177,466 |
Decreasing to 50% |
| $177,466 to below $256,756 | 50% |
| $256,756 to below $346,756 | Decreasing to 20% Subsidy gradually decreases by 1% for each $3000 of family income. |
| $346,756 to below $356,756 | 20% |
| $356,756 or more | 0% |
CCS rates from 10 July 2023
| Family income | Subsidy rate |
|---|---|
| $0 to $80,000 | 90% |
| More than $80,000 to below $530,000 |
Decreasing from 90% The percentage decreases by 1% for every $5,000 of income a family earns |
| $530,000 or more | 0% |
Number of children in care
Families with more than one child aged 5 or under in care can get a higher subsidy for their second child and younger children.
They currently get an extra 30% on top of their income tested rate for eligible children, up to a maximum of 95%.
In Home Care (IHC) sessions do not attract the higher subsidy. This is because IHC is subsidised per family, rather than per child.
Children who are entitled to both the higher subsidy and Additional Child Care Subsidy (ACCS) will be paid the ACCS rate.
Families can learn more about how the number of children in care affects CCS on the Services Australia website.
From 10 July 2023, the rates for each child are worked out using two separate income tests.
The ‘standard rate child’ is usually the eldest CCS eligible child aged 5 or under. From 10 July 2023, the standard rate child will get the standard CCS rates.
The ‘higher rate child’ is the second and any younger children aged 5 or under. The higher rate for second and younger children is calculated using the for second and younger children.
The higher subsidy for second and younger children will end when a family earns $362,408 or more.
Rates for second and younger children from 10 July 2023
| Family income | Second and younger children subsidy rate |
|---|---|
| $0 to $138,118 | 95% |
| More than $138,118 to below $183,118 |
Decreasing from 95% The percentage decreases by 1% for every $3,000 of income a family earns |
| $183,118 to below $262,408 | 80% |
| $262,408 to below $352,408 |
Decreasing from 80% The percentage decreases by 1% for every $3,000 of income a family earns |
| $352,408 to below $362,408 | 50% |
| $362,408 or more | Higher CCS rates no longer apply, all children in the family will receive the standard CCS rate |
Activity level
From 10 July 2023, there are changes to the activity test for families with Aboriginal and/or Torres Strait Islander children. Learn about the changes.
The hours of subsidised care a family can get each fortnight depends on their activity level. The higher the level of activity, the more hours of subsidised care families can get.
Services Australia looks at both parents’ activity level. They use the parent with the lower activity level to determine a family’s hours of subsidised care.
Families need to do a recognised activity to get CCS. Exemptions apply for parents who cannot meet activity test requirements.
The 4 activity levels are outlined below.
Families can learn more about how their activity level affects CCS on the Services Australia website.
| Hours of activity each fortnight | Hours of subsidised care, per child, each fortnight |
|---|---|
| Less than 8 hours | 0 hours if you earn above $72,466 24 hours if you earn $72,466 or below |
| 8 hours to 16 hours | 36 hours |
| More than 16 hours to 48 hours | 72 hours |
| More than 48 hours | 100 hours |
Care type
The amount of CCS a family can get depends on the type of care they use.
A family’s CCS percentage will apply to the lowest of either:
-
the child care hourly rate cap
-
the hourly fee you charge at your service.
The Australian Government does not set child care fees or require services to charge on an hourly basis. The child care hourly rate caps are a guide for services and families about what a ‘high fee’ might be.
Families can learn more about how the type of care they use affects CCS on the Services Australia website.
2022-23 hourly rate caps
| Service type | Hourly rate cap (children below school age) | Hourly rate cap (school-age children) |
|---|---|---|
| Centre Based Day Care | $12.74 | $11.15 |
| Outside School Hours Care | $12.74 | $11.15 |
| Family day Care | $11.80 | $11.80 |
| In Home Care (per family) | $34.64 | $34.64 |
More information
Families can get more information about CCS on the Services Australia website.
Families can use the CCS Calculator at StartingBlocks.gov.au to find out what their CCS rates may be.