Who Qualifies for Childcare Subsidies in Australia?
- Written by: Times Media
Childcare in Australia can be expensive, especially for working families trying to balance employment and family responsibilities. To help ease the financial burden, the Australian Government provides the Child Care Subsidy (CCS) — a payment designed to make early childhood education and care more affordable. But who actually qualifies for this subsidy, and how much can families expect to receive? Here’s a detailed look at the eligibility criteria, income thresholds, activity requirements, and other key factors that determine access to childcare assistance.
1. What Is the Child Care Subsidy?
The Child Care Subsidy is a federal government program that helps families with the cost of approved childcare. The payment goes directly to the childcare provider, reducing the fees parents pay out of pocket. It covers a range of care types, including:
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Long day care
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Family day care
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Outside school hours care (before and after school care)
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Occasional care
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In-home care (in limited cases)
The CCS replaced the previous Child Care Benefit and Child Care Rebate systems in 2018, simplifying payments into a single, income- and activity-based subsidy.
2. Basic Eligibility Criteria
To qualify for the Child Care Subsidy, families must meet several general conditions. You may be eligible if:
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You or your partner care for the child at least two nights per fortnight or have at least 14% care.
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You are responsible for paying childcare fees at an approved service.
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Your child is 12 years old or younger and meets immunisation requirements.
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You are an Australian citizen, permanent resident, or hold an eligible visa.
In addition, the childcare service must be approved by the Australian Government — meaning informal care arrangements, like paying a neighbour or grandparent, don’t qualify.
3. The Income Test
The amount of CCS a family receives depends largely on combined annual family income. The subsidy percentage decreases as income increases, based on the following approximate tiers (as of 2025):
| Family Income | Subsidy Rate |
|---|---|
| Up to $80,000 | 90% of fees covered |
| $80,000 – $530,000 | Gradually tapers down to 0% |
| Above $530,000 | No subsidy |
For families earning under $80,000, the government covers up to 90% of the childcare costs per child, up to a capped hourly rate. As income rises, the subsidy percentage decreases by 1% for every $5,000 earned beyond $80,000 until it phases out completely.
There’s also a maximum hourly rate cap set by the government, depending on the type of care. For example:
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Long day care: around $13.73 per hour
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Family day care: around $12.80 per hour
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Outside school hours care: around $12.02 per hour
If your childcare provider charges above these rates, you’ll need to pay the difference yourself.
4. The Activity Test
The subsidy amount also depends on the amount of work or recognised activity you and your partner undertake each fortnight. The more activity hours you complete, the more subsidised hours of childcare you can access.
Recognised activities include:
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Paid work (including self-employment)
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Study and training
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Unpaid work in a family business
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Volunteering
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Actively looking for work
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Paid or unpaid parental leave
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Undertaking work-related training
Here’s how the activity test generally works:
| Hours of Activity per Fortnight | Subsidised Hours of Care per Fortnight |
|---|---|
| Less than 8 hours | 0 hours (some exemptions apply) |
| 8 – 16 hours | Up to 36 hours |
| 17 – 48 hours | Up to 72 hours |
| 49+ hours | Up to 100 hours |
