Child Care Subsidy: Save Thousands
What is the Child Care Subsidy?
The Child Care Subsidy (CCS) is a government payment that covers 50-90% of your childcare fees, potentially saving families $10,000-20,000+ per year. Childcare in Australia is expensive — long day care averages $120-170 per day in Sydney and $100-140 in other cities. Without the subsidy, many families simply couldn't afford it. The CCS is paid directly to your childcare provider, reducing your out-of-pocket costs.
How Much Do You Get?
| Family Income | Subsidy Rate | Estimated Annual Saving |
|---|---|---|
| Under $80,000 | 90% | $20,000+ |
| $80,000 - $174,999 | 85-50% | $10,000-20,000 |
| $175,000 - $352,453 | 50-20% | $5,000-12,000 |
| Over $352,453 | 20% (capped) | $4,000-6,000 |
Activity Test
The number of subsidised hours depends on your activity level (work, study, training, volunteering). Both parents must meet the activity test. Working or studying 8-16 hours per fortnight gives you up to 36 subsidised hours. Working 16-48 hours gives you up to 72 hours. Over 48 hours gives you up to 100 hours per fortnight. If one parent doesn't meet the activity test, the family gets a minimum 24 subsidised hours per fortnight.
Approved Care Types
- Long day care: Centre-based, typically 7am-6pm. Most popular option
- Family day care: Smaller groups in a registered carer's home
- Outside school hours care (OSHC): Before and after school, and vacation care
- In-home care: For families in rural areas or with special circumstances
- Occasional care: Casual sessions, no ongoing booking required
How to Apply
Apply through your Centrelink online account (linked via myGov). You need your child's birth certificate, both parents' TFNs, income estimates, and details of your approved childcare provider. The provider will confirm your child's enrolment. Processing takes 1-2 weeks. Once approved, the subsidy is applied automatically to your childcare invoices — you only pay the gap.
Tips for Chinese Families
Grandparents caring for children are NOT eligible for CCS — it must be an approved provider. If grandparents come to Australia on an 870 visa specifically to help with childcare, that's fine but CCS still only applies to approved centres. Some Chinese-language childcare centres exist in areas with large Chinese communities (Hurstville, Eastwood, Box Hill). Starting childcare early helps children with English language development before school.