The Child Care Subsidy (CCS) is Australia’s premier government initiative to lessen child care costs for eligible families in 2025.
Paid directly to approved providers, CCS enables working, studying or volunteering parents to access quality care while managing expenses. Here’s the latest eligibility criteria, income thresholds, and step-by-step application guidance.
What Is the Child Care Subsidy?
The CCS reduces out-of-pocket fees by subsidizing part of approved child care costs. It applies to Centre‑Based Day Care, Family Day Care, Outside School Hours Care, and In‑Home Care, provided the service meets government approval
Eligibility Criteria
You must meet these core requirements:
- Child aged 13 or younger, not attending secondary school (exceptions apply)
- Use an approved child care service
- Be responsible for paying fees
- Meet Australian residency & immunisation standards
- Meet the activity test: work, study, volunteer or seek work, or qualify for minimum hours (36hrs fortnight)
How Much Subsidy You Can Get
The CCS amount depends on family income, number of children in care, and type of service (hourly cap).
Income & Standard CCS Rate
| Family Income (2025‑26) | Subsidy Rate |
|---|---|
| Up to $85,279 | 90% |
| $85,280 to below $535,279 | Decreases by 1% for each $5,000 over threshold |
| $535,279 or more | 0% |
Higher Rate for Second & Younger Children
If you have more than one child aged 5 or under in care (combined income below $367,563):
- First child gets the standard rate.
- Second and younger children get up to 95%, reducing by 1% per $3,000 income above thresholds
Hourly Rate Caps by Care Type
From 7 July 2025, capped hourly rates eligible for subsidy are:
- Centre‑Based Day Care: $14.63 (below school age) / $12.81 (school age)
- Outside School Hours Care: $14.63 / $12.81
- Family Day Care: $13.56
- In‑Home Care (per family): $39.80
Representative Examples
- A family earning $75,000 with one child receives 90% subsidy on eligible care hours
- A family earning $130,000 with one child gets about 80.66% subsidy
- A family with three children, income $400,000, gets ~26.66% each
Step-by-Step Application Process
- Create a myGov account.
- Link it to Centrelink using your Customer Reference Number (CRN)
- Go to “Make a claim” → Families → Apply for Family Assistance and select CCS.
- Provide required documents: proof of income (tax return/payslips), Tax File Number, child care provider details, immunisation records, residency proof.
- Submit and wait for assessment (typically takes a few weeks)
- Keep information updated: income, activity, number of children—notify Centrelink promptly to prevent overpayments
New claims can be backdated up to 28 days before the fortnight of the claim’s submission
What Changed from July 2025
- Income thresholds adjusted: from $83,280 → $85,279 maximum threshold
- Maximum family income limit raised: $535,279 (up from ~$533k)
- Hourly rate caps increased per care type
- Ongoing indexation via Consumer Price Index adjustments
- Three‑Day Guarantee coming January 2026: families earning ≤ $530,000 receive three days subsidised care weekly, regardless of activity test
Additional Child Care Subsidies (ACCS)
Families facing specific circumstances may receive extra help through ACCS, including:
- Temporary Financial Hardship
- Transition to Work support
- Grandparent carer subsidy
- Vulnerable or at‑risk child support
Understanding the Child Care Subsidy 2025 means knowing your eligibility, income tier, and how your family structure affects your subsidy rate.
With updated income thresholds, higher rate caps, and upcoming reforms like the Three‑Day Guarantee, Australian families have unprecedented support to access affordable child care. Applying via myGov & Centrelink, keeping details current, and exploring ACCS top‑ups can maximize your benefit.
Now’s the time to check your eligibility and ensure your claim is in place to reduce your child care costs throughout 2025 and beyond.
FAQs
Can families earning over $535,000 receive CCS?
No. Once combined family income reaches $535,279 or more, the standard subsidy rate drops to 0% .
Do I need to reapply each year?
No. CCS remains valid for 26 weeks of inactivity (no child care). If unused beyond that, you must reapply. Always report changes promptly .
What if I have two young children in care?
If both are aged 5 or under and your combined income is below $367,563, your younger child may receive a higher rate up to 95%, while the eldest gets standard CCS .