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Childcare can be a considerable expense for Australian families. The Australian Government offers financial support through initiatives such as the Child Care Subsidy (CCS) to help reduce the cost of approved care.
What is the Child Care Subsidy (CCS)?
The Child Care Subsidy (CCS) is a financial assistance program provided by the Australian Government to help families with the cost of approved childcare. The subsidy is paid directly to childcare providers, reducing the out-of-pocket fees that families pay. The amount you receive depends on factors such as your family’s income, the type of care, and your level of activity (e.g., work, study).
Families enrolled at Montessori Academy can access this subsidy, as our childcare centres are approved providers. Try our child care subsidy calculator to get an estimate of what you might potentially receive.
Child Care Subsidy Eligibility
Understanding child care subsidy eligibility is the first step in determining whether you may qualify for support with childcare costs in 2025. To be eligible for CCS in 2025, you must meet the following criteria:
- You must care for a child aged 13 or under who is not attending secondary school (unless an exemption applies).
- You must use an approved childcare service.
- You must be responsible for paying childcare fees.
- You must meet residency and immunisation requirements.
- You must satisfy the activity test requirements (e.g., working, studying, or volunteering).
How To Apply For The Child Care Subsidy
Knowing how to apply for childcare subsidy can help you navigate the process of seeking support with childcare costs. Here’s a quick step-by-step overview of the CCS application process:
- Sign in to your myGov account and link it to Centrelink.
- Complete the Child Care Subsidy assessment, providing details about your family’s income and activity levels.
- Submit the required documents and wait for the assessment outcome.
Child Care Subsidy Changes in 2025
The government’s CCS changes introduced in July 2023 remain in place for 2025. From 7 July 2025, CCS hourly rate caps and family income thresholds will also increase.
- Families earning less than $85,279 can receive a subsidy of up to 90%.
- Subsidy rates gradually decrease for families earning up to $535,279.
- Families with more than one child aged under 5 in care may qualify for a higher subsidy.
- Additional support is available for Aboriginal and Torres Strait Islander children through the Inclusion Support Program.
For the latest thresholds and rates, visit the Child Care Subsidy information page on Services Australia.
CCS Hourly Rate Cap 2025
Your CCS entitlement depends on several key factors:
- Family Income: The CCS percentage you receive is based on your total combined family income. The CCS threshold 2025 outlines income brackets that determine your subsidy rate. Families earning under the threshold may receive a higher percentage of the subsidy.
- Activity Level: The number of hours you and your partner participate in recognised activities—such as work, study, or volunteering—may affect how many hours of care are subsidised each fortnight.
- Type of Care: Different childcare services, such as centre-based day care, family day care, or outside school hours care, have unique hourly rate caps set by the Government. These caps impact the maximum amount of subsidy you can receive per hour.
- Number of Children: If you have more than one child under five years old, you may be eligible for a higher subsidy for the second and subsequent children. This is part of ongoing CCS changes in 2025 aimed at easing the financial burden for larger families.
To get a clearer understanding of your potential benefits, use our Child Care Subsidy Calculator for a personalised estimate.
3-Day Childcare Subsidy Guarantee for Australian Families in 2026
From January 2026, all families in Australia will be eligible for at least 3 days (72 hours) of subsidised early childhood education and care (ECEC) per fortnight, regardless of their activity levels. This means more affordable childcare and preschool access for thousands of families, supporting both early learning and cost-of-living relief.
Families currently eligible for more hours (due to work or exemptions) will continue receiving those benefits. First Nations families will remain eligible for up to 100 subsidised hours per fortnight.
This change will especially support families who previously received fewer hours due to work or study activity requirements.
Example Savings for Families
Here’s how much families could save each week and annually with the new 3-Day Childcare Guarantee, based on average childcare fees:
| Annual Income | Better Off Per week | Annual Savings (50 weeks) |
| $90,000 | $230 | $11,400 |
| $120,000 | $220 | $10,630 |
| $140,000 | $200 | $10,110 |
These savings are based on a child attending 3 days (36 hours) of childcare per week at a provider charging the average Centre-Based Day Care hourly rate.
Please note: The 3-Day Guarantee may not be available at all childcare providers. Providers must meet specific eligibility criteria to participate, and not all may choose to opt in.
We’re excited about what the 3-Day Guarantee could mean for eligible families. As more details become available, we’ll continue to update this page to help families understand how they can benefit.
CCS and Absent Days
The CCS covers up to 42 absence days per child, per financial year without the need for evidence. These can include public holidays if they fall on a day your child is usually scheduled to attend.
Once the 42 allowable absences are used, additional absences may still be covered, but only under certain circumstances—such as illness (with a medical certificate) or if your childcare service is closed on a day your child would normally attend.
Important: Public holidays are not considered a reason for additional absences. If your child has already used their 42 days, CCS will not cover any public holiday absences beyond that limit.
Things to Keep in Mind
- Changes in Circumstances: It’s essential to report any changes in your family situation, income, or childcare requirements to Centrelink as soon as possible. Failure to update your details could result in overpayments or underpayments.
- Paid Parental Leave: If you’re on paid parental leave, you may still be eligible for the Child Care Subsidy for childcare services you use during this period.
- Annual Cap: There is a cap on how much subsidy your family can receive per year. This cap is higher for families with lower incomes and may change over time.
Why Is CCS Important
Childcare costs in Australia can be significant, making it challenging for some families to afford the care their children need. The CCS helps ease this financial burden, allowing families to access quality care while supporting parents’ work, study, or volunteering activities. It also contributes to the development and wellbeing of children by providing access to early childhood education and care, which is essential for their growth and future success.
Support for Families
Our team at Montessori Academy is here to support you. If you’re unsure about your eligibility or how to claim CCS, speak with our Enrolments Team. We’ll guide you through the process to ensure your entitlements are applied correctly.
Understanding the Child Care Subsidy can significantly reduce your childcare expenses and make early education more accessible. At Montessori Academy, we’re committed to helping families navigate the childcare enrolment process. If you have any questions about how to claim CCS benefits in our long daycare centres, feel free to contact us.
This page was last updated on May 2025. Any changes to the Child Care Subsidy after this date may not be reflected. Please refer to the Services Australia’s website for the latest updates for travel outside Australia.
More Information
Childcare costs in Australia can be significant, making it challenging for some families to afford the care their children need. The subsidy helps ease this financial burden, allowing families to access quality care while supporting parents’ work, study, or volunteering activities. It also contributes to the development and wellbeing of children by providing access to early childhood education and care, which is essential for their growth and future success.
Support for Families
Don’t forget to check out the Child Care Subsidy Estimator to get an idea of how much you might receive. If you have any questions, please contact us.
Further Information
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