CCS Fact Sheet
Still scratching your head about how the Child Care Subsidy works? You’re not alone!
We've put together a simple overview to help you understand your eligibility, your entitlements, and how CCS is appliedto reduce your out-of-pocket costs.
Prefer to watch?
Check out our Child Care Subsidy explainer video on YouTube.
Want to go deeper?
You can also view the CCS Presentation Slides that accompany the video.
Background
The Child Care Subsidy provides families with financial assistance with the cost of childcare. The Child Care Subsidy reduce fees for families by up to 95%. There are also additional subsidies available for families experiencing temporary financial hardship and for children at risk.
Who can claim it
To receive the CCS at a long daycare service, you must meet a few conditions:
- Residency: Be an Australian citizen or hold an approved visa (e.g. permanent, partner, or temporary protection visa).
Immunisation: Your child must be up to date with their immunisations — this is also a requirement to attend long daycare in NSW.
Age: Your child must be under 6 and not enrolled in school (some exceptions apply for children on school breaks).
More details can be found here.
How your CCS is calculated
Your CCS entitlement depends on four key factors:
Your combined family income
How many children you have in care
Your activity level — including work, study, volunteering, and more
The type of care (long daycare, OSHC, etc.)
Remember: income is reconciled at the end of the financial year — if your income changes during the year, update Services Australia to avoid adjustments later.
Subsidy rates in 2025–26
For your eldest child:
Families earning up to $85,279 get a 90% subsidy
Then it drops by 1% for every $5,000 over that threshold
It cuts off entirely at $535,279
For second and subsequent children:
Families earning up to $143,273 get a 95% subsidy
Then it drops by ~1% per $3,000 over that amount
The minimum rate is 80% until income reaches $367,563, then it aligns with the standard rate
Good news: children don’t need to attend the same centre to be counted as second/subsequent.
How many hours am I entitled to?
This depends on your activity hours per fortnight:
- 8-16 hours of activity attracts 36 hours per fortnight of subsidised care
- 16-48 hours of activity attracts 72 hours per fortnight of subsidised care
- 48 hours of activity (or more) attracts 100 hours per fortnight of subsidised care
Some important exceptions to note:
- Families earning under $85,279 automatically get 24 hours per fortnight
- Aboriginal and Torres Strait Islander families receive 36 hours regardless of activity
- From 1 January 2026 all families will be entitled to at least 72 hours, regardless of activity level
Session lengths and hourly caps
We offer a range of session lengths tailored to your needs. However, if your session exceeds your CCS hours, you’ll pay the full hourly rate for any gap. So it’s important to check:
What session your child is enrolled in
What your subsidised hours actually cover
From July 2025-June 2026, the CCS hourly cap for long daycare will be $14.63.
Note: marking your child as “school-aged” on Services Australia can reduce your subsidy — check your enrolment info carefully.
How do I claim?
Hop onto your MyGov account, head to Centrelink and select the ‘Payment and Claims’ option. The Child Care Subsidy is under the ‘Families’ heading.
You’ll need to answer questions and supply documents in relation to your income, activity levels and residency status, amongst other things. Once your claim is submitted you can track it on My Gov.