Child Care Subsidy

The Child Care Subsidy is the main way the Government assists families with their child care fees.

There are three factors that determine a family’s level of Child Care Subsidy.

These are:

The Child Care Subsidy is generally paid directly to service providers to be passed on to families as a fee reduction. Families make a co-contribution to their child care fees and pay to the provider the difference between the fee charged and the subsidy amount.

Click here to use our child care subsidy estimator.

All this information and more can be found on the Department of Education, Skills & Employment Website.

Key Facts about the Child Care Subsidy

  • Families earning $80,000 or less receive a subsidy of 90% of their child care fees (up to the rate cap of $13.73 per hour).
  • For families earning over $80,000 to under $530,000, the subsidy gradually tapers down by 1% less for every $5000.
  • Families on income $530,000 or more will receive no subsidy.
  • Families earning below $362,408 with more than one child aged 5 or under in care can still get a higher rate for one or more of their children.
  • Less than 8 hours. 0 hours if you earn above $80,000, 24 hours if you earn $80,000 or below.
  • More than 8 to 16 hours, 36 hours.
  • More than 16 to 48 hours, 72 hours.
  • More than 48 hours, 100 hours.
  • Aboriginal and/or Torres Strait Islander children can get at least 36 subsidised hours of early childhood education and care per fortnight, regardless of their family’s activity level.
  • In two parent families, both parents must engage in recognised activity for at least 8 hours a fortnight to receive the subsidy (unless exempt).
  • Recognised activities include but are not limited to: paid work (including leave), approved study or training, actively seeking work, volunteering and self-employment.
  • An hourly rate cap of $13.73 per hour subsidy applies for centre-based care which the Government will use when determining your level of subsidy. However, your child care service may charge above or below this amount. The Government will use the lower amount to calculate any subsidy entitlement.  
  • In most cases, the subsidy will be paid directly to child care providers, in which case you only pay the difference between the fee charged by your service and the amount subsidised by the Government.
  • 5 per cent of your weekly Child Care Subsidy entitlement will be withheld by the government. Following reconciliation of your tax return at the end of the financial year, any amount owing to you will be paid as a lump sum by the government. If you have been paid too much Child Care Subsidy, you will have a debt to repay.
  • Additional Child Care Subsidy (ACCS) provides a higher level of subsidy than the regular Child Care Subsidy, in recognition of the circumstances the child and/or family is facing. You need to meet extra criteria to be eligible for Additional Child Care Subsidy.
  • This information is current as of 10th of July, 2023.