As a parent or guardian in Australia, the Centrelink Child Care Subsidy (CCS) for 2025 is a vital support mechanism designed to ease the financial burden of child care. With the increasing cost of living, many families are balancing work, study, job-seeking, volunteering, or other approved activities.
The CCS serves not only as financial aid but also as a resource to ensure access to quality early education, helping parents manage both work and family responsibilities.
This guide explores all the essential details about the Centrelink Child Care Subsidy, including eligibility, payment rates, application processes, and upcoming changes for 2025 and beyond.
What is the Centrelink Child Care Subsidy?
The Child Care Subsidy (CCS) is a government-funded payment made directly to approved child care providers on behalf of eligible families.
This subsidy aims to make child care more affordable for parents and guardians, reducing out-of-pocket child care expenses. It covers services such as long day care, family day care, outside school hours care, vacation care, and occasional care.
Over time, the CCS system has evolved to ensure a fair distribution of financial support based on family income, activity levels, and the number of children in care.
In 2025, the CCS continues to be a vital part of the Australian Government’s efforts to support working families and single parents.
Key Features of the Centrelink Child Care Subsidy 2025
| Feature | Details |
|---|---|
| Eligibility Age | Children aged 13 or under, not attending secondary school (exceptions apply). |
| Income Threshold | Families with up to $533,280 in annual income are eligible for some CCS. |
| Maximum Subsidy | Covers up to 90% of approved child care fees for eligible families. |
| Activity Test | Determines hours of subsidised care, to be eliminated in 2026. |
| Upcoming Changes | Starting January 2026, the activity test will be scrapped, and a 3-day (72-hour) care guarantee will be introduced. |
| Application Process | Accessible through myGov and Centrelink online portals. |
| Rate Calculator | Use the Services Australia CCS Calculator for personalized estimates. |
Who is Eligible for the CCS in 2025?
To qualify for the Centrelink Child Care Subsidy in 2025, the following conditions must be met:
- You must be responsible for the care of a child aged 13 or younger, who is not enrolled in secondary school (exceptions apply for children with disabilities).
- The child must attend an approved child care provider registered with the Australian Government.
- You must be responsible for paying the child care fees.
- You must meet Australian residency requirements (e.g., citizens, permanent residents, or certain visa holders).
- Your child must meet national immunisation requirements.
Example:
Sarah, a single mother of two young children aged 3 and 6, works 20 hours a week. She uses an approved long day care centre for her younger child and outside school hours care for her eldest. As Sarah meets the income, activity, and immunisation criteria, she qualifies for the CCS.
How Much Can You Get? CCS Payment Rates
Your CCS entitlement depends on several key factors:
1. Family Income
The subsidy percentage is based on annual family income:
| Annual Family Income | Subsidy Percentage |
|---|---|
| Up to $83,280 | 90% of child care fees covered |
| $83,281 to $533,279 | Subsidy gradually decreases by 1% per $5,000 increase |
| Over $533,280 | Not eligible for CCS |
Families with multiple children under 5 may receive a higher subsidy for younger siblings to support continued access to early education.
2. Activity Test
The Activity Test determines the number of hours of subsidised care a family is entitled to. Approved activities include:
- Paid work
- Job searching
- Study or training
- Volunteering
- Parental leave (paid or unpaid)
| Activity Hours per Fortnight | Subsidised Care Hours |
|---|---|
| Less than 8 hours | 0 or 24 hours (based on income) |
| 8 to 16 hours | 36 hours |
| 16 to 48 hours | 72 hours |
| Over 48 hours | 100 hours |
From 2026, the activity test will be eliminated, allowing all eligible families to access 72 hours of care per fortnight, regardless of their activity status.
3. Hourly Rate Cap
The hourly rate cap sets a maximum amount the government will subsidise. If the child care provider charges more than the cap, the family must cover the difference.
- Centre-based day care: approx. $13.73/hr
- Family day care: approx. $12.72/hr
- Outside school hours care: varies depending on the program.
4. Second Child Discount
Families with more than one child under the age of 5 may qualify for a higher subsidy (up to 95%) for the second and subsequent children in care.
Upcoming Changes in 2026
Starting in January 2026, significant changes will be implemented to enhance accessibility and simplify the system:
- Elimination of the Activity Test: Families earning under $533,280 annually will automatically be entitled to 72 hours of subsidised care per fortnight, regardless of their activity status.
- Three-Day Guarantee: Every child will have access to 3 days of subsidised child care, ensuring broader support for all families.
- Increased Support for Stay-at-Home Parents: The upcoming changes will particularly benefit children from all backgrounds, including those of stay-at-home parents, promoting early education and socialization.
These adjustments are expected to benefit over one million families and simplify the CCS application process.
How to Apply for the CCS
Follow these simple steps to apply for the Centrelink Child Care Subsidy:
- Create or Log into Your myGov Account: Visit my.gov.au, and either create a new account or log in. Link your myGov account to Centrelink.
- Submit Your Claim: In the Centrelink section, select “Make a claim” > “Families” > “Child Care Subsidy”.
- Provide Your Information: Fill in your estimated annual family income, the activity hours of you and your partner, details of your approved child care provider, and evidence of your child’s immunisation status.
- Wait for Application Assessment: Centrelink will review your application and begin processing the subsidy once your child starts attending care.
- Keep Your Information Updated: Report any changes in income, activity hours, or child care arrangements to avoid overpayments or delays in your subsidy.
Practical Tips to Maximise Your CCS
- Use the CCS Calculator to estimate your subsidy and budget for child care expenses.
- Update Centrelink promptly with any changes to your income or activity levels.
- Submit accurate income estimates to avoid repayments.
- Choose child care providers who charge near or below the hourly cap to minimize out-of-pocket costs.
- If you have multiple children under 5, take advantage of the second child discount.
- Track your activity hours, especially if you’re self-employed or volunteering.
The Centrelink Child Care Subsidy 2025 remains an essential support for Australian families, offering significant financial assistance for child care services.
With upcoming changes in 2026 that will increase access and simplify the system, now is the perfect time to understand how to make the most of this subsidy.
Ensure you meet eligibility criteria, accurately estimate your subsidy, and apply through the myGov portal to take full advantage of the assistance available to you.
FAQs
What is the Child Care Subsidy?
The Child Care Subsidy (CCS) is a government payment that helps reduce the cost of child care for eligible families. It is paid directly to the child care provider to lower the amount parents need to pay.
How can I apply for the CCS?
You can apply for the CCS through the myGov website, linking your account to Centrelink and submitting the necessary details about your income and child care provider.
Who is eligible for the CCS?
You are eligible if you are responsible for a child aged under 13, using an approved child care provider, and meet Australian residency and immunisation requirements.
What are the upcoming changes to the CCS?
Starting in 2026, the activity test will be removed, and families will receive 72 hours of subsidised care per fortnight, regardless of their activity status. Additionally, a three-day guarantee will be introduced.