How does the Child Care Subsidy work in Australia?

The Child Care Subsidy is a government payment that can help you with the costs of childcare. If you’re yet to apply for the Child Care Subsidy for your child and wondering how much is the Child Care Subsidy, here’s what you need to know about the scheme before you submit your application.



What is the Child Care Subsidy?

In Australia, the Child Care Subsidy is a type of government assistance designed to help families with the cost of childcare. The exact amount you will receive depends on your Child Care Subsidy eligibility and family/ financial circumstances, specifically:

  • Your family’s combined income.
  • The number of children within your care.
  • Your childcare provider’s hourly rate.
  • The hours of recognised activity (paid and unpaid) that you and your partner do.


Am I eligible for the Child Care Subsidy?

Child care subsidy eligibility is determined by meeting all of the following four requirements, according to Services Australia:

  • You are caring for a child under the age of 13 who is not attending secondary school, unless an exemption applies.
  • You are using an approved childcare service.
  • You are responsible for paying the childcare fees.
  • Your family meets residency and immunisation requirements.


How much is the Child Care Subsidy?

The Child Care Subsidy is means tested and paid directly to your childcare provider. For most families it won’t cover the entire amount, and families pay the difference between the subsidised amount and their childcare fees.

2020-2021 CSS family income thresholds Subsidy % of actual fee charged or relevant hourly rate: whichever is lower
$0 to $69,389 85%
$69,390 to $174,389 Between 85% and 50%
(The percentage goes down by 1% for every $3,000 of income your family earns)
$174,390 to $253,679 50%
$253,680 to $343,679 Between 50% and 20%
(The percentage goes down by 1% for every $3,000 of income your family earns)
$343,680 to $353,679 20%
Equal to or above $353,680 0%


From July 2022, subsidies will increase for families with more than one child in care under the age of 6, and the annual subsidy cap will be removed. We’ve passed this date.  Needs to be updated to reflect current subsidy arrangements


When should I apply for the Child Care Subsidy?

It’s a good idea to apply as soon as you know you’ll be needing childcare for your little one. The process can take a number of weeks, so the earlier the better. If your Child Care Subsidy is not already in place when your child begins care, you willneed to pay full fees until the subsidy is active. You can apply for the Child Care Subsidy before you’ve officially chosen your childcare provider or enrolled your child.


How to apply for the Child Care Subsidy

Applying for the Child Care Subsidy is simple. To begin the application, you may first need to collect certain documentation including identification documentation, payslips and medical records.

Once you’ve got your paperwork ready, here’s how to claim your childcare rebate:

  1. Sign into MyGov and click on Centrelink
  2. Select “Make a claim”
  3. Find “Families” and click “Get started”
  4. Select “Apply for family assistance” and answer questions
  5. Select “Child Care Subsidy” then “Claim Now”
  6. Review and submit form
  7. Once approved, enrol your child in childcare
  8. After your child is enrolled, complete the Complying Written Agreement through MyGov


When do I need to update my details?

There are a few situations where you’ll need to update your Child Care Subsidy details in your MyGov account. This includes if:

  • Your family income changes
  • Your relationship status changes
  • Your or your partner’s activity levels change, such as volunteering or actively looking for work
  • There are other changes to your circumstances, such as your child starting school or your address changing.


I’m ready to apply for the Child Care Cubsidy

Great! Visit Services Australia to read more information and begin the application process for your Child Care Subsidy. And with our childcare centres in Mornington, Ballarat and Penrith that incorporate the NSW and Victoria Early Years Learning Framework, our team at Aurrum Kids is always here to help.

Each of our childcare centres offer stimulating indoor and outdoor learning environments designed to engage children’s natural curiosity and love of learning. Join our waitlist today or, if you want to find out more about our childcare centres, explore our information for parents.


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