Centrelink Child Care Subsidy 2025: As a parent or guardian in Australia, understanding the Centrelink Child Care Subsidy (CCS) 2025 is critical to ensuring your child receives high-quality care while you manage work, study, job-seeking, volunteering, or other approved activities. With the cost of living on the rise and many families juggling multiple responsibilities, the Child Care Subsidy is not just financial aid—it’s an essential resource that enables access to early education, helps balance family life, and reduces out-of-pocket child care expenses.
The CCS is a major initiative by the Australian Government aimed at making child care more accessible and affordable for Australian families. It provides direct payments to child care services, which lowers the fees that parents must pay. Whether you’re new to parenting or returning to work, this comprehensive 2025 guide explains everything you need to know about CCS eligibility, payment rates, how to apply, and what changes are coming in the future. You’ll find examples, FAQs, and official links to help you make the most of your entitlements.
Centrelink Child Care Subsidy 2025
| Feature | Details |
|---|---|
| Eligibility Age | Children 13 years or under and not attending secondary school (unless exempt) |
| Income Threshold | Up to $533,280 annual family income to receive some CCS |
| Maximum Subsidy | 90% of approved child care fees covered for eligible families |
| Activity Test | Determines hours of subsidised care; will be removed from 2026 |
| Upcoming Changes | From Jan 2026: Three-day (72-hour) guarantee, activity test scrapped |
| Application | Through myGov and Centrelink online portals |
| Rate Calculator | Use Services Australia CCS Calculator for a personalized estimate |
The Centrelink Child Care Subsidy 2025 is a key policy aimed at helping families afford high-quality early education and care. With upcoming changes that broaden access and simplify the system, now is the perfect time to understand your eligibility, apply, and plan for the future. Whether you’re returning to work, pursuing education, or simply seeking social development opportunities for your child, the CCS can make a meaningful difference.
What is the Centrelink Child Care Subsidy?
The Child Care Subsidy (CCS) is a government payment made directly to approved child care providers on behalf of eligible families. It helps reduce the cost of child care services such as long day care, family day care, outside school hours care, vacation care, and occasional care. This ensures more families can afford consistent early education and supervision for their children while engaging in the workforce or other activities.
The CCS system has been streamlined over the years to provide a more equitable distribution of support based on family income, activity levels, and the number of young children in care. In 2025, this subsidy remains one of the most important supports for working families and single parents.
Who is Eligible for Centrelink Child Care Subsidy in 2025?
To qualify for the Child Care Subsidy in 2025, you must:
- Be responsible for the care of a child who is 13 years or under and not attending secondary school (exceptions apply for children with disabilities)
- Use an approved child care provider that is registered with the Australian Government
- Be responsible for paying the child care fees
- Meet Australian residency requirements (citizens, permanent residents, certain visa holders)
- Ensure the child meets the immunisation requirements as outlined by national health standards
Example:
Sarah, a single mother of two children aged 3 and 6, works 20 hours a week. She uses a registered long day care centre for her younger child and outside school hours care for her eldest. Because she meets the income, activity, and immunisation criteria, she qualifies for the CCS.
How Much Can You Get? CCS Payment Rates Explained
Your CCS entitlement depends on the following key factors:
1. Your Family Income
| Annual Family Income | Subsidy Percentage |
|---|---|
| Up to $83,280 | 90% |
| $83,281 to $533,279 | Subsidy gradually reduces by 1% per $5,000 increase |
| Over $533,280 | Not eligible for CCS |
Families with multiple children under 5 may receive a higher rate for younger siblings to encourage continued access to early learning for all children.
2. The Activity Test
Your entitlement also depends on how much approved activity you and your partner (if applicable) perform. Approved activities include:
- Paid work
- Looking for work
- Studying or training
- Volunteering
- Paid or unpaid parental leave
| Activity Hours (per fortnight) | Hours of Subsidised Care per Fortnight |
|---|---|
| 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, this test will be removed, enabling families to access up to 72 hours of care regardless of their activity status.
3. Hourly Rate Cap
The government has set a maximum hourly rate that it will subsidise. If your provider charges more than this cap, you will need to cover the difference.
- Centre-based day care: approx. $13.73/hr
- Family day care: approx. $12.72/hr
- Outside school hours care: varies based on program
4. Second Child Discount
Families with more than one child under age 5 can receive a higher subsidy (up to 95%) for the second and subsequent children in care, reducing the overall child care burden.
What Are the Changes Coming in 2026?
In a move to increase access and support early learning, the Australian Government has announced significant changes to come into effect from January 2026:
- Elimination of the Activity Test: All families earning under $533,280 annually will automatically qualify for at least 72 hours (3 days) of subsidised care per fortnight.
- Three-Day Guarantee: Every child will be entitled to 3 subsidised days regardless of the parent or carer’s employment or activity status.
- Increased Support for Stay-at-Home Parents: These changes help ensure children from all backgrounds can benefit from early education and socialization.
These changes are expected to benefit over one million families and reduce complexity in the CCS system.
Source: Daily Telegraph Report
How to Apply for the Child Care Subsidy
Step 1: Set Up or Log Into Your myGov Account
Go to my.gov.au and either create a new account or log in. Link your myGov account to Centrelink to proceed with your application.
Step 2: Submit Your Claim
Navigate to the Centrelink section, then choose:
“Make a claim” > “Families” > “Child Care Subsidy.“
Step 3: Provide Your Details
You’ll be asked to supply:
- Your estimated annual family income
- Information about your and your partner’s activity hours
- Details of your approved child care provider(s)
- Evidence of your child’s immunisation status
Step 4: Wait for Your Application to be Assessed
Centrelink will review your application, and if successful, your subsidy will begin when your child starts attending care.
Step 5: Keep Your Information Up to Date
Report any changes in income, activity levels, or child care arrangements to avoid overpayments or disruptions to your subsidy.
Practical Tips to Maximise Your Child Care Subsidy
- Use the CCS Calculator to estimate your subsidy and plan child care budgets.
- Update Centrelink promptly if your income or working hours change.
- Submit accurate income estimates to prevent repayment notices.
- Look for child care providers who charge close to or below the hourly cap to minimise out-of-pocket costs.
- Consider the second child discount if you have multiple children under 5.
- Track your activity hours and keep a log if you are self-employed, freelancing, or volunteering.
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FAQs About Centrelink Child Care Subsidy 2025
Can grandparents or relatives get CCS?
Yes. If they are the primary carers of the child and meet all CCS eligibility requirements, they can apply and receive CCS.
What happens if my income changes partway through the year?
You should notify Centrelink as soon as possible. Your CCS will be adjusted, and this helps avoid unexpected debts or overpayments.
Do I need to reapply every year?
No. However, you must update your income estimate and confirm your details annually to continue receiving CCS.
Can I get CCS while on maternity leave?
Yes, paid and unpaid parental leave counts as an approved activity under the activity test.
Will I get back pay if I apply late?
You can receive back pay for up to 28 days before the date you lodged your claim.
Is there a subsidy cap for high-income families?
Families earning under $189,390 no longer face a subsidy cap. For families above that threshold, the annual cap of $10,655 per child may apply.
