The Centrelink Child Care Subsidy (CCS) 2025 is a vital support program for Australian families balancing the demands of work, study, or other approved activities while ensuring their children receive access to quality early learning. In the face of rising living costs, the CCS acts as more than just financial relief-it’s a lifeline that empowers families to access affordable, reliable child care and supports children’s development from an early age.
The CCS is administered by the Australian Government and is paid directly to approved child care providers. This reduces the amount families have to pay out of pocket. Whether you’re a new parent or returning to the workforce, this comprehensive 2025 guide covers everything you need to know about CCS eligibility, payment rates, application steps, and upcoming policy changes. It includes real-life examples, FAQs, and official tools to help you make informed decisions.
Centrelink Child Care Subsidy 2025 Overview
| Feature | Details |
|---|---|
| Child Age Requirement | Under 14 and not attending secondary school (some exceptions) |
| Income Threshold | Families earning up to $533,280 may qualify for CCS |
| Maximum Subsidy | Up to 90% of child care fees covered |
| Activity Test | Required in 2025, but to be phased out in 2026 |
| Upcoming Changes | From Jan 2026: Three-day access guarantee, no activity test |
| Application | Apply online via myGov and Centrelink |
| Estimator Tool | Use the CCS Calculator from Services Australia |
The CCS aims to make early education and care more accessible to all families. With simplified processes and major changes set for 2026, it’s a great time to understand how this subsidy can help support your child’s early learning journey and ease the financial burden.
What is the Centrelink Child Care Subsidy?
The Child Care Subsidy (CCS) is a payment from the government that assists families by reducing the cost of various approved child care services. This includes:
- Long day care
- Family day care
- Outside school hours care
- Vacation care
- Occasional care
Payments are made directly to the provider, lowering your regular fees. The CCS is designed to promote affordable early education while enabling parents and carers to engage in the workforce or other approved activities.
Who Can Get the Child Care Subsidy in 2025?
To be eligible for CCS in 2025, you must:
- Be responsible for a child aged under 14 and not attending secondary school (unless they have an exemption)
- Use a government-approved child care service
- Be liable for paying the child care fees
- Meet Australian residency rules (citizenship, permanent residency, or relevant visa)
- Ensure your child is up-to-date with immunisations
Example:
Emily is a full-time student and mother of a 2-year-old. She uses a registered long day care service while attending university. Since she meets the activity, residency, and income criteria-and her child is immunised-Emily qualifies for CCS and receives a significant fee reduction.
How Much CCS Can You Receive?
Your CCS rate is based on several factors:
1. Family Income
| Annual Family Income | Subsidy Rate |
|---|---|
| Up to $83,280 | 90% subsidy |
| $83,281 – $533,279 | Tapers by 1% for every $5,000 |
| Above $533,280 | No subsidy available |
If you have multiple children under 5 in care, the younger siblings may qualify for a higher subsidy (up to 95%).
2. Activity Test
Your hours of subsidised care are determined by your and your partner’s (if applicable) approved activities:
- Employment (including self-employment)
- Actively seeking work
- Studying or training
- Volunteering
- Parental leave
| Activity Hours (per fortnight) | Subsidised Care |
|---|---|
| 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 |
Note: The activity test will be abolished in 2026, and all families earning under $533,280 will be guaranteed 72 hours of care per fortnight.
3. Hourly Rate Caps
The CCS only covers costs up to a government-set hourly cap. If your provider charges more, you’ll pay the difference.
- Centre-based care: Around $13.73/hour
- Family day care: Around $12.72/hour
- Outside school care: Varies by provider
4. Higher Subsidy for Second Child
Families with more than one child under 5 years old in care may receive a higher subsidy (up to 95%) for the second and subsequent children. This helps ease the financial load for families with multiple young kids.
Major CCS Changes Coming in 2026
To improve accessibility and simplify the subsidy system, the government is rolling out new measures from January 2026:
- Activity Test Removal: Families earning less than $533,280 will no longer need to meet activity requirements to qualify for CCS.
- Three-Day Guarantee: Every child will receive up to 72 hours (three days) of subsidised care, regardless of parental activity.
- Support for Stay-at-Home Parents: These changes will provide broader access to early learning for children across all family types.
These reforms are expected to benefit over a million families across Australia.
Source: Daily Telegraph
How to Apply for the Child Care Subsidy
Step 1: Sign In to myGov
Visit my.gov.au and log in or create an account. Make sure your account is linked to Centrelink.
Step 2: Start Your Claim
Under the Centrelink section, select:
“Make a claim” > “Families” > “Child Care Subsidy”
Step 3: Provide Required Information
Include:
- Your estimated annual family income
- Your (and partner’s) activity details
- Details of your child care provider(s)
- Your child’s immunisation status
Step 4: Wait for the Outcome
Centrelink will review your submission. If approved, your CCS will begin from the first day your child attends care.
Step 5: Keep Your Details Updated
Report changes to income, activity, or child care usage as soon as possible to avoid disruptions or overpayments.
Smart Ways to Maximise Your CCS Benefits
- Use the CCS Calculator to estimate your entitlement and plan care options
- Choose providers who charge close to or below the hourly cap
- Inform Centrelink promptly of income or activity changes
- Maintain records of activity hours if self-employed or volunteering
- Consider the second child discount if applicable
Frequently Asked Questions (FAQs)
Can grandparents apply for CCS?
Yes, if they are the primary carers and meet all other eligibility requirements.
What if my income changes during the year?
Update Centrelink right away to ensure your CCS rate stays accurate and avoid potential overpayments.
Do I need to reapply every year?
No. But you must confirm your details and update your income estimate annually.
Can I receive CCS while on maternity leave?
Yes. Both paid and unpaid parental leave count as approved activities.
Will I get back pay if I apply late?
Yes, CCS can be backdated up to 28 days from the date you submit your claim.
Is there a subsidy cap for higher-income families?
The annual cap of $10,655 per child may apply to families earning above $189,390.
The Centrelink Child Care Subsidy 2025 is a crucial support for Australian families. With major changes set for 2026 that make it even easier to access, now is the time to understand your eligibility and apply. Whether you’re working, studying, job hunting, or caring for your child full-time, CCS can help you give your child the best start while easing your financial burden.