Centrelink Child Care Subsidy 2025 – Raising a child in Australia can be expensive, but the Centrelink Child Care Subsidy 2025 is designed to make things a little easier for families. Whether you’re a working parent, studying, or simply need support with child care costs, this subsidy can significantly reduce your expenses. Understanding how it works, who qualifies, and how to claim it is key to getting the most from it.
In this guide, we break down everything you need to know about the Child Care Subsidy (CCS) in 2025—from eligibility requirements to how much you can get, and step-by-step instructions on how to apply. We’ve also added insights on recent reforms, tips to maximize your subsidy, case studies, and how CCS compares with other family payments in Australia. Let’s dive into the details!
Centrelink Child Care Subsidy 2025
| Feature | Details |
|---|---|
| Subsidy Rate | Up to 90% for incomes under $83,280 |
| Income Cap | Families earning over $533,280 are not eligible |
| Higher Rate for Multiple Children | Second and subsequent children under 5 may receive higher subsidy |
| Types of Care Covered | Centre-based, family day care, outside school hours, in-home care |
| Hourly Rate Caps | $14.29 (Centre-based), $13.24 (Family day care), $38.87 (In-home care) |
| Upcoming Change | Activity test to be removed for families earning up to $533,280 (from Jan 2026) |
| How to Apply | Online via Services Australia |
The Centrelink Child Care Subsidy 2025 offers generous support to help families reduce the financial burden of early education. Whether you’re working full-time or transitioning between jobs, understanding how CCS works can lead to thousands in savings annually. With planned reforms making it even more inclusive in 2026, there’s never been a better time to explore your options.
What Is the Child Care Subsidy (CCS)?
The Child Care Subsidy is a government payment administered by Centrelink that helps eligible families with the cost of approved child care. Introduced to replace the old Child Care Rebate and Child Care Benefit, the CCS is now the main support system for parents juggling work and child-rearing.
The payment is made directly to your child care provider to reduce your fees. You only pay the gap amount, which is the difference between the total fee and the subsidy paid.
Who Can Get the Subsidy?
To qualify for the Child Care Subsidy in 2025, you need to meet these conditions:
Eligibility Criteria
- Be responsible for paying child care fees for an approved service
- Meet residency requirements (generally Australian residents or holders of specific visas)
- Use an approved child care service
- Meet the income and activity tests (with major changes coming in 2026)
How Much Can You Get?
Subsidy Based on Income
Your combined family income determines how much subsidy you can receive:
| Family Income | CCS Percentage |
|---|---|
| $0 to $83,280 | 90% |
| $83,281 to $533,280 | Gradually decreases by 1% for every $5,000 over $83,280 |
| Above $533,280 | 0% (Not eligible) |
Source: Services Australia
More Kids = More Help
If you have more than one child aged 5 or under, the second and younger children may be eligible for a higher rate. For instance, if your first child gets 80%, your second might get 95%, depending on income.
Hourly Rate Caps
The government sets a limit on how much you can be subsidised per hour, based on the type of care:
- Centre-Based Day Care: $14.29/hour
- Family Day Care: $13.24/hour
- In-Home Care: $38.87/hour (per family)
If your provider charges more than these caps, you’ll pay the difference.
Source: Department of Education
What Counts as Recognised Activity?
To determine how many hours you can claim per fortnight, Centrelink checks how much recognised activity you do. This includes:
- Paid work (including self-employment)
- Unpaid work in a family business
- Study or training
- Volunteering
- Looking for work
The more hours of activity you do, the more subsidised hours you get.
Major Change in 2026: Activity Test Removal
Good news for families! From January 1, 2026, the activity test will be removed for families earning up to $533,280. That means even if you aren’t working or studying, you can still get up to 72 hours of CCS per fortnight. This change aims to make early childhood education more accessible for all.
More info: Yahoo Finance
How to Claim Child Care Subsidy in 2025?
Step-by-Step Guide to Applying
- Create a myGov account if you don’t have one already.
- Link it to Centrelink.
- Prove your identity online through myGov.
- Go to the Centrelink CCS section and start your claim.
- Submit documents, including proof of income and activity.
- Centrelink will notify you when your claim is assessed.
Make sure your child care provider is approved and registered with Centrelink.
Official portal: Services Australia – Claim CCS
Additional Payments to Know About
You may also be eligible for other government family payments alongside CCS:
- Family Tax Benefit Part A & B
- Parental Leave Pay
- Paid Dad and Partner Pay
- Rent Assistance
Learn more at Services Australia – Families
Real-Life Example
Let’s say Jane and Tom have a combined income of $100,000 and two children under 5 in full-time child care. They qualify for around 82% subsidy for their first child and up to 95% for the second. This dramatically reduces their out-of-pocket costs, allowing them to continue working without the financial stress.
Tips to Maximise Your Subsidy
- Keep your income estimate accurate to avoid debt or underpayments.
- Update activity details regularly.
- Use a CCS estimator to plan ahead: CCS Calculator
- Choose providers whose rates fall within the hourly cap.
- Combine CCS with Family Tax Benefits for maximum support.
$1,100 Centrelink Direct Deposit in April 2025 – Are You Eligible for This Payout?
FAQs
Q1: Can grandparents or guardians claim CCS?
Yes, if they are the primary carers and meet the other eligibility requirements.
Q2: How is the subsidy paid?
It is paid directly to the child care provider and deducted from your bill.
Q3: What if my income changes mid-year?
You should update Centrelink immediately through myGov to avoid overpayments or debts.
Q4: Is CCS taxable?
No, the Child Care Subsidy is not considered taxable income.
Q5: Can I backdate my claim?
Yes, you can backdate your claim by up to 28 days from when you submit it.
