Child Care Subsidy (CCS) Guide for Parents
18 February 2025
In Queensland and across Australia, parents can access the government-funded Child Care Subsidy (CCS) to help reduce the cost of child care services. This guide will provide all the information you need about the Child Care Subsidy, including eligibility requirements, subsidy amounts, and how to claim the subsidy.
What is Child Care Subsidy?
The Australian government's Child Care Subsidy initiative provides families with financial assistance to offset the cost of child care services such as preschool, kindergarten, and outside school hours care.
As of 8 July 2024, the hourly rate caps and family income thresholds for the CCS were increased to offer increased subsidies for more families.
Updated CCS hourly rate caps
Centre-Based Day Care - $14.29 per hour for children below school age, $12.51 per hour for school-age children
Outside School Hours Care- $14.29 per hour for children below school age, $12.51 per hour for school-age children
Updated family income threshold
The family income threshold has been increased from $80,000 to $83,280 for the 90% subsidy rate. This means that families with a household income of up to $83,280 will receive the maximum Child Care subsidy.
How Child Care Subsidy Works
The CCS can only be claimed by families who use an approved child care provider, such as Mary MacKillop Childcare North Queensland (MMCNQ).
Families must provide evidence that they meet the eligibility criteria to claim the child care subsidy. After an assessment, applicants will be notified of the eligible level of subsidy. The subsidy is paid directly to the child care provider, who then deducts the amount from the payable fees.
Who Can Access the Child Care Subsidy?
The CCS is accessible to families that meet the following eligibility criteria:
- One or more primary caretakers must be Australian citizens or hold a permanent residency visa.
- Caretakers must care for the child at least 2 nights per fortnight or have 14% care.
- Caretakers must be responsible for paying the fees of an approved child care service.
- Children must meet immunisation requirements.
- Children must not be attending secondary school. Secondary school children who require supervision due to disability are exempted.
Families can apply for Additional Child Care Subsidy to access more financial assistance if they are:
- experiencing temporary financial hardship
- a grandparent
- transitioning to work
Both Child Care Subsidy and Additional Child Care Subsidy can be claimed as long as the eligibility requirements are met.
Frequently Asked Questions
How does the Child Care Subsidy work with Free Kindy?
In Queensland, children who are at least 4 years old by 30 June in the year before attending Prep can attend up to 15 hours of kindergarten for free. Free kindergarten and Child Care Subsidy can be applied for together with government-approved child care providers.
Free kindy provides 15 hours of education and care each week for 40 weeks each year. Child Care Subsidy (CCS) helps cover the cost of hours beyond the allocated Free Kindy hours (referred to as ‘wrap-around’ hours) and/or additional days, if eligible.
How much subsidy can I claim?
The amount of Child Care subsidy that can be claimed will depend on:
- household income – lower-income families will be eligible for more subsidy, up to 90%
- the type of child care service
- the number of recognised hours where you or your partner are unable to care for the child
- the number of children attending child care
Can I receive Child Care Subsidy for each child?
Yes, the amount of child care subsidy you are eligible for will take into account how many children require child care. There is no need to submit separate applications for each child — you can simply indicate the change on the existing claim. You may get a higher Child Care Subsidy for your second child if you have more than one child aged 5 or younger in care. Children do not need to attend the same child care service to be eligible for subsidy.
Do I have to be employed to be eligible for the child care subsidy?
Not necessarily. Parents and caretakers can still be eligible for child care subsidy if they are involved in recognised activities such as studying, charity work, setting up a business, or actively looking for work. Evidence of these activities must be submitted along with the application. Periods of maternity or paternity leave are also eligible for the child care subsidy.
