The Child Care Subsidy (CCS) is a subsidy that the Australian government pays directly to your child care provider to reduce the fees you pay.

You or your partner must:

• Meet Australian residency requirements
• Be liable for childcare fees under a written agreement
• Meet the requirements for the CCS activity test or hold an approved exemption.

Your child must:

• Attend an approved childcare service in Australia
• Be under 13 years and not attending secondary school
• Be up to date with immunisations or have an approved exemption.

For more information on Child Care Subsidy eligibility and entitlement go to Services Australia - Child Care Subsidy

Recognised activity includes paid work, paid and unpaid leave and approved study. For more information, visit Services Australia - Recognised activities

You may be exempt from the Child Care Subsidy activity test if you are the principal carer of your grandchild, unable to work due to a disability or medical condition, or a Carer Payment recipient.

Aboriginal and Torres Strait Islander children may be entitled to a minimum of 36 hours of subsidised care, regardless of activity levels. Low income families may be entitled to a minimum of 24 hours of subsidised care per fortnight, regardless of activity levels.

To find out if any other Child Care Subsidy activity test exemptions apply, visit Exemptions and Activity level and subsidised care for Child Care Subsidy - Services Australia.

The Government’s proposed 3 day guarantee would give every CCS eligible child 72 hours (~3 days) per fortnight, and 100 hours for First Nations children, regardless of activity.

Legislation is before parliament, watch this space for a 2026 start date.

The amount of CCS you are entitled to is based on a few key areas, such as your combined household income and the results of the CCS Activity Test.

1. Family Income

Services Australia determines a family’s CCS percentage based on their estimated family income.

A family’s CCS subsidy rate is the percentage of the hourly rate that the government will subsidise. It will apply to the hourly fee or the relevant hourly rate cap, whichever is lower.

Standard subsidy rates for the first child, 0-5 years of age.

Number of Children in Care

Families with more than one child aged 5 or under in care may receive a higher subsidy for their second child and younger children. Siblings do not need to attend the same service to get a higher subsidy.

The rates for each child are worked out using two separate income tests.

Higher subsidy rates for second and younger siblings

1. Activity Test

The hours of subsidised care a family can get each fortnight depends on their activity level. The higher the level of activity, the more hours of subsidised care families can get.

Services Australia looks at both parents’ activity levels. They use the parent with the lower activity level to determine a family’s hours of subsidised care.

Families need to do a recognised activity to get CCS. Exemptions apply for parents who cannot meet activity test requirements.

Activity hours according to the Services Australia website for the 2025-2026 financial year

There are certain circumstances that you may meet, where you will be exempt from the activity test, and be eligible for 100 hours of subsidised care per fortnight. These include: if you have a disability or impairment or if you are a grandparent who is the principal carer for your grandchild, and you do not receive income support payments (see our section on Additional Child Care Subsidy if you do). There are many other reasons you may be exempt.

Visit the Services Australia website to find out if you are within the guidelines for an exemption.