Centrelink Child Care Subsidy 2025: Who Is Eligible? Full Criteria Explained

Centrelink Child Care Subsidy 2025: A Parent’s Guide to Getting Help with Childcare Costs If you’re a parent or guardian living in Australia, understanding how the Centrelink Child Care Subsidy (CCS) works in 2025 could be one of the best things you do this year. Whether you’re heading back to work, studying, volunteering or just trying to manage everyday life, this subsidy can help with the financial stress of childcare.

With costs rising and busy schedules, having access to affordable early education and care for your child isn’t just a luxury – it’s a necessity. The CCS is here to support families like yours by paying part of your childcare fees directly to approved providers.

Let’s go through everything you need to know about the Centrelink Child Care Subsidy in 2025 , including who’s eligible, how much you’ll get, how to apply and what’s changing soon.

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

What Is the Centrelink Child Care Subsidy?

The Child Care Subsidy (CCS) is a government funded payment that helps reduce the cost of child care services for Australian families. It’s paid directly to approved providers – think long day care, family day care, outside school hours care, vacation care and occasional care – so you pay less out of pocket.

This program has evolved over time to better suit modern families, especially those juggling work, study and parenting. In 2025 it’s still a lifeline for many households across the country.

Who Can Get the Child Care Subsidy in 2025?

To be eligible for the CCS you’ll need to meet a few simple requirements:

• Your child must be under 13 years old and not attending secondary school (unless there’s an exemption, such as for children with disabilities).
• You must use a registered child care provider .
• You should be paying the childcare fees.
• You or your partner must be an Australian citizen, permanent resident or hold certain eligible visas .
• Your child must be up-to-date with their immunisations , unless medically exempt.

Let’s take Sarah for example. She’s a single mum of two kids aged 3 and 6. She works part time and uses both long day care and after school care. Because she meets the income, activity and immunisation criteria she qualifies for the CCS.

How Much Will You Get?

Your CCS entitlement is based on:

Family Income

Combined annual income with your partner (if applicable)

Annual Family Income	Subsidy Percentage
Up to $83,280	90%
$83,281 – $533,279	Gradually reduces
Over $533,280	Not eligible

Families with more than one child under 5 may get a higher rate for younger siblings, helping them afford care for all their little ones.

Activity Test

In 2025, your CCS entitlement also depends on how many hours of “approved activities” you and your partner do each fortnight. These include:

• Paid or unpaid work
• Looking for work
• Studying or training
• Volunteering
• Parental leave

Activity Hours (per fortnight)	Subsidised Care Hours
Less than 8	0–24 hours
8–16	36 hours
16–48	72 hours
Over 48	100 hours

Hourly Rate Cap

There’s a limit to how much the government will pay per hour for different types of care:

• Centre-based day care: ~$13.73/hour
• Family day care: ~$12.72/hour
• Outside school hours care: Varies

If your provider charges more than these caps, you’ll need to pay the difference.

Second Child Discount

If you have multiple children under 5, the second and subsequent children may get a slightly higher subsidy (up to 95%) so you get a break on overall costs.

Big Changes Coming in 2026

From January 2026 big changes are rolling out that will make the CCS even more accessible and user friendly:

• Activity test removal : No more tracking your hours — everyone earning under $533,280 gets at least 72 hours of care per fortnight.
• Three-day guarantee : Every eligible child gets 3 days of subsidised care each week, no matter the parents’ situation.
• Better support for stay-at-home parents : This change ensures every child can benefit from early learning and social development opportunities.

These changes will simplify the system and support more families across Australia.

How to Apply for the Child Care Subsidy

Applying for the CCS is easy if you follow these steps:

1. Create or log into your myGov account
   Go to my.gov.au and either set up a new account or sign in with your existing details. Then link it to Centrelink.
2. Start your claim
   Go to Centrelink > Make a Claim > Families > Child Care Subsidy.
3. Provide your information
   You’ll need to give:
   • Estimated annual income
   • Activity hours for you and your partner
   • Details of your child care provider(s)
   • Proof of your child’s immunisation status
4. Wait for approval
   Once submitted Centrelink will review your application. If approved the subsidy will kick in once your child starts attending care.
5. Keep your details updated
   Let Centrelink know if anything changes — like income, working hours or child care arrangements — to avoid issues later.

Tips to Make the Most of Your Subsidy

• Use the Services Australia CCS calculator to estimate your subsidy and plan ahead.* 📆 Update your income estimate regularly to avoid surprises.
• Choose child care providers whose fees are close to or below the hourly cap.
• Take advantage of the second child discount if you have multiple kids under 5.
• Keep a record of your activity hours if you’re self-employed or volunteering.

Frequently Asked Questions (FAQs)