Childcare Rebates Explained
Understanding the Child Care Subsidy: Formerly Known as Child Care Benefit and Child Care Rebate
This page is to help you understand the new Child Care Subsidy (CSS), which you may have heard called a child care rebate or child care subsidy.
Background to the Child Care Subsidy
Until 1 July 2018, eligible families could claim support for child care costs through the Child Care Benefit (CCB) or the Child Care Rebate (CCR). These payments stopped on 1 July 2018, and were replaced by the Child Care Subsidy.
The Child Care Subsidy is a financial assistance to reduce your out-of-pocket costs for child care. Depending on your circumstances, you may be entitled to receive up to 90% of your child care fees covered by the subsidy.
Extra support is also available for:
- Families experiencing temporary financial hardship
- Parents transitioning back to work
- Grandparent carers on income support
Learn More about the Child Care Subsidy
Changes to Childcare Rebates
Since 2 July 2018, childcare has become more accessible with higher levels of financial support for eligible families. Instead of a child care rebate paid to families, the Child Care Subsidy is paid to an approved child care service to reduce out-of-pocket costs.
More importantly, this initiative will give your child an opportunity to take advantage of the benefits of an early childhood education. Family life is busy – in between juggling work and family life, so we’ve outlined the changes for you.
With the changes to financial support for families the Child Care Benefit (CCB), and Child Care Rebate (CCR) and now known as the Child Care Subsidy (CCS).
The Child Care Subsidy (CCS) offers eligible families reduced out-of-pocket expenses for child care, allowing children to spend more time in high-quality early childhood education and care. This support ensures they receive the best possible start in life.
Your CCS rate is determined by a percentage that takes into account various eligibility factors, including your family’s income, your child’s age, and both paid and unpaid activities, such as employment or volunteer work, in which your family participates.
Child Care Subsidy for 2024-25
For the 2024-25 financial year, families earning up to $533,280 may be eligible for support through the Child Care Subsidy, making childcare more affordable.
- For those earning below $83,280, a generous 90% subsidy on the cost of childcare is available, significantly reducing out-of-pocket expenses.
- Families earning less than $362,408 with more than one child could benefit from a higher Child Care Subsidy of up to 95% for their younger children.
- There are additional subsidies on top of the Child Care Subsidy for families with children aged 3-5 years attending our government-approved preschool or kindergarten program. For more information, please visit our fee support information page.
We have made it easy for you to understand how much of the child care benefit you might be eligible for with our simple Child Care Subsidy Calculator.
Curious about your family’s Child Care Subsidy?
Use our CCS Calculator to get an estimate:
Making the most of your Child Care Subsidy
To ensure you’re maximising the benefits from the Child Care Subsidy and resulting child care rebate, it’s important to understand how your family’s circumstances affect your entitlements. We’ve put together some helpful tips about the current child care benefit that could affect how much CCS you could get.
Frequently Asked Questions about the cost of childcare
Why does the government provide subsidies or rebates for childcare?
The government provides financial assistance to families to help cover the cost of childcare. This eases out of pocket costs depending on how much a family earns and allows parents to return to work and for children to be exposed to high-quality early childhood care and education, which has many proven benefits for child development.
What happened to the Child Care Rebate and Child Care Benefit?
The Child Care Rebate and Child Care Benefit were replaced by the Child Care Subsidy on 1 July 2018. This new subsidy offers more support for eligible families and is paid directly to child care services to reduce out-of-pocket costs.
How do I claim the CCS?
The easiest way to decide how to make a claim is by visiting the Services Australia website.
Am I eligible for the CCS?
To get Child Care Subsidy (CCS) you must:
- care for a child 13 or younger who’s not attending secondary school, unless an exemption applies
- use an approved child care service
- be responsible for paying the child care fees
- meet residency and immunisation requirements.
How much am I entitled to claim through the CCS?
This will depend on your individual circumstances. You can estimate your likely out of pockets costs using our simple Child Care Subsidy Calculator.