Changes to the Child Care Subsidy – what it means for families

The Australian Government is making changes to the Child Care Subsidy (CCS), the financial assistance many families rely on to make early childhood education and care more affordable. These changes will take place from 7 July 2025. 

In great news, the CCS hourly rate caps and family income thresholds will rise, providing greater support and benefiting many eligible families who receive CCS. 

Here’s what you need to know, how it may affect your family, and how our team here at Guardian can support you with understanding the changes. 

Hourly Subsidy Caps Are Increasing

The Australian Government sets a maximum hourly fee cap it will subsidise. When a childcare service charges rates above that cap, families pay the difference. 

These caps are set to increase from 7 July 2025. 

What the Hourly Cap Increase Means for Families

If your centre’s hourly fee is under the cap, your gap fee may stay the same or reduce. If the fee is above the cap, you’ll pay the extra amount out-of-pocket. 

Your centre’s hourly rate may previously have been above the cap – but may now be within the cap – which may reduce your out-of-pocket costs. 

Income Thresholds and Subsidy Rates Are Being Adjusted 

The amount of CCS that your family is entitled to depends on your combined annual family income. These income brackets will change also starting 7 July: 

Here are the key thresholds: 

• Income up to $85,279: 90% subsidy 
• $85,279 to below $535,279: Subsidy decreases gradually as income increases. (by 1% for every $5,000 of income a family earns) 
• $535,279 and above: No subsidy 

For families with more than one child under six in care, a higher subsidy may apply for the second (and younger) child—up to 95%, depending on income. 

Tip: Try our CCS calculator to check what you may be currently entitled to. 

At Guardian, we are here to support families 

We know understanding CCS can be tricky, and our team is happy to help! The best way to learn more about how subsidised childcare works is to visit one of our Guardian childcare centres and speak to a member of the team to learn more.  

Find your closest centre and book a tour to get started!