Fees and Funding

One of the benefits of the Government’s Child Care Subsidy which was introduced in 2018 to replace the Child Care Rebate was the removal of the annual cap for low and middle-income families. If your total combined family income was $186,958 pa or less, the annual subsidy cap was removed.

This has proved to be great news for families who hit the old cap well before the financial year was finished and found themselves paying full fees or reducing their number of days in care until the annual cap reset. It has also removed the barrier for families wanting to work extra shifts, or increase the days their child attends care.

Government support for families with children attending child care changes over time and in December 2021 the cap was  removed for all families earning $351,248 pa or less, extending the same benefits to higher earning families.

In 2022, further changes to the CCS were introduced which has made sending your second and subsequent children to child care even more cost effective. Up to 95% of the child care fees are now covered in the CCS payments for your second and subsequent children who attend child care. More information about the 2022 child care subsidy can be found in this blog post.

Changes to the Child Care Subsidy continue to evolve and make child care more affordable for families. In 2023, the cap was raised again so families earning under $530,000 pa got an increased subsidy. The CCS percentage you’re entitled to depends on your family’s income.

The subsidy for families earning under $80,000 pa increased from 85% to 90%. These changes were all automatically applied from the week beginning July 10th, 2023.  To calculate your family’s subsidy and entitlements, click here.