Childcare Subsidy Calculator
Calculate your Child Care Subsidy (CCS) percentage and out-of-pocket gap fees based on family income and care type.
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
Frequently Asked Questions
How much Childcare Subsidy can I get?
What is the activity test for CCS?
What hourly fee caps apply to CCS?
Is the CCS annual cap still in place?
What is Childcare Subsidy?
Child Care Subsidy (CCS) is a federal government payment that reduces the out-of-pocket cost of approved childcare. The subsidy percentage depends on your combined family income, with caps on the hourly rate paid per care type.
How this calculator works
This calculator uses the 2025-26 subsidy formula: families earning ≤ $85,279 get 90% subsidy; this reduces 1% per $5,000 of additional income, reaching 0% at $533,280. The subsidy is calculated on the lower of your provider's hourly fee or the government cap (e.g. $14.63/hr for Centre Based Day Care). The activity test determines how many hours per fortnight are subsidised based on the lower-earning parent's recognised activity hours.
Hourly Rate Caps (from 7 July 2025)
CCS caps the subsidisable rate per care type. Anything above the cap is fully out of pocket. Caps as of 7 July 2025: Centre Based Day Care $14.63/hr, Outside School Hours Care $12.81/hr, Family Day Care $13.56/hr, In-Home Care $39.80/hr per family. Premium childcare centres often charge $15-$18/hr — even with high subsidy %, the gap above the cap is significant.
Activity Test
Both parents (or single parent) must do recognised activities to get subsidised hours. 0-8 hrs activity = 0 subsidised hours (or 100 hrs if low income); 8-16 hrs = 36 hrs; 16-48 hrs = 72 hrs; 48+ hrs = 100 hrs per fortnight. Recognised activities: paid work (incl. self-employment), study/training, volunteering, looking for work, parental leave, setting up a business.
Higher Rate for Multiple Children
Families with more than one child aged 5 or under in childcare get a higher subsidy on the second and subsequent children — additional ~30% on top of the standard rate, capped at 95%. This recognises the high cost burden of multiple young children in care simultaneously.
Annual Cap Removed
From 10 July 2023, the annual cap on CCS payments ($10,655 per child) was abolished for ALL families. There's no longer a maximum amount you can receive in a year — you continue to get subsidy on every eligible hour.
Withholding and EOFY Balancing
By default, Centrelink withholds 5% of your CCS during the year as a buffer. After EOFY, your CCS is balanced against your actual income — if you under-claimed, you get a top-up; if you over-claimed, you have a debt. Update your income estimate via myGov whenever circumstances change.
Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.