Centrelink Paying Big for Child Care in 2025: If you’re a parent in Australia with young children, 2025 could bring a major financial boost for your household. That’s because Centrelink’s enhanced Child Care Subsidy (CCS) now covers a larger portion of child care costs than ever before — with some families receiving up to 90% or more in subsidies. Designed to make quality child care more accessible and affordable, this expanded support can save families thousands of dollars annually, giving parents greater freedom to work, study, or manage other responsibilities.
The updated CCS isn’t just about cutting costs. It’s also about investing in early childhood education and ensuring that all children, regardless of family income, have access to high-quality care that supports their development. Whether your child attends a daycare center, in-home care, or before/after school programs, Centrelink has more flexible rules and higher income thresholds than previous years.
Below, we break down everything you need to know about the 2025 CCS changes — including eligibility, payment rates, how to calculate your benefit, and step-by-step instructions to apply.
Centrelink Paying Big for Child Care in 2025
| Feature | Details |
|---|---|
| Maximum Subsidy Rate | Up to 90% for families earning under $83,280/year |
| Income Eligibility Threshold | Families earning up to $533,280/year are eligible for partial CCS |
| Three-Day Guarantee | 72 hours of subsidized care per fortnight available without activity test |
| Hourly Rate Caps (2024–25) | $14.29/hr (centre-based < school age), $12.51/hr (school age), $13.24/hr (family day care), $38.87/hr (in-home) |
| Projected Annual Savings | Up to $11,400 per child |
| Application Portal | myGov via Services Australia |
| Official Resource | Services Australia CCS |
Centrelink’s 2025 updates to the Child Care Subsidy are a game-changer for many Australian families. With increased income thresholds, expanded eligibility, and the Three-Day Guarantee, more children can attend early education, and more parents can afford to return to work or study.
Understanding how CCS works — and how it interacts with your income and activity level — can unlock thousands in yearly savings. Whether you’re a first-time parent or navigating multiple child care arrangements, now is the time to assess your eligibility and take action. To get started or learn more, visit the official CCS page.
What Is the Child Care Subsidy (CCS)?
The Child Care Subsidy (CCS) is Australia’s primary financial support system for families using approved child care. This includes:
- Centre-based day care (long day care, preschools)
- Family day care
- In-home care (nannies or approved carers)
- Outside school hours care (before, after school, and vacation care)
The CCS is paid directly to your child care provider, which lowers your bill. You’re only responsible for the “gap fee” — the difference between the total cost and what Centrelink pays on your behalf.
The subsidy is means-tested and activity-tested, meaning it considers both your household income and how much time you spend working, studying, volunteering, or seeking employment. However, new rules for 2025 — including the Three-Day Guarantee — give families more access even if they don’t meet the standard activity test.
How Much Child Care Subsidy Will You Get in 2025?
1. Family Income Determines Your Subsidy Percentage
- Under $83,280/year: 90% subsidy
- $83,281 to $531,999/year: Subsidy reduces 1% for every $5,000 in extra income
- Above $533,280/year: No CCS
This sliding scale ensures that lower- and middle-income families receive more help.
2. Hourly Rate Caps Apply to Approved Care Types
If your provider charges more than the capped amount, you must pay the difference out of pocket.
- Centre-Based Day Care (< school age): $14.29/hr
- Centre-Based Day Care (school age): $12.51/hr
- Family Day Care: $13.24/hr
- In-Home Care: $38.87/hr (per family)
3. Activity Level Affects Number of Hours Subsidized
| Activity Hours (fortnight) | CCS Hours (fortnight) |
|---|---|
| Less than 8 hours | 0 (unless exempt) |
| 8–16 hours | 36 hours |
| 16–48 hours | 72 hours |
| 48+ hours | 100 hours |
New for 2025: Under the Three-Day Guarantee, families automatically get up to 72 hours of subsidized care every fortnight — even if they don’t meet the minimum 8-hour activity requirement.
Real-Life Example: How Much You Could Save
Scenario: Sam and Priya earn $95,000/year and send their toddler to a centre-based day care charging $13/hour for 40 hours a week.
- They qualify for approximately 82% CCS.
- CCS covers $10.66/hr x 40 hrs = $426.40/week.
- Out-of-pocket cost: $13 x 40 = $520 – $426.40 = $93.60/week.
- Annual savings: Over $22,000/year if attending 48 weeks.
This example doesn’t even include additional subsidies like the ACCS (Additional Child Care Subsidy), which could provide more help in special circumstances.
Centrelink Paying Big for Child Care in 2025 Apply for the Child Care Subsidy
- Check Eligibility Criteria: To apply for CCS, you must,
- Care for a child aged 13 or under (not in secondary school)
- Be responsible for paying child care fees
- Use a government-approved provider
- Meet immunization and residency requirements
- Set Up a myGov Account and Link Centrelink:
- Go to myGov
- Link to Centrelink via Services Australia
- Submit a Claim:
- Log in and choose “Apply for CCS”
- Provide your income estimate, employment activity, and child care details
- Confirm Enrolment:
- Your provider will send an enrolment notification
- Accept this in your myGov account
- Receive CCS Payments:
- Centrelink pays directly to the provider
- Your bill reflects only the gap fee
Tip: Apply before your child’s first day of care to avoid delays in payment.
What Happens If Your Income or Circumstances Change?
Because your CCS rate is based on your estimated annual income, it’s important to update your details whenever something changes:
- Job change
- Increase/decrease in household income
- Shift from full-time to part-time work
- Returning from maternity or paternity leave
Every July, Centrelink will reconcile your payments using your tax return. If you overestimated income, you may receive a top-up. If you underestimated, you may need to repay the difference.
Additional Child Care Subsidy (ACCS)
ACCS offers extra help for families facing complex challenges:
- Children at risk of abuse or neglect
- Grandparents who are primary carers
- Temporary financial hardship (e.g., job loss, domestic violence)
- Parents transitioning from income support to paid work
ACCS can cover up to 100% of child care fees for 100 hours per fortnight. Learn more here.
FAQs On Centrelink Paying Big for Child Care in 2025
Can I get CCS if I’m studying part-time?
Yes. Studying counts as an approved activity. Your total study hours help determine your subsidy.
Do both parents need to work or study?
Not necessarily. The parent with the lower activity level sets the cap on your hours.
What if I miss a payment or my claim is delayed?
Your subsidy may be backdated up to 28 days. It’s best to apply early.
Is there an annual cap on CCS payments?
There’s no annual cap for families earning under $190,015/year. For others, the cap is $10,655 per child.
Does CCS apply during school holidays?
Yes — as long as the care is provided by an approved provider and your child is enrolled for that period.
