Are you getting the Child Care Subsidy you are entitled to?
The subsidy is paid straight to the centre and scales with your family income. It is also balanced at the end of the year against what you actually earned.
90%
the standard Child Care Subsidy rate for a family earning $88,520 or less. Above that it falls by 1% for every extra $5,000
What this is
The Child Care Subsidy is paid directly to your childcare provider and reduces the fee you are charged, rather than arriving as a payment to you. The percentage is set by your family income estimate: 90 per cent at or under 88,520 dollars, then falling by one per cent for every additional 5,000 dollars. Because it runs on an estimate, it is reconciled at the end of the year against your actual income, which is where debts and back-payments come from.
Does it apply to you?
- Families using approved childcare, including long day care, family day care and outside school hours care
- Families with two or more children under five, who may get a higher rate for younger children
- Anyone whose income or working hours have changed during the year
How to do it
- Claim through your Centrelink online account via myGov. You need to claim it; it is not automatic.
- Keep your family income estimate current. Too low and you get a debt at balancing; too high and you are underpaid all year.
- If you have two or more children under five in care, check the higher rate for the younger ones.
- Recheck when your income or hours of work change.
Where people lose the money
Setting the income estimate low to get more now.
It is reconciled against your tax return. An estimate that is too low becomes a debt, and a portion is withheld all year specifically to cover that.
Not updating it when your hours change.
The subsidy also depends on recognised activity. A change in work, study or volunteering can change your entitlement immediately.
Assuming enrolment is the same as claiming.
Your provider enrols the child; you still have to claim the subsidy through Centrelink and confirm the enrolment.
Questions
Do I get the money, or does the centre?
It is paid to the provider, who reduces your fees by that amount. You pay the difference.
What happens at the end of the year?
Services Australia compares your estimate with your actual adjusted taxable income and balances the payment. You are either paid the shortfall or asked to repay the excess.
Is there an income cut-off?
The rate falls to zero once family income reaches the upper threshold. Between the two thresholds it tapers by one per cent for every 5,000 dollars.
Does it cover all my hours of care?
The number of subsidised hours depends on your recognised activity, such as work, study or volunteering, with exceptions for lower-income families.
Where these numbers come from
- Services Australia, Your income can affect Child Care Subsidy · read 2026-09-22
Last gone over 2026-09-22. Figures change; the link above is always the current one.