As living expenses rise and child care remains one of the biggest costs for working families, the Australian Government has rolled out key updates to the Centrelink Child Care Subsidy (CCS) in 2025.
These changes aim to make child care more affordable and accessible, especially for low- and middle-income families.
Here’s everything you need to know about CCS in 2025 — from eligibility criteria, payment amounts, and how to apply, to important updates that will impact your family’s finances.
What Is the Child Care Subsidy?
The Child Care Subsidy is a government initiative that helps families pay for approved child care services. The subsidy is paid directly to your child care provider, which reduces the fees you pay out of pocket.
The amount you receive depends on your family’s income, your activity level, and the type of care you use.
CCS Payment Rates for 2025
As of April 2025, CCS payment rates have been adjusted to support more Australian families:
| Family Income (Per Year) | Subsidy Percentage |
|---|---|
| $0 – $83,280 | 90% |
| $83,281 – $530,000 | Decreases by 1% for every $5,000 earned |
| $530,001 and above | 0% (No subsidy) |
For families earning under $83,280, the government will now cover up to 90% of child care costs, which is a significant help for working or studying parents.
How the Activity Test Affects You
Your activity level (such as work, study, volunteering, or looking for work) determines how many hours of subsidised child care you are entitled to per fortnight.
| Activity Hours (per Fortnight) | Subsidised Hours |
|---|---|
| Less than 8 hours | 0 (or 24 hrs if income < $83,280) |
| 8–16 hours | 36 hours |
| 16–48 hours | 72 hours |
| Over 48 hours | 100 hours |
The more activity you report, the more subsidised care hours you can access.
Who Is Eligible?
To get the Child Care Subsidy, you must:
- Have a child aged 13 or younger who is not attending secondary school.
- Use approved child care services.
- Be responsible for paying the child care fees.
- Meet residency and immunisation requirements.
- Pass the activity and income test.
Only one parent or guardian can claim CCS per child.
What’s Changing Next?
Starting in January 2026, a major reform is expected: a Three-Day Guarantee, which will remove the activity test and give all families 72 hours (or 3 days) of subsidised child care per fortnight. This is a significant win for parents who are studying, unemployed, or working irregular hours.
How to Apply
Here’s how to claim the Centrelink Child Care Subsidy in 2025:
- Set up your myGov account and link it to Centrelink.
- Complete the CCS assessment, including income and activity info.
- Finalise your child’s enrolment with an approved provider.
- Once approved, the subsidy will automatically be paid to your provider, lowering your fees.
Make sure to keep your activity hours and income estimates up to date to avoid overpayments or disruptions.
The Centrelink Child Care Subsidy 2025 is a powerful tool to help Australian families manage the high cost of child care. With up to 90% of fees covered, more flexible activity rules, and a Three-Day Guarantee on the horizon, it’s now easier than ever to access affordable care while working, studying, or job hunting.
Stay informed, update your details regularly, and make sure your child is enrolled in an approved service so you don’t miss out on these valuable savings.
FAQs
Can I get CCS if I’m not working?
Yes, if your income is under $83,280, you may still qualify for 24 hours of subsidised care per fortnight.
What if my income changes during the year?
You should update your income estimate in your Centrelink account to ensure you get the correct subsidy.
Is the subsidy paid to me or my provider?
The CCS is paid directly to your child care provider and applied as a fee reduction. You only pay the gap.