Child Care Subsidy explained in plain English
Income test, activity test, hourly rate caps and how the subsidy reaches your invoice — without the Centrelink jargon.
📋 Kindergarten, fees & subsidies · 7 min read
Key facts
- CCS is paid directly to your service and reduces the fee you are invoiced.
- Your subsidy percentage depends on combined family income; your subsidised hours depend on the activity test.
- A CCS claim must be completed and confirmed before the subsidy can be applied.
The three things that set your subsidy
- Combined family income — sets the percentage of the fee that is subsidised.
- Activity test — recognised activity (work, study, volunteering, looking for work) sets how many subsidised hours per fortnight you receive.
- Hourly rate cap — the subsidy is calculated against the lower of your service's hourly fee or the government cap.
How to claim
- Create or sign in to your myGov account and link Centrelink.
- Complete the Child Care Subsidy claim, including your income estimate and activity details.
- Confirm your child's enrolment in myGov once the centre submits it — the subsidy cannot start until you do.
- Update your income estimate whenever your circumstances change to avoid a debt at balancing.
Why your gap fee changes
Families are often surprised when their out-of-pocket amount moves. The usual causes are a change in income estimate, a change in recognised activity, a child ageing out of a higher subsidy bracket, a fee change at the service, or absence days beyond the allowance.
Our centre managers can walk through an invoice line by line with you — it is a normal request, not an awkward one.
Frequently asked questions
Do I pay the subsidy and get reimbursed?+
No. The Child Care Subsidy is paid directly to your childcare service, and you are invoiced only for the remaining gap fee.
What happens if I do not confirm my enrolment in myGov?+
The subsidy cannot be applied and you will be charged the full fee until the enrolment is confirmed, so it is worth doing on the day you receive the notification.
Keep reading
Free Kinder in Victoria: what it covers and what it doesn't
How Free Kinder funding works inside long day care, what it covers, and why some families still see a daily fee.
How to choose a childcare centre in Melbourne's outer east
Ratings, ratios, fees and the 12 questions worth asking on every tour before you accept a place.
Want to talk it through in person?
Book a tour of our Bayswater or Mooroolbark centre and ask us anything.