What is the Child Care Subsidy (CCS)?

If you’ve started looking into childcare, you’ve probably come across the Child Care Subsidy (CCS) and wondered what it actually means for your family. After seeing some daily childcare fees, you’ll be relieved to hear that the CCS is a government payment that helps reduce the cost of approved childcare.

Rather than being paid directly to you, it works like a discount on your fees. The Government pays the subsidy straight to your childcare provider and your bill is reduced accordingly.

Who can get CCS?

 Most families using approved care will be eligible for some level of support. CCS is available to families who:

• are responsible for paying childcare fees
• have a child aged 13 or younger (who is not attending secondary school)
• use an approved childcare service

What costs does CCS cover?

CCS applies to fees charged by approved early childhood education and care services, including:

• long day care
• family day care
• outside school hours care (OSHC)
• in-home care (IHC)

These are the regular charges your service bills you for, such as daily or hourly fees. What’s included in those fees can vary between providers, so it’s always worth checking.

What isn’t covered by CCS?

CCS doesn’t apply to all childcare-related costs. Common exclusions include:

• non-approved care (e.g. nannies, babysitters, au pairs)
• enrolment or administration fees
• waitlist fees
• fundraising levies
• late pick-up fees
• optional extras (e.g. excursions, special programs, nappies if not included)
• additional support services (e.g. allied health services)

These costs are usually paid fully by families.

How does CCS reduce your childcare fees?

It’s paid directly to your provider

CCS isn’t paid into your bank account. Instead:

• the Government pays your provider directly
• your provider applies it as a reduction to your fees

What you see is a lower bill, not a separate payment.

What is the “gap fee”?

The gap fee is the amount you pay after CCS has been applied.

It’s the difference between: your service’s full fee and the subsidy you’re eligible for

Most families will still pay a gap fee, even with CCS.

Why does CCS exist?

CCS isn’t just about reducing fees - it’s designed to support families in a few key ways:

Supporting work and study

Affordable childcare makes it easier for parents and carers to:

• return to work
• increase working hours
• study or train

Helping with family finances

Childcare is one of the biggest expenses for many families. CCS helps make care more accessible, so families aren’t forced to choose between early childhood education and care and other essentials.

Supporting children’s early learning

Access to quality early learning supports children’s:

• development and social skills
• school readiness
• long-term learning outcomes

CCS helps more children access quality early education during those important early years.

Bringing it all together

The Child Care Subsidy (CCS) is designed to make childcare more affordable by reducing the amount families pay for approved services. It works as a discount on your fees, is paid directly to your provider, and helps support both families and children. While it doesn’t cover every cost, it can make a significant difference to your out-of-pocket childcare expenses.