Children are the future gems of a country, and the Australian government has already recognized their importance as assets for the future. Taking care of them becomes vital for the government. Therefore, they have launched the Childcare benefits to ensure that all parents can provide their children with better health and education.
Going through the world of child care support in Australia can be daunting, especially for permanent residents who have just settled in this beautiful country.
This guide will walk you through everything you need to know about child care benefits, focusing on the Child Care Subsidy (CCS) and other important support schemes. Whether you’re a new parent or looking to switch child care services, you’ll find easy applicable tips and answers to common questions right here.
🧒 Child Care Support in Australia for Permanent Residents
Australia aims to provide strong and safe benefits for families, where permanent residents and citizens can access extensive child care support. The central part of this support is the Child Care Subsidy (CCS), a government payment designed to make child care more affordable.
🤔 What is the Child Care Subsidy (CCS)?
The CCS helps families with the cost of approved child care so parents can work, study, or volunteer. It pays a percentage of child care fees, directly reducing additional expenses for families.
| 💡 Benefit | 🧒 What It Means for You | 💬 Why It Matters |
| 💸 Reduced Out-of-Pocket Costs | CCS is paid directly to the provider. You only pay the gap fee (what’s left after subsidy).Some families get up to 90% off! | Huge savings, less upfront cost makes child care more affordable day-to-day. |
| 🏡 Increased Affordability for Families | Helps cover a large chunk of your child care expenses. | Eases pressure on your family budget, especially with rising living costs. |
| 📘 Better Access to Early Learning | More kids can attend quality child care thanks to lower costs. | Early education boosts development and school readiness. Long-term gains for your child! |
| 👩💼 Supports Parents in Work & Study | Based on the activity test, your subsidy increases with hours worked, studied, or volunteered. | Encourages workforce participation and up skilling, while your child is well cared for. |
| 🛡️ Extra Help for Vulnerable Families (ACCS) | For those needing more support beyond standard CCS:• 🧒 Child at Risk: Full fee coverage• 👵 Grandparent Carers: Extra help if receiving income support • 💔 Financial Hardship: For sudden stress like illness/job loss• 👩🎓 Transition to Work: More hours and higher rate when starting work or study | Tailored support when life gets tough, so child care doesn’t fall off the list of priorities. |
| 🔄 Flexible Child Care Options | Applies to: • 🏫 Long Day Care• 🏠 Family Day Care• 🕔 Outside School Hours Care • 🛏️ In Home Care | Choose care that suits your lifestyle, before/after school, home-based, or full-day. |
| 👶 Higher Subsidy for Younger Siblings | Got more than one child aged 5 or under in care?The second (and any younger) child gets a higher CCS rate. | Makes care more affordable for bigger families. |
👨👩👧👦 How Much Child Care Subsidy (CCS) Can You Get?
| 🧩 Factor | 💬 What It Means | 💡 How It Impacts You |
| 💵 Combined Family Income | CCS % is based on your yearly income. | The less you earn, the more you get. It starts at 90% subsidy and tapers off with higher income. |
| 🔹 Up to $85,279 | Get the maximum 90% subsidy on hourly rate. | Best support for lower-income families. |
| 🔹 $85,280 – $535,278 | Subsidy drops 1% per $5,000 over $85,279. | As income rises, your CCS % gently reduces. |
| 🔹 $535,279+ | CCS usually drops to 0%. | No subsidy, but you can still use approved child care services. |
⏱️ Activity Test — Determines Your Subsidised Hours per Fortnight
The Activity Test is how the Australian Government works out how many hours of subsidised child care you’re eligible for each fortnight. It’s not about how much you earn, but about how much recognised activity you (and your partner) do.
✅ Recognised Activities Include:
| ✔️ Activity Type | 💬 Examples |
| Paid Work | Full-time, part-time, casual, self-employed |
| Study or Training | Accredited courses, university, TAFE |
| Volunteering | Community work, school canteen, charity work |
| Job Hunting | Actively applying for jobs or attending interviews |
| Unpaid Work in Family Business | Helping in a family store, farm, etc. |
| Paid/Unpaid Leave | Annual, parental, or sick leave (as long as you return to work later) |
⏱️ Hours of Activity = Hours of Subsidised Care (Per Fortnight)
| 🏃♀️ Activity Level (Lower of Two Parents) | ⌛ Hours of Subsidized Care / Fortnight | 💡 What This Means for You |
| Less than 8 hrs/week | ❌ 0 hrs (if income > $85,279)✅ 24 hrs (if income ≤ $85,279) | No support for low activity unless your income is also low. |
| Aboriginal/Torres Strait Islander child | ✅ 36 hrs, no matter the activity | Special support to promote cultural inclusion and access. |
| 8–16 hrs/week | ✅ 36 hrs | Part-time workers or volunteers still get decent support. |
| 16–48 hrs/week | ✅ 72 hrs | Most working parents fall in this range. |
| Over 48 hrs/week | ✅ 100 hrs | Best for full-time workers or double-income households. |
🏫 Hourly Rate Caps by Child Care Type (2025–26)
| 🏷️ Care Type | 👶 Under School Age | 🎒 School Age | 💬 What’s Covered |
| Centre-Based Day Care (Long Day / Occasional) | $14.63/hr | $12.81/hr | CCS covers up to this rate or the fee charged, whichever is lower. |
| Outside School Hours Care (Before/After/Vacation) | $14.63/hr | $12.81/hr | Good option for working parents needing extended care. |
| Family Day Care | $13.56/hr | $13.56/hr | More flexible home-based option for young kids. |
| In Home Care (per family, not per child) | $39.80/hr | $39.80/hr | Ideal if no other options suit your circumstances (remote, complex needs, etc.). |
👶👧 Extra Help for Families With More Than One Child in Care
| 👨👩👧👦 Your Situation | 📈 What You Get | 💬 Why It’s Helpful |
| 2+ kids aged 5 or under in care | Higher CCS rate (up to 95%) for second and younger kids | Great support for growing families juggling multiple fees. |
| 🔹 Income up to $143,273 | ✅ 95% subsidy for younger kids | Maximum support, pays most of the child care bill. |
| 🔹 $143,274 – $367,562 | 🔻 Tapered rate applies | Still generous, just scaled back. |
| 🔹 $367,563+ | ❌ Higher rate not available | All kids fall back to the regular CCS rate. |
📝 Note: The subsidy is not a cash payment. It’s applied directly to your child care provider, and you only pay the “gap fee” (what’s left after the subsidy).
🙋♂️ Eligibility Criteria for Australian Permanent Residents
As a permanent resident, you generally have access to CCS, as well as several other government benefits. To get eligible for the Child Care Subsidy, you must meet the following conditions:
- Hold an approved permanent residency visa and not a temporary visa.
- Taking responsibility for paying the child care fees.
- Use an approved child care service.
- The child must meet immunisation requirements.
🏠 Residency Requirements for CCS
Eligibility for CCS includes meeting residency requirements. You or your partner must be:
- An Australian citizen, or
- The holder of a permanent visa, or
- The holder of certain temporary visas (like a Special Category Visa, or nominated protected visa holders).
Both you and your child must reside in Australia.
💉 Immunization Requirements for Your Child
To receive CCS, your child’s immunisations must be up-to-date according to the National Immunisation Program Schedule, or you must be on a genuine catch-up schedule. It ensures your child is protected and covered for subsidies.
👶 Age Limits for Children in Care
The subsidy is available for children who are 13 years of age and under and not attending secondary school. Children with disabilities or special needs are exempted and are allowed to continue receiving support in certain circumstances.
⚕️ Approved Child Care Services: What Qualifies?
Only certain types of child care are approved for CCS, including:
- Long day care (child care centres)
- Family day care
- Outside school hours care (before and after school care)
- Occasional care
Children in care with unapproved providers (such as babysitters or nannies not registered with the government) do not qualify for the subsidy.
💫 Step-by-Step Guide: How to Apply for the Child Care Subsidy
- Please set up a myGov account and link it to Centrelink.
- Submit a CCS claim online through your myGov account.
- Provide required documentation (proof of residency, income, activity, and your child’s immunisation status).
- Once approved, inform your child care service so they can confirm your child’s enrollment.
Pro tip: Keep your details and income estimates up-to-date in your myGov account to avoid payment issues or debts later.
✨ Beyond CCS: Other Potential Benefits for Permanent Residents
Permanent residents might also qualify for:
- Family Tax Benefit: help with the additional cost of raising children.
- Parenting Payment: For single parents or partnered parents on lower incomes.
- Additional Child Care Subsidy (ACCS): For families facing special circumstances, like low income, temporary financial hardship, or at risk of family violence.
🧐 Most Commonly Asked Questions about CCS
❓ Q1. What if my child misses immunisations?
✅ You’ll need to catch up on immunisations before you can continue claiming CCS.
❓ Q2. Can both parents work part-time and still get CCS?
✅ Yes! The activity test accounts for combined recognised activities, including job hunting.
❓ Q3. Why doesn’t my full child care bill get covered?
✅ It could be due to hourly rate caps, income level, or not meeting activity criteria.
❓ Q4. What if my visa status changes?
✅ Changes in residency or immigration status must be reported; it could impact your CCS eligibility.
🏴 Conclusion
As a permanent resident in Australia opens the door to substantial child care support. The Child Care Subsidy is a foundation of this support, helping families to manage the costs of quality care while balancing work, study, and family life.
It is important to understand the eligibility rules and steps to apply, as we have discussed in this guide, to make the most of the available benefits for your child’s bright future.