Child Care Subsidy 2025–26: A Parent’s Guide
We understand that applying for childcare benefits (CCS) can be a bit confusing at first. That’s why we’ve put together this simple guide — to walk you through the process and give you the confidence that everything is in place for your child’s early learning journey.
What is the Child Care Subsidy?
The Child Care Subsidy (CCS) is the main way the Australian Government helps families with the cost of early learning and care. Introduced in 2018, CCS provides financial support to families using Early Childhood Education and Care (ECEC) services, including Long Day Care, Before and After School Care, and Vacation Care. Payments are made directly to your child’s centre, and families simply pay the gap between the fee charged and the subsidy received. The amount of support you receive depends on your family’s circumstances, such as income and recognised activity hours. The Government’s goal is to ensure that every family can access high-quality, affordable early learning. CCS makes this possible by easing the cost of care and supporting families to give their children the very best start in life.
How does it work?
Although applying for the Child Care Subsidy might feel a little overwhelming at first, the process is quite straightforward. Once your family’s eligibility is confirmed, the subsidy is paid directly to your child’s centre, reducing your fees straight away. In practice, this means the Government covers a portion of your childcare fees, and your family pays the remaining gap. The level of support depends on your circumstances, including the outcome of the activity test. From January 2026, this will become even simpler. Every child will be guaranteed at least three days (72 hours per fortnight) of subsidised early learning and care, no matter how many recognised activity hours their family undertakes. If you’d like a clearer picture, the video below from Services Australia gives a helpful step-by-step explanation of how it all works.
Eligibility for Child Care Subsidy (and Higher CCS)
Before you can submit an application for child care benefits, you will need to check your child care subsidy eligibility.
For parents or partners claiming CCS:
If you’re looking for guidance with the Child Care Subsidy or seeking trusted early learning for your child, Journey is here to support you. Our mission is to give every child the very best start in life. Through our play-based learning approach, we create fun, engaging, and meaningful experiences that nurture curiosity, confidence, and growth.
Each of our centres is led by a dedicated Centre Management Team, working alongside passionate educators to create a safe, supportive, and inspiring environment. We understand that starting childcare or kindergarten can feel like a big step, and our warm, welcoming team is here to walk alongside you — supporting both you and your child on every stage of the journey.
We are on hand to guide you through the entire process, from our Child Care Subsidy calculator to help you through your child’s first day.
Want to find out more? Find your local Journey Early Learning centre here, check out our Parents FAQ or get in touch with our team today.
You must meet the Australian residency requirements
You need to be liable to pay childcare fees under a Complying Written Arrangement with your chosen provider
For children:
- They must be 13 years or younger and not attending secondary school (there are some exceptions to this rule in special cases)
- They must meet current vaccination requirements
And for families who may receive a higher subsidy:
- You get or will be eligible for CCS
- Your family’s combined income is under $367,563
- You have more than one child aged five or younger in childcare.
CCS rates for higher-rate children:
Learn more about how the calculation works in examples of various circumstances.
Alongside the standard Child Care Subsidy (CCS), some families may also be able to access extra help through the Additional Child Care Subsidy (ACCS). To receive this, you first need to be eligible for CCS.
ACCS is designed to give additional support to families who need it most. You may qualify if you are:
A grandparent caring for your grandchild
Experiencing temporary financial hardship
Transitioning from income support to work
Caring for a child who is vulnerable or at risk
Please go to the Government Services Australia website for more information.
Activity test
Right now, the number of hours of subsidised care your family receives depends on the hours of recognised activity you do. From January 2026, this will change for the better. Every child will be guaranteed at least three days (72 hours per fortnight) of subsidised early learning and care – no matter your family’s activity level. It means more time to learn, play, and grow in a nurturing environment, surrounded by friends and supported by caring educators.
Child Care Subsidy Income Test 2025-26 Family’s combined annual income
The Australian Government will subsidise a percentage of a family’s childcare fees or the hourly rate cap, whichever is lower. The amount the government subsidises is based on a family’s combined annual income.
- The maximum CCS rate is 90% for families earning $85,279 or less.
- Families earning between $85,279 and $535,279 receive a percentage between 90% and 0%. The rate decreases by 1% for every $5,000 of income a family earns
- If the family’s combined income $535,279 or more, there will be no subsidy.
Learn more about CCS payment Australia: how your income can affect the CCS payment.
To help you work out how much money you could be saving with your application for childcare benefits, we have put together a unique Child Care Subsidy calculator.
How to apply for Child Care Subsidy benefit?
To make the process as easy as possible, we advise good preparation. Because then it is relatively easy.
Getting Started: MyGov, CRN, and Immunisation History
Before applying for the Child Care Subsidy, there are a few simple steps that may be required. You might already have these in place, but for families who are new to the process, here’s what you’ll need:
Create a MyGov account – If you don’t already have one, you can set it up online.
Find your CRN (Customer Reference Number) – If you don’t know it, you can follow the steps in myGov:
Sign in to myGov
Select Link Centrelink
Choose I don’t have or don’t know my CRN → Continue
Select I want to prove my identity through myGov → Continue
Have two forms of ID and your Medicare card ready to complete the process
Check your child’s immunisation history – This needs to be up to date, as the Child Care Subsidy cannot be paid without it.
These steps help make sure everything is ready for your CCS application, so your child’s early learning journey can begin smoothly.
Preparation to Apply for the Child Care Subsidy (CCS)
To make your application as smooth as possible, it helps to have the following details and documents ready:
Your myGov login
Your CRN (Centrelink Customer Reference Number)
Your TFN (Tax File Number)
Your child’s birth certificate
Proof of family income (or, in some cases, an employment separation certificate)
If you are studying, the required student documents
Medical records, if relevant
This list covers the most common information you’ll need. In some cases, Centrelink may ask for additional documents. These can be uploaded easily through your Centrelink online account or the Express Plus Centrelink mobile app. Check out the Child Care Rebate Form online.
How to apply for CCS (Child Care Subsidy)
- Log in to your MyGov account and navigate to Centrelink.
- Next select Payments and Claim -> Claims -> Make a claim
- Navigate to Families and then click on Get Started.
- Fill out all the required information, upload all the necessary documentation, and click Submit.
Please note that the Child Care Subsidy process can take up to 6 weeks to gain approval.
Start Your Journey Today
If you’re looking for guidance with the Child Care Subsidy or seeking trusted early learning for your child, Journey is here to support you. Our mission is to give every child the very best start in life. Through our play-based learning approach, we create fun, engaging, and meaningful experiences that nurture curiosity, confidence, and growth.
Each of our centres is led by a dedicated Centre Management Team, working alongside passionate educators to create a safe, supportive, and inspiring environment. We understand that starting childcare or kindergarten can feel like a big step, and our warm, welcoming team is here to walk alongside you — supporting both you and your child on every stage of the journey.
We are on hand to guide you through the entire process, from our Child Care Subsidy calculator to help you through your child’s first day.
