Maximising Your Child Care Subsidy: A Parent’s Guide
Child care is one of the most important investments you can make for your child’s future. The Australian Government’s Child Care Subsidy (CCS) is designed to make quality early education more affordable — but understanding how to maximise it can sometimes feel confusing. At Sprouts Early Learning, we want families to feel confident about accessing every benefit available to them.
What’s New for 2025–26?
Great news! The government has announced changes to the Child Care Subsidy for the new financial year, effective from 7 July 2025. These updates mean more families will qualify, and many will pay even less out of pocket.
For the 2025–26 financial year:
- Families earning up to $535,279 may now qualify for CCS.
- Families earning below $85,279 receive a 90% subsidy, significantly lowering the cost of care.
- Families earning under $367,563 with more than one child could receive a higher subsidy — up to 95% for younger children.
- The hourly cap has increased to $14.63, further reducing gap fees for many families.
- Additional preschool and kindergarten subsidies are available for children aged 3–5 years attending a government-approved program.
These changes make it easier than ever for families to access quality early learning at our centres.
Extra Support for First Nations Families
Aboriginal and Torres Strait Islander children are entitled to at least 36 hours of subsidised care per fortnight, regardless of their family’s activity level. Families simply need to let Services Australia know that their child identifies as Aboriginal and/or Torres Strait Islander.
Even more exciting, from 1 January 2026, the government plans to expand this support to 100 hours per fortnight, giving First Nations families even greater access to early education.
This is part of the national Closing the Gap commitment to ensuring every child has the best possible start in life.
1. Keep Your Family Income Estimate Updated
Your CCS entitlement is based on your combined family income.
- If your income goes up or down, update your estimate promptly through myGov.
- Underestimating income may lead to a debt later; overestimating may mean you miss out on extra subsidy now.
Tip: Review your estimate every few months or after big changes like a new job, bonus, or reduced hours.
2. Know Your Approved Hours
The number of subsidised hours you receive is linked to your activity level (work, study, volunteering, job seeking, caring for another child).
- For most families, both parents’ activities are considered.
- Even casual or flexible work counts — so make sure you record all eligible activities.
Tip: If your activity increases, update Centrelink straight away so you can access additional subsidised hours.
3. Take Advantage of Higher CCS for Multiple Children
Families with more than one child under 5 in care may be eligible for a higher CCS rate for younger children.
- This can make a significant difference to weekly out-of-pocket costs.
Tip: Check your Centrelink app to see if the higher rate has been applied automatically.
4. Plan Your Bookings Strategically
- Match your child’s bookings to your approved CCS hours to avoid unnecessary gap fees.
- Use make-up or casual days (when available) to get the most out of your subsidy.
5. Talk to Us — We’re Here to Help!
Every family’s situation is unique. At Sprouts Early Learning, we’re more than happy to:
- Help you understand your entitlements,
- Provide statements for Centrelink, and
- Work with you to make care as affordable as possible.
Because every dollar saved means more opportunities for your child to grow, learn, and thrive.
Child Care Subsidy is there to support families — and with a little planning, you can make sure you’re getting the most from it. The 2025–26 updates — together with dedicated supports for First Nations families — make quality early learning more accessible than ever.
If you’re ever unsure, ask our team for guidance or visit Services Australia’s CCS page
