What is the child care subsidy?

The childcare subsidy is assistance offered by the department of human services to help with the cost of childcare. Childcare subsidy is paid directly to providers to reduce the fees you pay. There is also an additional child care subsidy which can provide extra support for some families. This includes grandparents and great-grandparents, families moving from an income support payment to work and those experiencing temporary financial hardship.

According to human services, you may be eligible if you or your partner meet all of the following requirements:

  • Care for your child at least 2 nights per fortnight, or have 14% care
  • Are liable for fees for care provided at an approved child care service
  • Meet the residency rules as outlined by the department of human services


Your child must also meet both of these:

  • Immunisation requirements as outlined by the department of human services
  • Not be attending secondary school unless an exemption applies


How much can I get?

To work out how much Child care subsidy you’re eligible for, the department of human services will look at all of the following:

  • Your family’s income
  • The hourly rate cap based on the type of approved child care you use and your child’s age
  • The hours of activity you and your partner do

When calculating you’re the subsidy based on your income, the department of human services will provide a tiered system based on how much money your family earns per annum. You can find out more by going to the human services website.


What about the recent changes?

In July 2018, the Turnbull Government introduced a new childcare package with some changes to the previous system. The main change which was introduced was the change of the annual cap. Before July 2018, there was an annual cap of $7613 on the amount that families earning under $186,958 could claim on childcare. Now with the new rules, the cap for families who earn under $186,958 has been removed and a new annual child care subsidy cap of up to $10,190 has been introduced for families who earn more than $186,958 yet less than $351,248. These new changes should allow for better accessibility to childcare for more Australian families and should relieve the pressure which families used to feel near the end of the financial year due to the old cap on the child care subsidy.


Where can I get more information?

All information about the child care subsidy can be found within the department of human services website.

You must be logged in to post a comment.