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Subsidy
Understanding the Child Care Subsidy (CCS): A Simple Guide for NSW Families
INTRO
The Child Care Subsidy (CCS) is the Australian Government’s main form of financial assistance for families using approved childcare. For many families, it makes a significant difference to the weekly gap fee they pay. Yet despite its importance, CCS remains one of the most misunderstood aspects of choosing childcare in Australia.
This guide breaks it down in plain English.
What is the Child Care Subsidy?
The CCS is a percentage of your childcare fee that the Australian Government pays directly to your childcare centre on your behalf. You pay the remaining amount, called the gap fee, each week.
For example, if your centre charges $150 per day and your subsidy rate is 80%, the government pays $120 and your gap fee is $30. The exact percentage depends on your family’s income and your activity level (work, study, or training hours).
Who is eligible for CCS?
To receive the Child Care Subsidy, your family must meet three conditions:
- Your child must be enrolled in an approved childcare service (all Hand in Hand centres are approved providers)
- Your child must be up to date with immunisations as per the Australian Immunisation Register
- At least one parent or guardian must meet the activity test, which means working, studying, training, volunteering, or actively looking for work
How much subsidy will I receive?
Your CCS percentage is primarily determined by your family’s combined annual income:
Combined Family Income | Approximate CCS Rate |
Up to $83,280 | 90% |
$83,280 to $533,280 | Tapers from 90% down to 0% |
Above $533,280 | Not eligible (generally) |
These income thresholds are reviewed by the government periodically. The CCS calculator on the Services Australia website (servicesaustralia.gov.au) is the most accurate tool to estimate your specific rate.
What is the activity test?
The activity test determines how many hours of subsidised care you can receive per fortnight. It is based on the lower-earning parent’s activity hours:
Activity Hours Per Fortnight | Subsidised Hours Per Fortnight |
8 to 16 hours | 36 hours |
16 to 48 hours | 72 hours |
48+ hours | 100 hours |
Families experiencing certain hardship circumstances may be exempt from the activity test. Speak with our team or contact Services Australia if you think this may apply to you.
How do I apply for CCS?
- Create or log in to your myGov account at my.gov.au
- Link your myGov account to Centrelink if you have not already done so
- Navigate to ‘Apply for Child Care Subsidy’ under Centrelink
- Provide your income details, activity information, and your child’s details
- Once approved, notify your childcare centre and they will handle the rest
How does it work in practice at Hand in Hand?
When you enrol at Hand in Hand Early Learning Centres, our admin team will help you understand your CCS entitlement and confirm that your claim is set up correctly before your child’s first day. You will receive a weekly statement showing the gross fee, the CCS applied, and your gap fee. We serve families across South Wentworthville, Wentworthville, Westmead, Merrylands, and Parramatta now, and will be welcoming families in Narellan, Camden, Mount Annan, St Marys, Kingswood, and Werrington when our new centres open in mid-2026.
Ready to take the next step?
Speak with our team today about fees, CCS, and how to secure your child’s place at Hand in Hand.
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