Understanding how the Childcare Subsidy (CCS) works can make a meaningful difference to the cost of early learning for your family. The CCS is a government payment designed to help reduce the cost of approved childcare, making high-quality early education more accessible for Australian families. The subsidy is paid directly to your childcare provider, which lowers your out-of-pocket fees each week.
How much support you receive depends on key factors, including your family’s income, your child’s age, and the number of hours you spend working, studying, volunteering or completing other recognised activities. To be eligible, you’ll need to meet basic residency, enrolment and immunisation requirements. Families experiencing tougher circumstances may also qualify for the Additional Childcare Subsidy for extra support.
For Perth families choosing Cuddles Early Learning & Childcare, understanding the CCS can help you make confident, cost-effective decisions about your child’s care.
If you are comparing options, also understanding childcare costs in Perth alongside the CCS can help you plan more confidently.
What Is the Child Care Subsidy?
The Childcare Subsidy helps families cover the cost of child care at an approved child care service. Its purpose is to make childhood education and care more accessible, enabling parents to work, study or volunteer while children enjoy high-quality early learning.
Your CCS is calculated based on your family’s income, your activity level and the hourly rate cap set by the Australian Government. Families with a lower income receive a higher percentage, and those with more than one child aged under five may receive a higher subsidy for their second and younger children.
Families often explore the CCS when deciding when to start childcare and how to structure care around work commitments.
How CCS Is Paid
The CCS is paid directly to your childcare provider, which reduces your invoice and leaves you to pay the remaining gap. This system helps families manage child care costs more easily throughout the financial year.
What Costs CCS Can Cover
You can use CCS for several types of approved child care, including:
- Long day care, such as the early learning programs at Cuddles Early Learning & Childcare
- Before and after school care
- Approved early learning and kindergarten programs
If your child is enrolled at an approved childcare provider, CCS can significantly reduce your weekly child care fees.
How to Apply for the Childcare Subsidy
Applying for CCS is a simple application process, but having the right information ready will help you avoid delays and ensure your child’s enrolment is subsidised from the beginning.
Before You Apply
Before lodging your claim, make sure you have:
An active or new myGov account linked to Centrelink
To claim online, you must have a myGov account connected to your Centrelink online account. New users may need to confirm personal details, verify identity and receive a Customer Reference Number (CRN).
Required documentation
- Proof of identity
- Income support payments information or payslips
- Residency or visa documents
- Your child’s immunisation requirements status
- Other documents if applying for the Additional Childcare Subsidy (ACCS)
Step-by-Step Application Process
1. Log in to myGov and start your CCS claim: Go to Centrelink → Payments and Claims → Make a Claim → Families → Get Childcare Subsidy.
2. Provide your family details: Enter information about your child, your relationship status and any shared-care arrangement.
3. Enter income and activity information: Your family’s income estimate and recognised activity determine your CCS entitlement and childcare subsidy percentage.
4. Submit your claim: Centrelink may request other documents if needed.
5. Confirm your childcare enrolment: This is one of the most common areas where eligible families experience delays.
After submitting your claim, your service sends an enrolment notice. You must log in again and confirm it, or your new claim will remain inactive.
6. Wait for approval: Processing times vary, and until approval, you must pay full fees.
Avoid These Common Delays
Several issues can slow down CCS approval:
- Incorrect income estimates: Update if your circumstances change.
- Missing documents: Without these, Centrelink cannot finalise your claim.
- Not confirming the enrolment: CCS cannot start until this step is completed.
By preparing early and following each stage, your subsidy will be active when your child starts at an approved childcare service.
Who Is Eligible for the Childcare Subsidy?
Basic Eligibility Requirements
Additional Eligibility for Higher Support (ACCS)
Families may receive additional support if they meet specific criteria, including:
- Temporary financial hardship
- Grandparent or guardian care
- Risk of abuse or neglect (ACCS – Child Wellbeing)
ACCS helps families maintain access to childcare support during challenging times.
How the CCS Is Calculated (Income, Hours & Child Age)
Your CCS entitlement is determined by your family income, recognised activity hours, and the type of care your child receives. These factors work together to calculate your subsidy amount and approved hours.
Family Income Test
The family’s income determines your childcare subsidy percentage.
Key points:
- Lower-income families receive the highest subsidy.
- As income increases, the percentage decreases.
- For every $5,000 above the threshold, CCS decreases by 1%.
Families with more than one child under 5 years old may receive a higher subsidy for younger children at the same service or different ones.
Activity Test (Until January 2026)
Your activity hours determine subsidised care hours.
Recognised activities include:
- Paid work
- Self-employment
- Study or training
- Volunteering
- Job-seeking
- Unpaid work in a family business
Aboriginal and Torres Strait Islander children receive at least 36 hours of subsidised care, regardless of activity.
From January 2026, the new childcare subsidy settings replace the activity test with a guaranteed minimum.
Type of Care Used
Your care type affects your subsidy because each has a different hourly rate cap:
- Long day care
- Family day care
- In-home care
- OSHC programs
Centrelink combines these factors to determine your CCS entitlement.
How Many Hours of Subsidised Care Can You Access?
The hours you can access depend on your activity level and eligibility. The current system applies until the 3-Day Guarantee begins in January 2026.
0–100 Hours of Subsidised Care (Current System)
Families may receive:
- 24–36 hours for low activity
- 72–100 hours for higher activity
- At least 36 hours for Aboriginal and Torres Strait Islander children
Use the Childcare Subsidy Calculator on MyGov to estimate your hours.
New 72-Hour Minimum (Starting 2026)
From 2026, all eligible families will receive 72 hours of subsidised care per fortnight, which is about three days.
What this means for Perth families: More stable access to childcare support, especially for part-time, casual or gig workers.
Why this improves accessibility: Hours won’t fluctuate due to changes in activity levels, giving families predictable access to early childhood education.
How Cuddles supports flexible booking: Cuddles offers flexible bookings so families can make the most of their subsidised hours. With demand rising, early enrolment is encouraged.
Interested in Applying for The Childcare Subsidy in Perth? Contact Cuddles Early Learning & Childcare Today!
Understanding the Childcare Subsidy can make early learning far more affordable, especially when you know how eligibility, income, activity levels and care types influence your support. Whether you’re accessing standard CCS or may qualify for the Additional Childcare Subsidy, getting the right guidance ensures your child can enjoy high-quality early education with reduced out-of-pocket costs.
If you’re ready to begin the process or want help navigating your CCS claim, the team at Cuddles Early Learning & Childcare is here to support you every step of the way. Reach out to us today to secure a place and make the most of your eligible subsidised hours.