Child Care Subsidy Changes in July 2018

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From 1 July 2018, The Government Child Care Subsidy makes early learning more affordable for many Australians. The below guide is provided to help break down the benefits for you and your family.

There are three means tests that will be applied to assess your eligibility for the Child Care Subsidy:

1.   Combined family income

The table below shows the percentage of child care fees the Government will contribute based on a family’s combined gross income:

Combined annual family income^ Subsidy rate
Up to $66,958 85%
Over $66,958  to under $171,958 Gradually reducing to 50%
$171,958  to under $251,248 50%
$251,248  to under $341,248 Gradually reducing to 20%
$341,248  to under $351,248 20%
$351,248  or more 0%

Families earning $186,958 or less per year are not subject to a cap on the amount of Child Care Subsidy they can access.

Families earning over $186,958 and under $351,248 have an annual cap of $10,190 per year per child.

 2.   How much the parents work per fortnight, based on the activity of the parent who works least

Step Hours of activity*Maximum number of hours of
subsidy per child*
1 8 hours to 16 hours 36 hours
2More than 16 hours to 48 hours 72 hours
3 More than 48 hours 100 hours

*Per fortnight

Recognised activities

A broad range of activities meet the activity test requirements, including:

  • paid work, including being self-employed or on leave (including paid or unpaid parental leave)
  • doing unpaid work in the family business
  • training courses for the purpose of improving the individual’s work skills or employment prospects
  • an approved course of education or study
  • volunteering
  • unpaid work experience or internships
  • actively setting up a business
  • actively looking for work.

Low income families with a combined annual income of $66,958 or less who do not meet and are not exempt from the activity test are entitled to 24 hours of subsided care per fortnight under the Child Care Safety Net.

 3.   The type of childcare service utilised

Kindergarten aged children are entitled to 36 hours to attend a kindergarten programme in an approved long day care service. No activities test required.

The new system will set an hourly cap on the Child Care Subsidy dependent upon type of care provided.

For more information regarding your Child Care Subsidy, please go to

Author: kidscape

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