Child Care Subsidy

What is the Child Care Subsidy and how does it affect your family?

Updated 23 October 2024


The Child Care Subsidy is income-tested and may result in a percentage of your child care costs being paid, depending on if you meet the set requirements as outlined below.


Eligibility for the Child Care Subsidy is based on the following:

  • The age of your child (must be 13 or under and not attending secondary school),
  • Must meet immunisation requirements for your child,
  • The parents or other eligible individual must meet the residency requirements listed in the legislation.


Please note that the parents or caregivers must be liable to pay for care provided and delivered here in Australia by an approved child care provider and not a compulsory education program.


The percentage of subsidy a family will be entitled to is determined on your combined annual income as shown in the table below.

Combined Family Income Subsidy Rate^
Up to $83,280 90%
Over $83,280 to below $533,280 Between 90% and 0% The percentage goes down by 1% for every $5,000 of income your family earns above $83,280..
$533,280 or more 0%

^Your Child Care Subsidy percentage is the amount they’ll subsidise. It will apply to either your hourly fee or the relevant hourly rate cap (whichever is lower).


The subsidy received is based on an estimate of income provided at the beginning of each financial year. Once all the tax returns for the family have been lodged, the actual subsidy is calculated resulting in either a refund or payment compared to subsidy received. The Government will withhold an amount of 5% of the subsidy to help reduce the likelihood of overpayment.


Now is a good time to consider your estate plan. It's an important part of your overall financial plan to protect the wealth you have accumulated for the benefit of your family now and into the future.

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Disclaimer
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.

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