Examples to help you understand your higher Child Care Subsidy

Find out how we assess your circumstances to apply your higher rate of Child Care Subsidy.

Everyone’s circumstances are a little different. These example show how the higher Child Care Subsidy may work for you.

Example 1 for how much you can get

Courtney has 2 children, Sam and Charlie, who attend child care 5 times a week. Courtney and her partner have a combined family income of $200,000 a year.

Sam is 4 years old and considered the ‘standard rate child’ because he is the eldest child. Charlie is 2 years old and is considered the ‘higher rate child’ because she is the youngest child.

Courtney will continue to get their standard 50% subsidy for Sam. This is based on her family’s income. Because Charlie is the ‘higher rate child’, she will get a 30% higher subsidy. This is a 30% increase on the standard subsidy, meaning Courtney will get an 80% subsidy for Charlie.

Example 2 for when your children attend on different days

Kevin’s children, Laura and Tabitha, go to child care on different days of the week. Kevin makes $344,305 a year.

Laura is 3 years old and considered the ‘standard rate child’ because she is the eldest child. Tabitha is 2 years old and is considered the ‘higher rate child’ because she is the youngest child.

Based on his income, Kevin will continue to get the standard 20% subsidy for Laura. For Tabitha, Kevin will get a 30% higher subsidy. This is a 30% increase on the standard subsidy, meaning he will get a 50% subsidy for Tabitha.

It doesn’t matter that Laura and Tabitha attend care on different days of the week. Kevin meets all of the other criteria for higher subsidy and therefore he is eligible for a higher rate for his second eligible child.

Example 3 for when children attend different child care centres

Luca has 2 children, Joseph and Gianni, who attend different child care centres. Luca and his partner have a combined family income of $254,305 a year.

Joseph is 5 years old and considered the ‘standard rate child’ because he is the eldest child. Gianni is 1 year old and is considered the ‘higher rate child’ because he is the youngest child.

Luca will continue to get the standard 50% subsidy for Joseph, based on his income. For Gianni, who is the higher rate child, he will get a 30% higher subsidy. This is a 30% increase on the standard subsidy, meaning Gianni will get 80% subsidy.

It doesn’t matter that Joseph and Gianni attend different child care centres. They meet all of the other criteria for higher subsidy. Therefore, Luca is eligible for a higher rate for his second eligible child.

Example 4 for when children attend the least number of days

Nadine and Waleed’s children, Zara and Assad, attend child care. Zara attends 2 days a week and Assad attends 3 days a week. Nadine and Waleed have a combined family income of $190,000 a year.

Zara is 2 years old and considered the ‘standard rate child’ because she is the eldest child. Assad is 1 year old and is considered the ‘higher rate child’ because he is the youngest child.

Zara is the standard rate child, which means Nadine and Waleed will continue to get the standard 50% subsidy for her. For Assad, the higher rate child, they will get a 30% higher subsidy. This is a 30% increase on the standard subsidy, meaning they will get an 80% subsidy for Assad.

It doesn’t matter that Assad attends more days than Zara. They meet all of the other criteria for higher subsidy. We’ll still assess Assad as the ‘higher rate child’ as he is younger and his parents will get the higher subsidy for his child care fees.

Example 5 for different types of approved care

Andy and Chris have 2 children, Sienna and Jules. Andy and Chris have a combined income of $175,015 a year. Sienna attends Outside School Hours Care. Jules goes to Centre Based Day Care.

Sienna is 5 years old and considered the ‘standard rate child’ because she is the eldest child. Jules is 3 years old and is considered the ‘higher rate child’ because she is the youngest child.

Andy and Chris will continue to get their standard 50% subsidy for Sienna. For Jules, they will get a 30% higher subsidy. There is a 30% increase on the standard subsidy, meaning they will get an 80% subsidy for Jules.

It doesn’t matter that Sienna and Jules attend different care types. They meet all of the other criteria for higher subsidy. We’ll therefore apply the higher subsidy to the youngest eligible child, regardless of the type of care they use.

Example 6 for the 95% cap

Nora has 2 children, Roberta and Corey, who attend child care. Nora makes $70,015 a year.

Roberta is 4 years old and considered the ‘standard rate child’ because she is the eldest child. Corey is 2 years old and is considered the ‘higher rate child’ because he is the youngest child.

Nora will continue to get the standard 85% subsidy for Roberta, who is the ‘standard rate child’.

There is a 30% increase on the standard subsidy for the ‘higher rate child’. However, we’ll cap a family’s percentage at 95%. This means for Corey, the ‘higher rate child’, Nora will get a 95% subsidy.

Example 7 for twins

Gus and Louise have 3 year old twins, Jack and Maggie, who attend child care. Gus and Louise have a combined income of $182,300 a year.

We automatically determined Jack as the ‘standard rate child’ and Maggie as the ‘higher rate child’.

For Jack, they will continue to get the standard 50% subsidy. For Maggie, they will get a 30% higher subsidy. This is a 30% increase on the standard subsidy, meaning for Maggie they will get an 80% subsidy.

It doesn’t matter that Jack and Maggie are twins born on the same day. They meet all of the other criteria for higher subsidy. We’ll automatically determine one child as the ‘standard rate child’ when working out your entitlement for higher Child Care Subsidy. We can change the automatic ordering of children born on the same day, if required. You should contact the Centrelink families line us to request this.

Example 8 for child turning 6

Sonam and Dechen have 2 children, Oliver and Ava, who attend child care. Sonam and Dechen have a combined income of $130,000.

Oliver goes to Outside School Hours Care. Ava goes to Centre Based Day Care.

Oliver is 5 years old and considered the ‘standard rate child’ because he is the eldest child. Ava is 2 years old and is considered the ‘higher rate child’ because she is the youngest child.

Sonam and Dechen get the standard subsidy for Oliver and 30% higher subsidy for Ava. For Oliver they get a 65% subsidy and for Ava they get 95%.

Oliver is about to turn 6. After he turns 6, the family will no longer get a higher subsidy for Ava. They will get a 65% subsidy for each of their children.

Example 9 for combined families

Rani and Tavish are in a combined family where they each have children from past relationships. Between them, they have 3 children aged 5 and under. Rani has 2 children, Lila and Nathan. Tavish has one child, Kiara. Rani and Tavish have a combined income of $120,000.

Lila is 5 years old and is considered the ‘standard rate child’ because she is the eldest child in the family. Nathan and Kiara are both 3 years old and are considered the ‘higher rate children’ because they are younger than Lila.

We’ll automatically assess Rani and Tavish as a combined family.

If you’re in a combined family, you can read more about how higher CCS will apply to you.

Page last updated: 17 August 2022