CCS Calculator (Child Care Subsidy)

Child Care Subsidy (CCS) Calculator

The Child Care Subsidy (CCS) Calculator is a helpful online tool designed for Australian families to estimate their potential government subsidy for child care costs. The CCS is a means-tested financial support program provided by the Australian Government to help reduce the cost of early childhood education and care. By entering details such as family income, childcare type, hours of care, and activity levels (work, study, or volunteering), families can quickly receive an estimate of how much subsidy they may be eligible for and understand their likely out-of-pocket expenses.

The calculator uses the official CCS rates and guidelines, including the 2025 financial year rates, to provide an indicative subsidy amount paid directly to childcare providers, lowering the upfront fees families must pay. It also factors in higher subsidies available for younger children and multiple children in care. Although the calculator provides an informative estimate, actual subsidy amounts may vary based on exact personal information and circumstances.

This tool simplifies the complex CCS system, giving parents clarity on affordability and helping them plan childcare budgets effectively. It supports various types of childcare, including Centre Based Day Care, Family Day Care, and Outside School Hours Care.

For an accurate estimate tailored to individual circumstances, families can use the CCS Calculator as a practical starting point to navigate child care costs and government assistance efficiently.

What is a CCS Calculator?

A CCS Calculator is an online tool that estimates the amount of Child Care Subsidy a family may receive based on their circumstances. It calculates the subsidy percentage, subsidized hours, and out-of-pocket childcare costs by factoring in family income, activity levels, number of children, and childcare fees.

What Is the Child Care Subsidy (CCS)?

The CCS, introduced in July 2018, is a means-tested subsidy that replaced the Child Care Benefit (CCB) and Child Care Rebate (CCR). It provides financial assistance to families using approved childcare services, such as Centre Based Day Care, Family Day Care, Outside School Hours Care, or In Home Care. The subsidy is paid directly to childcare providers, reducing the fees families pay. Key features include:

• Purpose: Supports child development through early education and enables parents to work or study by reducing childcare costs.

• Eligibility: Families must meet residency, childcare responsibility, and child immunization requirements.

• Payment Structure: Covers a percentage of childcare fees (up to an hourly rate cap) based on family income, activity levels, and the number of children in care. A 5% withholding applies until end-of-year reconciliation.

How Is the Child Care Subsidy Calculated?

The CCS amount depends on three main factors, as outlined by Services Australia and childcare providers like Goodstart and Nido:

1. Family Income: The combined annual taxable income determines the subsidy percentage, which ranges from 0% to 90% (as of July 2025).

2. Activity Test: The number of hours of recognized activities (e.g., work, study, volunteering) determines the subsidized hours per fortnight.

3. Childcare Fees and Type: The subsidy covers the lower of the provider’s hourly fee or the government’s hourly rate cap, which varies by service type and child age.

Step-by-Step Calculation Process

To estimate your CCS using a calculator (e.g., Goodstart’s CCS calculator or the one at childcaresubsidycalculator.com.au), follow these steps:

Determine Recognized Activity Hours:

• Recognized activities include paid work, study, volunteering, or job searching.
• The parent with the lowest activity hours sets the family’s subsidized hours per fortnight:
• Less than 8 hours: 0 hours (or 24 hours if income ≤ $85,279).
• 8–16 hours: 36 hours.
• 16–48 hours: 72 hours.
• Over 48 hours: 100 hours.

Exemptions: From January 2026, the 3 Day Guarantee ensures at least 72 hours per fortnight (3 days/week) for all families, regardless of activity. First Nations children and preschool-aged children in approved programs may qualify for 36–100 hours without meeting the activity test.

Estimate Combined Family Income:

Include all taxable income (wages, government benefits, investments, child support) minus tax deductions.

• The subsidy percentage decreases as income rises:
• Up to $85,279: 90%.
• $85,279–$535,279: Decreases by 1% for every $5,000 above $85,279.
• $535,279 or more: 0%.

For multiple children (aged 5 or under), the second and younger children receive a higher subsidy rate, calculated separately.

Gather Childcare Information:

Obtain the hourly or daily fee from your childcare provider.

• Note the type of care (e.g., Centre Based Day Care) and the child’s age (affects rate caps).
• Hourly rate caps (as of July 7, 2025):
• Centre Based Day Care (below school age): $14.63/hour.
• Other services have different caps (e.g., Outside School Hours Care).

Calculate the Subsidy:

Hourly Subsidy = Subsidy Percentage × (lower of provider’s hourly fee or rate cap).

Weekly Subsidy = Hourly Subsidy × Hours per Week (up to subsidized hours).

Withholding: 5% of the subsidy is withheld until end-of-year reconciliation, adjustable via myGov.

Determine Out-of-Pocket Costs:

Out-of-Pocket Cost = Total Fees – (Subsidy – Withholding).

• Example: For a $14/hour fee, 90% subsidy, 12-hour session, 1 day/week:
• Hourly Subsidy = $14 × 90% = $12.60.
• Weekly Subsidy = $12.60 × 12 = $151.20.
• Withholding = $151.20 × 5% = $7.56.
• Subsidy Paid = $151.20 – $7.56 = $143.64.
• Out-of-Pocket = ($14 × 12 × 1) – $143.64 = $24.36/week.

Example Calculation for a Single Parent

For a single parent with one child, income of $80,000, 30 hours/week of work, and a childcare fee of $170/day (12-hour session, 3 days/week):

• Activity Test: 30 hours/week = 60 hours/fortnight → 72 subsidized hours/fortnight.

• Income Test: $80,000 < $85,279 → 90% subsidy.

• Hourly Fee: $170 ÷ 12 = $14.17 (less than $14.63 cap).

• Hourly Subsidy: $14.17 × 90% = $12.75.

• Weekly Subsidy: $12.75 × 12 hours × 3 days = $459.

• Withholding: $459 × 5% = $22.95.

• Subsidy Paid: $459 – $22.95 = $436.05.

• Out-of-Pocket: ($170 × 3) – $436.05 = $73.95/week.

Second Child Subsidy

For families with multiple children aged 5 or under, the second and younger children receive a higher subsidy rate, calculated using a separate income test. The eldest eligible child gets the standard rate, while younger siblings qualify for a higher percentage. Example: If the standard rate is 90%, the second child might receive up to 95%, depending on income. Use a “ccs second child calculator” to estimate this accurately.

Enter Family Details:

• Family type (e.g., single parent, couple).
• Number of children in care (1–10).
• Combined annual taxable income.

Hours of recognized activity per week for each parent (lowest hours apply for couples).

Input Childcare Details:

• Child’s age (affects rate caps).
• Type of childcare (e.g., Centre Based Day Care).
• Daily/hourly fees and hours/days per week.

Review Results:

• Estimated subsidy (weekly, quarterly, yearly).
• Out-of-pocket costs after withholding.
• Note: Results are estimates; actual amounts depend on accurate inputs and Centrelink assessment.

Check for Exemptions:

• Low-income families (≤ $85,279) get 24 hours/fortnight without activity test.
• First Nations children or preschool-aged children in approved programs may get 36–100 hours.

Note: Calculators are not affiliated with Centrelink and may not account for specific circumstances (e.g., Centrelink debts, assets test, or overseas residency). Contact Centrelink (136 150, 8am–8pm, Monday–Friday) for official assessments.

CCS Subsidy Levels (2025–2026)

Income Thresholds and Subsidy Rates (Effective July 7, 2025)

• Up to $85,279: 90% subsidy.

• $85,279–$535,279: Subsidy decreases by 1% for every $5,000 above $85,279.

• $535,279 or more: 0% subsidy.

• Multiple Children: Higher rates for second and younger children aged 5 or under, calculated separately.

Hourly Rate Caps (Effective July 7, 2025)

• Centre Based Day Care (below school age): $14.63/hour.

• Family Day Care: Varies (check Services Australia).

• Outside School Hours Care: Lower caps apply.

• In Home Care: Separate calculator required.

Subsidized Hours per Fortnight

• Less than 8 hours activity: 0 hours (or 24 hours if income ≤ $85,279).

• 8–16 hours: 36 hours.

• 16–48 hours: 72 hours.

• Over 48 hours: 100 hours.

• 3 Day Guarantee (January 2026): Minimum 72 hours/fortnight for all families; 100 hours for First Nations children or those meeting exemptions.

How to Claim CCS

1. Obtain a Customer Reference Number (CRN): Register with Centrelink.

2. Create/Link Accounts: Set up a myGov account linked to Centrelink.

3. Complete Assessment: Log into myGov, select “Services > Centrelink,” and complete the CCS assessment.

4. Submit Claim: Provide income estimates, activity details, and childcare information.

5. Confirm Enrolment: After enrolling with a provider, confirm via myGov to start payments.

6. Timing: Apply 6–8 weeks before care starts, as full fees apply until approved. Backdating is limited to 28 days.

FAQs

How much child care subsidy will I get?

Depends on your income, activity hours, and childcare fees. Use a CCS calculator (e.g., Goodstart or Nido) for an estimate. Example: A family with $80,000 income, 72 subsidized hours, and $14/hour fees may pay ~$73.95/week out-of-pocket for 3 days.

How do I calculate my child care subsidy?

Enter your family income, activity hours, and childcare details into a CCS calculator, or manually calculate using the formula: Subsidy = Subsidy Percentage × (lower of fee or rate cap) × Hours. Account for 5% withholding.

How is child care subsidy calculated for a single parent?

Same process, but only the single parent’s activity hours and income apply. Example: A single parent with $80,000 income and 30 hours/week work qualifies for 72 hours/fortnight at 90% subsidy.

What is the CCS second child calculator?

Calculates higher subsidy rates for second and younger children aged 5 or under, based on a separate income test. Check calculators like childcaresubsidycalculator.com.au for estimates.