Child Care Subsidy

There has been an increase in the Child Care Subsidy. This means for the majority of families, child care costs will become more affordable.
New Child Care Subsidy


More Affordable Childcare

In July 2023, the Australian government announced an increase in the Child Care Subsidy. As such, childcare costs were reduced for most families. Additionally, some families who were previously ineligible for the Child Care Subsidy will now be able to benefit from it.

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The Child Care Subsidy Changes

What's Included

In June 2023, there was a significant change in the Child Care Subsidy. This provided increased support and affordability for families across Australia. Here are the key updates:

  • The income limit to qualify for the Child Care Subsidy is increasing from $356,756 to $530,000 per annum.
  • The maximum amount of the Child Care Subsidy is increasing from 85% to 90%. This higher subsidy rate will help alleviate child care costs for eligible families.
  • Families earning $80,000 or less will receive a Child Care Subsidy rate of 90%. This ensures that families with lower incomes receive significant support to access affordable child care.
    Families earning over $80,000 may still be eligible for a Child Care Subsidy rate starting at 90%. However, this rate will decrease by 1% for every $5,000 of income earned above $80,000. The subsidy rate reaches 0% for families earning $530,000 or more.
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  • Families earning below $362,408 and having more than one child aged 5 or under in care can still receive a higher subsidy rate for one or more of their children.
  • Aboriginal and/or Torres Strait Islander children will be eligible for at least 36 subsidised hours of early childhood education and care per fortnight, regardless of their family’s activity level.

These changes, effective from 1st July 2023, reflect amendments to the Family Assistance Law. From 10th July onwards, families can expect to see an increase in the Child Care Subsidy, bringing support for child care expenses and greater financial relief.


Need More Information?

Learn More About the Subsidy

We are committed to ensuring the thriving development of your children through lifelong learning.

If you are a new family looking to find out more about how to enrol and learn more about your possible entitlements, please contact our Tribe Early Learning team.

Further information about CCS can also be found on the Services Australia website at

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