Finding quality childcare in Victoria can be expensive, but the Child Care Subsidy (CCS) helps make early education more affordable for Australian families. If you’re a parent struggling with the cost of childcare, this comprehensive guide will walk you through everything you need to know about the application process, eligibility requirements, and maximising your benefits.
What is Child Care Subsidy (CCS) and How Does It Work?
The Child Care Subsidy (CCS) is the Australian Government’s way of helping families afford quality childcare. Think of it as the government paying a portion of your childcare fees directly to your childcare provider, so you only pay the difference. According to the Australian Government Department of Education, this system was designed to make early childhood education accessible to all Australian families, regardless of their financial situation.
The beauty of the Child Care Subsidy system is that it’s automatic once you’re approved. You don’t need to handle any payments yourself – the government pays their portion directly to your childcare centre, and you simply pay the remaining gap fee. This means less paperwork and financial stress for busy parents.
How Much Child Care Subsidy Can You Receive?
The amount of support you receive depends on your family’s circumstances, but the good news is that most families qualify for significant assistance. The subsidy covers a percentage of your childcare costs based on your family income, how many hours you work or study, and the type of care your child receives. According to Services Australia, families can receive substantial support to make childcare affordable.
2024-2025 CCS Rates and What They Mean for Your Family:
Family Income | Subsidy Rate | What This Means |
Up to $83,280 per annum | 90% | The government pays 90% of your childcare fees |
$83,280 – $533,280 per annum | Decreasing from 90% | Support reduces gradually as income increases |
$533,280+ per annum | 0% | No subsidy available |
Source: Department of Education – Child Care Subsidy.
For most working families, this means significant savings. For example, if your family earns $60,000 per year, the government will cover 90% of your childcare costs. At Village Early Education, we work closely with families to calculate exactly what their gap fees will be, so there are no surprises when it comes to budgeting for childcare.
Our comprehensive programs cater to children from as young as 6 weeks through to kindergarten programs, and CCS applies to all age groups, making quality early education affordable throughout your child’s development.
Understanding the Activity Test Requirements
The government wants to ensure that childcare support goes to families who need it for work, study, or other approved activities. The activity test determines how many hours of subsidised childcare you can access each fortnight. Don’t worry – the requirements are quite reasonable and cover most family situations.
Here’s how the activity test works in practice:
| Your Activity Level (per fortnight) | Subsidised Hours You Get | What This Covers |
| Less than 8 hours | 0-24 hours | Some support for low-income families |
| 8-16 hours | 36 hours | Part-time work or study |
| 16-48 hours | 72 hours | Most full-time workers |
| Over 48 hours | 100 hours | Extended care for demanding schedules |
Activities that count toward your activity test include paid work, studying (including online courses), volunteer work, and even actively looking for employment. If you’re a stay-at-home parent who volunteers at the local school or is studying part-time online, these activities also count towards your eligibility.
At Village Early Education, our centres operate with convenient daily hours Monday to Friday, which means we can accommodate various work schedules and activity requirements, helping you make the most of your subsidised hours.
Child Care Subsidy Eligibility Requirements in Victoria
Understanding eligibility requirements is crucial for a successful application. The good news is that most Australian families qualify for some level of support. The basic eligibility criteria, as outlined by the Department of Education, are straightforward and designed to be inclusive:
Basic Requirements:
- Care for a child aged 13 years or younger who isn’t attending secondary school
- Use an approved childcare service like Village Early Education
- Be responsible for paying the childcare fees directly
- Care for your child at least 2 nights per fortnight (or have 14% care responsibility)
Residency Requirements:
- Australian citizenship, OR
- Permanent visa holder, OR
- Special category visa holder, OR
- Certain temporary visas (partner provisional or temporary protection)
Immunisation Requirements:
- Child must be up-to-date with age-appropriate vaccinations according to the Department of Health schedule, OR
- Have an approved medical exemption recorded on the Australian Immunisation Register
These requirements ensure the program supports families who need it most while maintaining reasonable standards for child safety and program integrity. At Village Early Education, our staff can help you understand these requirements and ensure your child’s records are in order before starting care.
Step-by-Step Application Guide
Gathering Your Documents and Information
Before you begin your application, having all necessary documents ready will make the process smooth and efficient. According to Services Australia’s application checklist, you’ll need these essential items:
Personal Documents:
- myGov account (create at my.gov.au if needed)
- Centrelink services linked to your myGov account
- Personal identification documents
- Income information (recent tax return or pay slips)
- Bank account details
Child’s Information:
- Birth certificate
- Medicare details
- Immunisation records from Australian Immunisation Register
Childcare Provider Details:
- Information about your chosen approved service
The Complete Application Process
The online application is user-friendly, but take your time to provide accurate information. Follow these key steps:
Application Steps:
- Log into myGov and access Centrelink online services
- Select “Make a claim” → “Child Care Subsidy”
- Complete personal and family details
- Provide accurate income estimates (this determines your subsidy rate)
- Report all work, study, or volunteer activities for both parents
- Add child’s details and immunisation status
- Select your childcare provider
- Review carefully and submit with reference number
The income section is crucial – if your income varies, it’s better to slightly overestimate than underestimate to avoid potential debts later.
Important Timeline Considerations
Timing your application correctly can save you money and stress. Here’s what you need to know:
Key Timeline Points:
- Apply at least 3 months before your child starts childcare
- Processing takes up to 14 days (longer during busy periods)
- CCS can be backdated up to 28 days from submission
- Once approved, it remains valid for 26 weeks (CCS continues as long as eligibility is maintained. If no activity is reported for 26 weeks, Centrelink may review your eligibility.)
At Village Early Education, our enrolment team provides comprehensive support throughout the CCS application process, ensuring everything is ready when your child begins their early learning journey.
Maximising Your Child Care Subsidy Benefits
Using Government Tools to Plan Your Budget
Before choosing childcare, use the official StartingBlocks CCS calculator to estimate your subsidy percentage, gap fees, and total weekly costs.
Understanding Rate Caps
The government sets maximum hourly rates that CCS covers. For centre-based day care (like Village Early Education), these rate caps are reviewed annually to ensure families receive appropriate support. Our transparent fee structure maximises your CCS benefits while providing exceptional value.
Additional Child Care Subsidy (ACCS)
Some families may qualify for Additional Child Care Subsidy for grandparent carers, temporary financial hardship, transition to work, or child wellbeing situations. Speak with our team at Village Early Education if you think you might qualify.
Common Mistakes to Avoid and How to Prevent Them
Many families make simple mistakes during the CCS application process that can delay approval or result in incorrect payments. Understanding these common pitfalls will help ensure your application goes smoothly and you receive the maximum benefits available to your family.
Income-Related Mistakes:
- Underestimating annual income (can result in debt at tax time)
- Overestimating income (means paying higher gap fees unnecessarily)
- Not updating income when circumstances change
- Using outdated tax information instead of current pay details
Activity Test Errors:
- Not reporting all qualifying activities (work, study, volunteering)
- Underreporting hours worked or studied
- Forgetting to include job searching as a qualifying activity
- Not understanding that online study and volunteer work count
Application Timing Issues:
- Applying too late and paying full fees initially
- Not allowing enough time for processing during busy periods
- Starting childcare before CCS approval is confirmed
- Missing the 28-day backdating window
Documentation Problems:
- Incomplete immunisation records
- Outdated personal identification
- Missing childcare provider information
- Not keeping copies of application submissions
These mistakes are easily preventable with proper preparation and understanding of the system. Speak with our friendly staff at Village Early Education while you’re preparing your CCS application, we can assist you with any questions and help you avoid these common pitfalls.
Recent Changes That Benefit Your Family
The Child Care Subsidy system improved significantly in July 2023. The Australian Government implemented changes that directly benefit families:
- Maximum CCS rate increased from 85% to 90%
- Income limit increased from $356,756 to $533,280
- Annual payment cap completely removed
- Enhanced support for Aboriginal and Torres Strait Islander families
These changes make quality early childhood education more accessible than ever. At Village Early Education, we’ve helped more families access our programs thanks to these improvements.
How Village Early Education Supports Your CCS Journey
At Village Early Education, we provide comprehensive CCS support because we believe every family deserves access to quality early childhood education.
Our CCS Support:
- Detailed guidance on application processes
- Clear gap fee information for accurate budgeting
- Ongoing support for CCS queries and updates
- Help maximising your available benefits
Our Victorian Locations
Village Early Education operates seven locations where your CCS benefits apply:
Regional Victoria:
Melbourne Metropolitan:
Start Your Child's Early Learning Journey Today
Applying for Child Care Subsidy doesn’t have to be overwhelming when you have the right information and support. With government assistance covering up to 90% of childcare costs, quality early education is more accessible than ever for Victorian families. At Village Early Education, we’re committed to helping families navigate the CCS system while providing exceptional early learning experiences across our seven convenient locations. Our family-owned approach means we understand the challenges families face, and our Early Years Learning Framework, qualified educators, and transparent fee structure ensure your CCS investment supports your child’s development in a nurturing environment where every child can thrive.
Ready to get started? Contact your nearest Village Early Education centre where our friendly enrolment team can assist you with any questions about maximising your Child Care Subsidy benefits
