The Child Care Benefit and Child Care Rebate have been scrapped and replaced with one single Child Care Subsidy effective 2 July 2018.

Activity Test

The base level of entitlement for all children is 12 hours of care per week. Beyond that, you need to meet the "Activity Test”. 'Activity' includes paid work, being on annual leave or parental leave, unpaid work in a family business, education, volunteering and looking for work.

  • Eight to 16 hours of 'activity' per week gives you an entitlement to 36 hours of subsidised child care per week.
  • Sixteen to 48 hours of 'activity' gives you 72 hours of care.

Child Care Subsidy

  • Household income under $66,958, your child care subsidy is 85 per cent of the cost of the care. So if your child care centre charges $100 per day, you will be charged $15.
  • $66,958 and below $171,958, the subsidy reduces from 85 per cent to 50 per cent.
For families using a child care centre, the maximum hourly rate cap is $11.77. If that is the fee your child care centre charges, the government will pay 85 per cent of that, or $10.00 per hour. You pay the rest - $1.77 per hour. If the child care centre charges more than $11.77, the government will still just pay $10 per hour, leaving you to pay the rest.

Family Day Care Child Care Subsidy Rates

  • Maximum hourly rate cap is $10.90 and for Out of School Hours care the maximum hourly rate cap is $10.29.

Pre-school Children and Subsidised Child Care

Do you have a pre-school child? Have you applied for an exemption which could increase ‘Subsidised hours’ from up to 24 to 36 hours per fortnight?

The preschool aged child(ren)must attend a preschool program at their child care service (Centre Based Day Care service) and you need to lodge a Child Care Subsidy claim. Centrelink will send a letter indicating the entitled subsidised care per fortnight.

To submit a child subsidy click here.

In-home Care (Nanny) Subsidy Rates

There is a higher hourly cap for families with in home care – like a nanny – of about $25 per hour.

New families who are interested in accessing IHC from 2 July 2018 should make contact with the IHC Support Agency for their state or territory.

To find a local In Home Care provider and more information click here.