Who is eligible for the Child Care Subsidy in NSW?

Most families with children under 13 in approved care are eligible. You must meet the activity test (work, study, training or volunteering), your child must be up to date with immunisations, and you must be an Australian citizen or permanent resident or hold an eligible visa.

How do I apply for the Child Care Subsidy?

Apply through your myGov account linked to Centrelink. You will need a Centrelink record set up for your child, a provider CRN (Centre Reference Number), and information about your income and activity level.

What is the maximum Child Care Subsidy rate?

As of 2025, families earning below approximately $83,280 combined are eligible for the maximum subsidy rate of 90%. The subsidy gradually reduces as income increases, phasing out at higher income levels.

Child Care Subsidy in Newcastle NSW | How to Apply and What You'll Receive

What is the Child Care Subsidy?

The CCS is paid directly to your approved childcare provider and reduces the amount you pay per session. It does not come to you as a cash payment. The provider charges you the gap — the difference between their full fee and the subsidy amount.

Who is eligible?

To receive CCS, you must:

Have a child under 13 who is not attending secondary school
Be an Australian citizen, permanent resident or hold an eligible temporary visa
Have a child who is up to date with immunisations (or have an approved exemption)
Meet the activity test — each parent must do some recognised activity (work, study, training, volunteering, self-employment)
Use approved childcare — most regulated centres, family day cares and outside school hours services are approved

How much will I receive?

The subsidy percentage depends on your combined family income:

Combined income (approximate)	Subsidy rate
Up to ~$83,280	90%
~$83,280 – ~$530,000	Gradual reduction
Above ~$530,000	0%

The subsidy also has a cap — it's calculated on the government's hourly rate cap, not necessarily the provider's full fee. If a provider charges above the cap, you pay the full difference above it.

The activity test

The number of subsidised hours per fortnight depends on the lower of the two parents' activity hours:

Activity hours per fortnight	Subsidised hours per fortnight
Less than 8 hours	24 hours (as of July 2025, the activity test floor applies)
8–16 hours	36 hours
17–48 hours	72 hours
49+ hours	100 hours

Note: Government policy on activity test thresholds changes periodically. Always check the current rules on the Services Australia website.

How to apply

Log in to myGov and link your Centrelink account
Confirm a Centrelink record exists for your child
Get your provider's CRN (they will give you this on enrolment)
Complete the CCS claim via myGov or the Express Plus Centrelink app
Provide your income estimate and activity details

Apply before your child starts care — backdating is limited. If your circumstances change, update Centrelink promptly to avoid overpayments.

NSW Government preschool subsidy

Children in NSW attending approved preschool programs may also be eligible for the NSW Start Strong program, which subsidises 15 hours of preschool per week for eligible children in the year before school. This is separate from the federal CCS. Ask your preschool whether they participate in Start Strong.