Child Care Subsidy

How your income affects it

The Child Care Subsidy percentage you’re entitled to depends on your family’s income.

Family income

We'll work out your Child Care Subsidy percentage using your family income estimate.

Your Child Care Subsidy percentage is the amount we’ll subsidise. It will apply to either your hourly fee or the relevant hourly rate cap, whichever is lower.

If your family earns Your Child Care Subsidy percentage will be
$0 to $66,958

85%

More than $66,958 to below $171,958

Between 85% and 50%
The percentage goes down by 1% for every $3,000 of income your family earns

$171,958 to below $251,248

50%

$251,248 to below $341,248 Between 50% and 20%
The percentage goes down by 1% for every $3,000 of income your family earns
$341,248 to below $351,248 20%
$351,248 or more 0%

You can still claim this subsidy even if your family income estimate is $351,248 or more. If you actually earn less than this, we’ll pay you the subsidy you’re entitled to. We’ll do this when we balance your payments at the end of the financial year.

Annual cap

If your family earns $186,958 or less, you won’t have an annual cap on your subsidy.

If your family earns more than $186,958 and under $351,248 we’ll cap your subsidy. This means we’ll subsidise your fees up to the annual cap of $10,190 per child each financial year.

Withholding

We’ll withhold 5% of your subsidy. This is to help reduce the likelihood of you getting an overpayment. You’re able to vary this amount to suit your circumstances.

We use your family income estimate to work out how much subsidy you’ll get. This means at the end of each financial year we’ll balance your payments using your actual adjusted taxable income.

Page last updated: 20 September 2018