What is Child Care Subsidy (CCS)?

The Child Care Subsidy is a federal payment scheme that reduces what families pay in childcare fees. Instead of receiving money directly, eligible families benefit because approved childcare services pass the subsidy to providers, who then charge families a lower out-of-pocket amount. This makes regular childcare more affordable for working and studying parents across Perth Metropolitan and beyond.

To qualify for CCS, families must meet two key tests. The activity test requires at least one parent to be engaged in work, study, or approved training for a minimum number of hours each week. The income test assesses household income, with subsidy amounts varying based on what a family earns. Families with lower incomes receive higher subsidy rates, while higher-income households receive lower rates or may not qualify.

For parents using childcare in Perth, CCS eligibility determines how much they actually pay per session or week at their chosen service. The subsidy does not apply to all childcare arrangements, only those provided by approved centres and family day carers. Families need to apply for CCS through the Australian government's services, and their eligibility is reassessed regularly based on changes to work, study, or income. Understanding CCS is important when selecting childcare because the net cost to a family depends partly on their subsidy entitlement.