What is the CCS percentage hourly rate cap?

The CCS percentage hourly rate cap represents the maximum hourly fee amount that the Australian government recognises when processing Child Care Subsidy payments. This cap sits between a family's actual fees and the subsidy they receive. When a service's hourly rate exceeds the cap, families still pay the full amount they are charged, but the government's subsidy calculation is based on the capped rate, not the provider's actual fee.

In the Perth Metropolitan region, this cap applies across all approved child care providers, from long day care centres to family day care. The government sets the cap amount, which may vary by service type and is adjusted periodically. A service charging above the cap must inform families that their out-of-pocket costs will be higher because the subsidy only covers the amount up to the capped rate.

The distinction matters for both providers and families. Services operating above the cap are permitted to do so, but families in receipt of the subsidy bear the cost difference themselves. For providers in Perth, understanding the cap helps with fee-setting transparency and managing family expectations about how much subsidy will actually apply to their bill. Families need to know the cap to understand their likely cost after subsidy is applied.