Child Care Subsidy: how much you will actually pay in WA
By Farah Vogel · Updated 2026-06-08
The Child Care Subsidy is the single biggest factor in what a Perth family actually pays for care, and it is also the part parents find hardest to estimate before enrolling. This guide walks through how the subsidy reduces your bill in practice, what pushes your percentage up or down, and how to arrive at a number you can actually budget against.
This is general information based on how the subsidy typically works, not personal financial advice. Your exact rate depends on your family’s circumstances and is confirmed by Services Australia.
How the subsidy actually reaches your invoice
Your child care service applies the subsidy directly against your fees and bills you for the difference. If a centre charges 130 dollars a day and your family’s subsidy percentage covers 65 percent of that, you are billed roughly 45 dollars for that day, not the full 130. The provider claims the subsidised portion from the government; you never see that money move through your own account. This is worth understanding because it means the gross fee a provider advertises is not the number you should budget on: your actual weekly cost depends on your subsidy rate as much as on the provider’s price. For the full picture of what drives that headline fee before any subsidy is applied, our child care cost guide breaks down the ranges by care type.
What sets your subsidy percentage
Two things determine how much of your fee is subsidised and how many hours are covered:
Combined family income. Lower-income families receive a higher subsidy percentage, and the percentage steps down as household income rises. At higher income bands the subsidy percentage drops further, and above a certain income threshold it can cut out altogether.
The activity test. Both parents’ hours of work, study, training or approved volunteering (the lower of the two, in a couple) set how many hours per fortnight are subsidised. A family with fewer recognised activity hours gets fewer subsidised hours, even if their income-based percentage is high.
Because both factors apply together, two families paying the same gross fee at the same centre can end up with quite different out-of-pocket costs.
| Factor | What it changes |
|---|---|
| Household income | The percentage of each dollar of fees that is subsidised |
| Activity hours (work, study, training) | How many hours per fortnight are subsidised at all |
| Hours booked above your cap | Charged at the full rate, no subsidy applied |
| Provider’s approval status | Whether the subsidy can be claimed there at all |
Working out a realistic weekly number
Start with the gross weekly fee a provider quotes you, then apply your estimated subsidy percentage to get a rough out-of-pocket figure. This is only ever an estimate: Services Australia calculates your actual entitlement based on your specific income and activity details, and it is reassessed regularly as your circumstances change. A few things commonly catch families out when they do this sums themselves:
- Forgetting that hours above your approved cap are charged in full.
- Estimating on last year’s income when this year’s has changed.
- Assuming every provider is approved for the subsidy without checking.
- Not accounting for extra charges (excursions, incursions, nappies) that sit outside the subsidised fee entirely.
When the numbers do not add up
If your out-of-pocket cost is higher than expected, it is worth checking three things before assuming something is wrong: whether your activity hours were reported correctly, whether your income estimate with Services Australia is current, and whether the provider is charging anything outside the subsidised fee. A provider’s admin staff can usually pull up exactly how the subsidy was applied to a specific invoice if you ask.
Getting help with the calculation
Because the subsidy depends on personal financial and employment details, the most accurate figure will always come from Services Australia directly, or from a provider’s enrolment team working from your actual assessment. Treat any online estimate, including rough figures from a provider, as a starting point for budgeting rather than a guarantee. See our methodology for how we weigh cost and value signals when scoring providers, if you want to check a shortlist against more than price.
If your family’s income or work situation puts you in a lower-support band, it is worth reading about the extra help some families can access beyond the standard subsidy, since concessions and additional support exist for specific circumstances.
FAQ
- Does the subsidy come to me as a payment?
- No. It is paid directly to your child care service and shown as a deduction on your invoice, so you only pay the gap. You never receive the subsidy amount as cash into your own account.
- What if my income changes during the year?
- Report the change to Services Australia as soon as it happens. Subsidy rates are reconciled against your actual annual income at tax time, and a big gap between an estimate and your real income can mean a bill or a top-up once everything is finalised.
- Does the subsidy cover every hour I book?
- Only up to your approved number of subsidised hours per fortnight, which is set by the activity test. Hours booked above that cap are charged at the full, unsubsidised rate, so it pays to check your approved hours before adding extra casual days.
- Can I use the subsidy at any provider?
- Only at services approved to receive Child Care Subsidy payments. Most licensed long day care, family day care, kindergarten and OSHC providers in Perth are approved, but always confirm with a new provider before assuming your subsidy will apply.