What is the income limit for childcare subsidy 

The income limit for the Child Care Subsidy (CCS) in Australia is based on a sliding scale. The amount of subsidy decreases as your family income increases. The income limit determines the maximum subsidy percentage you can receive. Here is a general overview of the income limits for CCS:

Your family income Child Care Subsidy percentage
$0 to $72,466 85%
More than $72,466 to below $177,466 Between 85% and 50%
The percentage goes down by 1% for every $3,000 of income your family earns
$177,466 to below $256,756 50%
$256,756 to below $346,756 Between 50% and 20%
The percentage goes down by 1% for every $3,000 of income your family earns
$346,756 to below $356,756 20%
$356,756 or more 0%

What you need to know from July

  • From 10 July 2023, the maximum amount of CCS is increasing from 85% to 90% for families earning up to $80,000.
  • In most cases, you don’t need to do anything to get the increased rate. If you get CCS now, we’ll apply the changes to your CCS automatically from 10 July 2023.
  • The income limit for CCS is also increasing from $356,756 to $530,000.
  • If you earn over $80,000, you may get a subsidy starting from 90%. This will go down by 1% for each $5,000 of income your family earns. The CCS percentage you’re entitled to depends on your family’s income.
  • If you have more than one child aged 5 or under, you can still get a higher rate for one or more of your children if all of these apply:
    • you get or will be eligible for CCS
    • your family’s combined income is under $354,305
    • you have more than one CCS eligible child aged 5, or younger
    • your higher rate child or children are using child care.

Please note that these income thresholds and subsidy percentages are subject to change and may have been updated from time to time. It is advisable to visit the official Australian Government Department of Education, Skills and Employment or consult with the Department of Human Services to get the most current and accurate information regarding income limits for the Child Care Subsidy program.