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At Fair Foundations, we want to make it easier for families to understand the cost of care and what support is available. From 7 July 2025, changes to the Child Care Subsidy (CCS) will take effect. These updates happen each year to reflect changes in the cost of living and can affect how much the Government contributes toward your childcare fees.

Here’s a quick look at what’s changing and how it could affect your family.

1. The Hourly Rate Caps Are Increasing

The hourly rate cap is the maximum amount the Government will subsidise per hour of care. These are going up in 2025–26:
 

Care Type

 
 
 
 

Children below school age

 
 
 
 

School-age children

 
 
 
 

Centre Based Day Care

 
 
 
 

$14.63

 
 
 
 

$12.81

 
 
 
 

Outside School Hours Care

 
 
 
 

$14.63

 
 
 
 

$12.81

 
 
 
 

Family Day Care

 
 
 
 

$13.56

 
 
 
 

$13.56

 
 
 
 

In Home Care (per family)

 
 
 
 

$39.80

 
 
 
 

$39.80

 
 
 
 
 

What this means for you:

The higher hourly rate cap means the Government may cover more of your childcare fees. If your fees are at or below the new cap, your costs may stay the same. If your centre charges more, your out-of-pocket costs could go down slightly.
 
2. Family Income Thresholds Are Being Adjusted
The amount of CCS you receive depends on your family income. From 7 July 2025, the thresholds will be:
 

Family Income

 
 
 
 

CCS Subsidy Rate

 
 
 
 

Up to $85,279

 
 
 
 

90%

 
 
 
 

$85,279 to below $535,279

 
 
 
 

Decreasing by 1% for every $5,000 over $85,279

 
 
 
 

$535,279 or more

 
 
 
 

0%

 
 
 
 
 

These thresholds are updated each year in line with the Consumer Price Index (CPI), a measure used by the Government to track the rising cost of living and adjust payments to keep up with inflation.

 
Learn More


To read more about the upcoming CCS changes and what they mean for your family, visit the Australian Government Department of Education website.

If you have questions, our team at Fair Foundations is always here to help.

You can also visit our CCS page for more information about how the subsidy works, eligibility, and how to apply.

 
 This page was last updated on 9 July 2025. Any changes to the Child Care Subsidy (CCS) after this date may not be reflected here. Please refer to Services Australia’s website for the latest updates.