Fee Reductions

As of the 2 July 2018, Australia has a New Child Care Package. Under the new package, the Child Care Subsidy has replaced the Child Care Benefit and Child Care Rebate. The Child Care Subsidy will be the main way the Government assists families with their child care fees.

Child Care Subsidy

The Child Care Subsidy assists parents or guardians who are working, studying or undertaking an eligible training course with their out of pocket child care costs.

Some basic requirements must be satisfied for an individual to be eligible to receive Child Care Subsidy for a child. These include:

  • the age of the child (must be 13 or under and not attending secondary school)

  • the child meets immunisation requirements

  • the individual, or their partner, meets the residency requirements.

In addition, to be eligible for Child Care Subsidy the individual must be liable to pay for care provided, the care must be delivered in Australia by an approved child care provider (Kids Biz), and not be part of a compulsory education program.

The Child Care Subsidy will be paid directly to the provider (Kids Biz).

How to claim the Child Care Subsidy

Families will need to complete an online Child Care Subsidy assessment using their Centrelink online account through myGov.

You will be asked to complete information on:

1.     Combined family income

2.     Activity level of both parents

3.     Type of child care service


The online assessment can be completed through myGov.

Irregular hours for the Activity Test

To calculate your irregular work hours for the Activity Test, please follow the below steps:

  1. ESTIMATE the highest number of hours you expect to work in any one fortnight within a three month period.

  2. PROVIDE the number of hours to Centrelink (via MyGov) and tick the box to indicate you are in 'casual employment' (working irregular hours).

  3. UPDATE this information if things change, for example, if you stop working or start full-time work.


For more information please click on the Fact Sheet.

For more information

If you would like further information on the New Child Care Package please click on the links below.

New Child Care Package
Frequently Asked Questions
Family Webcast Information Session
Fact Sheets
Department of Human Services
Department of Education & Training



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