Child Care Subsidy Examples

Example 1: Family A

Family A meets the activity test and is entitled to a subsidy of 90% up to 50 hours per week. The long day care centre charges Family A $140 per day for a 10-hour session for their below school-age child.

1. Hourly fee = $140 / 10 = $14.00
2. Subsidy based on actual fee = $14.00 × 90% = $12.60
3. Subsidy based on fee cap = $14.63 × 90% = $13.17
4. Use the lower = $12.60
5. Weekly subsidy = $12.60 × 10 × 5 = $630.00
6. Weekly out-of-pocket = $140 × 5 − $630.00 = $70.00

Example 2: Family B

Family B meets the activity test and is entitled to a subsidy of 80% up to 50 hours per week. Their long day care centre charges $155 per day for a 10-hour session.

1. Hourly fee = $155 / 10 = $15.50
2. Subsidy based on actual fee = $15.50 × 80% = $12.40
3. Subsidy based on fee cap = $14.63 × 80% = $11.70
4. Use the lower = $11.70
5. Weekly subsidy = $11.70 × 10 × 5 = $585.00
6. Weekly out-of-pocket = $155 × 5 − $585.00 = $190.00

Example 3: Family C

Family C meets the activity test and is entitled to a subsidy of 85% up to 50 hours per week. The family day care charges $125 per day for a 10-hour session.

1. Hourly fee = $125 / 10 = $12.50
2. Subsidy based on actual fee = $12.50 × 85% = $10.63
3. Subsidy based on fee cap = $13.56 × 85% = $11.53
4. Use the lower = $10.63
5. Weekly subsidy = $10.63 × 10 × 5 = $531.50
6. Weekly out-of-pocket = $125 × 5 − $531.50 = $93.50

Example 4: Family D

Family D meets the activity test and is entitled to a subsidy of 60% up to 50 hours per week. The long day care centre charges $165 per day for a 10-hour session.

1. Hourly fee = $165 / 10 = $16.50
2. Subsidy based on actual fee = $16.50 × 60% = $9.90
3. Subsidy based on fee cap = $14.63 × 60% = $8.78
4. Use the lower = $8.78
5. Weekly subsidy = $8.78 × 10 × 5 = $439.00
6. Weekly out-of-pocket = $165 × 5 − $439.00 = $386.00

Example 5: Family E

Family E meets the activity test and is entitled to a subsidy of 70% up to 50 hours per week. Their child is enrolled for 50 weeks of care. The long day care centre charges $135 per day for a 10-hour session.

1. Hourly fee = $135 / 10 = $13.50
2. Subsidy based on actual fee = $13.50 × 70% = $9.45
3. Subsidy based on fee cap = $14.63 × 70% = $10.24
4. Use the lower = $9.45
5. Weekly subsidy = $9.45 × 10 × 5 = $472.50
6. Weekly out-of-pocket = $135 × 5 − $472.50 = $202.50

Example 6: Family F

Family F qualifies for a 85% subsidy for 50 hours per week. The long day care centre charges $170 per day for a 12-hour session (only 10 hours are subsidised).

1. Hourly fee = $170 / 12 = $14.17
2. Subsidy based on actual fee = $14.17 × 85% = $12.04
3. Subsidy based on fee cap = $14.63 × 85% = $12.44
4. Use the lower = $12.04
5. Weekly subsidy = $12.04 × 10 × 5 = $602.00
6. Weekly out-of-pocket = $170 × 5 − $602.00 = $248.00

Note: The Child Care Subsidy is calculated based on the lower of the hourly fee charged or the hourly rate cap set by the Australian Government. Out-of-pocket costs may vary depending on the number of days of care and your eligible subsidy percentage.

6. What are the CCS Hourly Fee Caps?

ACCS (Additional Child Care Subsidy) Rates