Child Care Subsidy

What Wollongong Families Need to Know

Paying for childcare is one of the largest ongoing costs many families face. The Australian Government’s Child Care Subsidy (CCS) is designed to ease that burden by reducing the fees you pay directly to your provider.

This guide answers the following questions:

What is the Child Care Subsidy?

Who can get the Child Care Subsidy?

How much Child Care Subsidy can I get?

How do I apply for the Child Care Subsidy?

— all tailored to help Wollongong families plan and budget confidently.

What Is the Child Care Subsidy (CCS)?

The Child Care Subsidy is the main government payment designed to make childcare, preschool, and early learning more affordable. Instead of paying money directly to you, the government pays the subsidy straight to your approved childcare provider, who then deducts that amount from your fees. This means you only pay the “gap fee” — the remaining cost after subsidy.

The CCS applies to most types of early education and care, including:

Long day care (childcare centres)
Family day care
Preschools and kindergartens
Outside School Hours Care (OSHC)
Vacation care programs

Child Care Subsidy in Wollongong

While CCS is a national program, the way it impacts families can vary depending on local childcare availability, hourly fees, and the type of service you choose. Many Wollongong childcare centres and family day care providers are CCS-approved and will guide you through the process during enrolment.

Childcare costs in Wollongong typically align with NSW regional averages but can differ from those in metropolitan Sydney. This means your out-of-pocket costs — even with the same subsidy percentage — may be slightly lower or higher depending on location, inclusions (like meals or nappies), and service quality.

By understanding how the subsidy works and combining it with local provider options, families across Wollongong, Dapto, Shellharbour, and the wider Illawarra can significantly reduce their early education costs without compromising on quality.

Who Can Get the CCS?

You may be eligible for the Child Care Subsidy if you meet all of the following conditions:

You live in Australia and are an Australian citizen, permanent resident, or hold an eligible visa
You’re responsible for paying the childcare fees
You’re using a government-approved childcare service
Your child is aged under 13 and not attending secondary school (exceptions apply)
Your child meets the required immunisation schedule

Tip: Many families qualify for CCS even if one parent works part-time or is studying. Volunteer work, job seeking, and unpaid work in a family business also count towards activity hours.

How Much Subsidy Can You Get?

The amount of CCS your family receives is based on three key factors:

Your household income – Lower-income families receive a higher subsidy percentage.
Your recognised activity hours – Work, study, volunteering, or job seeking are counted. The more hours you do, the more subsidised hours you can receive.
The type of care and fee cap – Each service type (e.g. long day care, family day care, OSHC) has an hourly rate cap. Your subsidy is calculated against the lower of the service’s fee or the cap.

In general, the subsidy starts as high as 90% for lower-income households and gradually tapers down by around 1% for every $5,000 of additional income. Families with more than one child under five often receive a higher subsidy rate for their younger children.

Estimate Your Child Care Subsidy

Knowing how the subsidy is calculated is one thing — but understanding what it means for your family is far more useful. Our Child Care Subsidy Calculator, built for Wollongong families, helps you estimate your:

Subsidy percentage
Total subsidised hours
Out-of-pocket weekly costs

Simply enter your income, activity hours, care type, and hourly fees to get a tailored estimate before you enrol.

Recent & Upcoming CCS Changes

The CCS system is updated regularly to make childcare more accessible. Recent and upcoming reforms include:

Three-Day Guarantee (2026): All eligible families will receive at least three days of subsidised care per week, regardless of activity hours.
Expanded Eligibility: Adjustments to income thresholds and subsidy rates will allow more families to access higher levels of support.
Multiple Child Boost: Families with more than one child under five may receive a higher subsidy for younger siblings.

Absences and Overpayments

Even if your child can’t attend care, you can still receive CCS for up to 42 absence days per child, per financial year — helpful when children are sick or on holiday. In most cases, no documentation is required.

To prevent overpayments, the government withholds 5% of your CCS throughout the year. When your actual income is confirmed at tax time, any difference is reconciled — you’ll either receive a refund or owe a small balance.

How to Apply and Manage Your CCS

Applying for CCS is straightforward. Here’s how:

Log in to your myGov account and link it to Centrelink
Go to “Make a claim” → “Family assistance” → “Child Care Subsidy”
Provide your income, activity hours, and other required details
Once approved, you’ll receive an assessment notice with your subsidy percentage, subsidised hours, and fee caps
Update your details anytime (e.g. income changes, work hours) in myGov to keep your subsidy accurate

Final Thoughts for Wollongong Families

The Child Care Subsidy makes early learning more affordable and accessible for families across Wollongong and the Illawarra. By understanding how CCS works, how much you’re entitled to, and how to manage your claim, you can save thousands of dollars each year while giving your child the best possible start.

Whether you’re enrolling in long day care, family day care, preschool, or OSHC, CCS can ease financial pressure and allow you to focus on what matters most — your child’s growth and development.

Next step: Start your search in our Childcare in Wollongong directory and discover approved services that accept the Child Care Subsidy.

Frequently Asked Questions About the Child Care Subsidy

Q: Can I get the Child Care Subsidy if I work part-time?
A: Yes. CCS is based on recognised activity hours, which include part-time work, study, volunteering, and job seeking. Even with fewer hours, you may still qualify for subsidised care.

Q: Does CCS cover vacation care?
A: Yes. The subsidy applies to vacation care offered by approved providers, making school holiday care more affordable.

Q: What if my income changes?
A: Update your income details through myGov as soon as possible. Your CCS will be recalculated, reducing the chance of overpayments or unexpected debts.

Q: How often is CCS paid?
A: Payments go directly to your childcare provider, usually weekly or fortnightly. The subsidy is applied automatically, and you only pay the gap fee.