Child Care Subsidy calculator
What child care costs after a means-tested subsidy, including any cap that limits what the subsidy applies to.
Out of pocket per fortnight
Estimate$254.00
72.7% of your fee is covered, against a 77% headline rate
- Subsidy rate
- 77.06%
- Subsidy per fortnight
- $676.00
- Out of pocket a year
- $6,612.00
| Fee at 15.50 an hour | $930.00 |
|---|---|
| Hourly rate cap | $14.63 |
| Subsidy applies to | $14.63 |
| Subsidy received | $676.00 |
| You pay | $254.00 |
- Your fee of $15.50 exceeds the $14.63 cap, so the subsidy is a share of the cap and the whole excess is yours — the effective rate is 72.7%, not 77%.
- The subsidy falls 1 percentage point per $5,000 of family income, which is a real marginal cost on a second earner that no tax table shows.
At a $15.50 fee against a $14.63 cap, the subsidy covers a share of $14.63 and the $0.87 excess is entirely yours.
Do you qualify
How this is calculated
A rate cap limits what the subsidy covers
Australia applies the subsidy to the lower of the fee and an hourly cap of $14.63 for centre-based care, so any excess is entirely the parent’s cost.
subsidy = min(fee, cap) × hours × rateMeans testing tapers the rate
The Australian rate starts at 90% and falls one percentage point per $5,000 of family income above $85,279, reaching zero at $535,279.
rate = 90% − 1% × (income − threshold) ÷ $5,000Additional children can attract more
Australia adds 30 percentage points for the second and younger children, to a 95% ceiling, which materially changes the cost of care for a second child.
Worked example: $150,000 family income at $15.50 an hour for 60 hours a fortnight
| Family income | $150,000 |
|---|---|
| Fee | $15.50 an hour |
| Hourly cap | $14.63 |
|---|---|
| Excess | $0.87 an hour |
Child care support differs by country. Pick a country above for the scheme that applies where you live.
What this assumes
- The family meets any activity requirement.
- An approved service claiming the subsidy directly.
- Subsidised hours within the standard limit.
- No additional supplements applied.
Where this commonly goes wrong
- Part of the subsidy is often withheld and reconciled after the tax return, so fortnightly figures understate the eventual total.
- Where the subsidy is paid to the service, income changes appear as a change in the gap fee rather than a payment.
- Fee increases above a rate cap fall entirely on the parent, so the cap matters more than the headline rate.
Questions
How is a child care subsidy means tested?
Australia starts at 90% for family income up to $85,279 and reduces the rate by one percentage point for every $5,000 above that, reaching zero once income passes $535,279.
Why does a rate cap matter more than the percentage?
Because the subsidy applies to the lower of the fee and the cap. At a $15.50 fee against a $14.63 cap, 87 cents an hour is unsubsidised whatever your percentage is.
Is a second child cheaper?
In Australia, materially. The second and each younger child attract 30 percentage points more subsidy up to a 95% ceiling, so the marginal place costs far less than the first.
Related tools
Sources
General estimate based on published ATO rates for the the current period. Not tax advice, and it does not consider your objectives, financial situation or needs. Confirm your position with the ATO or a registered tax agent.
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