If you live in Melton and you’re trying to work out what childcare will actually cost your family in 2026 — this is the only guide you need. We’ve broken down the Child Care Subsidy (CCS), the income thresholds, the activity test, and what it looks like in real dollars for a Melton household.
What is the Child Care Subsidy?
The Child Care Subsidy (CCS) is the Australian Government’s main financial assistance program for families using approved childcare services — including long day care, family day care, outside school hours care (OSHC), and in-home care.
Rather than money going into your bank account, the CCS is paid directly to your childcare provider, which then reduces the gap fee (out-of-pocket amount) you’re charged each week.
CCS is not a cash payment. It’s a discount applied directly to your childcare fees. You only ever pay the “gap” — the difference between the full fee and what the government covers.
2026 CCS Income Thresholds & Subsidy Rates
The CCS percentage you receive is based on your family’s combined annual taxable income. The table below reflects rates applicable for the 2025–26 financial year.
| Combined Family Income | CCS Rate | You Pay (approx.) |
|---|---|---|
| $0 – $83,280 | 90% | ~10% of fees |
| $83,280 – $530,000 | Tapers from 90% → 0% | Increases gradually |
| $530,001 and above | 0% | Full fee |
Important: Annual Cap
Families earning above $83,280 are subject to an annual CCS cap of $10,655 per child (2025–26). Families below this threshold are not subject to the cap. The cap resets on 13 July each year.
How the taper works
For every dollar of income above $83,280, the subsidy rate reduces by 1 percentage point for every $3,000 of additional income (approximately). This means a family earning $140,000 still receives meaningful support — roughly 70–72% — so don’t assume you earn “too much” to benefit.
| Example Family Income | Approx. CCS % | Weekly fee ($130/day, 3 days) | Your weekly gap |
|---|---|---|---|
| $60,000 | 90% | $390 | ~$39 |
| $100,000 | ~84% | $390 | ~$62 |
| $140,000 | ~71% | $390 | ~$113 |
| $180,000 | ~57% | $390 | ~$168 |
| $250,000 | ~33% | $390 | ~$261 |
The Activity Test — the Rule Many Families Miss
Your income is only half the equation. The CCS also depends on how many hours of recognised activity each parent (or the lower-activity parent in a couple) does per fortnight.
| Recognised Activity Hours (per fortnight) | Subsidised Hours (per fortnight) |
|---|---|
| 8 – 16 hours | 36 hours |
| 17 – 48 hours | 72 hours |
| 49 hours or more | 100 hours |
| Less than 8 hours | 24 hours (base rate) |
Recognised activities include: paid work, self-employment, study or training, approved leave, and actively looking for work. If one parent isn’t working yet (for example a stay-at-home parent returning to the workforce), the family can still access 24 subsidised hours per fortnight.
💡 Melton tip
Many Melton parents are returning to part-time work as the suburb grows. Even 8 hours of work per fortnight unlocks 36 subsidised hours — enough for 3 full days of care each week.
What Does Childcare Actually Cost in Melton?
Before we can talk about your gap fee, you need to understand the hourly rate cap — the maximum hourly rate the government will subsidise. If your centre charges above this rate, the gap between the cap and the actual fee is entirely your responsibility.
| Care Type | Hourly Rate Cap (2025–26) |
|---|---|
| Centre-based long day care | $14.29 per hour |
| Family day care | $12.68 per hour |
| Outside school hours care (OSHC) | $13.73 per hour |
| In-home care | $38.61 per hour |
Long day care in Melton typically runs between $115–$145 per day (around $11.50–$14.50/hr for a 10-hour day). Several centres, including those in the Eynesbury, Brookfield, and Cobblebank areas, charge close to or at the rate cap — meaning you receive the full CCS benefit with minimal extra.
⚠️ Watch out for above-cap fees
If a centre charges $155/day, the government only subsidises based on the $14.29/hr cap. The extra $25.90/day above the cap is entirely out of pocket — before your income taper even applies.
Real-Life Cost Examples for Melton Families
Example A: The Nguyen family — $95,000 combined income, 3 days care
Mum works part-time (20 hrs/fortnight), dad full-time. Child attends a Melton centre charging $130/day, 3 days per week.
| Item | Amount |
|---|---|
| Weekly childcare fees (full) | $390 |
| CCS rate (approx. 82%) | 82% |
| Government pays (weekly) | $319.80 |
| Your weekly gap fee | $70.20 |
| Annual gap cost (48 weeks) | ~$3,370 |
Example B: The Patel family — $155,000 combined income, 4 days care
Both parents work full-time. Child attends care 4 days/week at $135/day.
| Item | Amount |
|---|---|
| Weekly childcare fees (full) | $540 |
| CCS rate (approx. 65%) | 65% |
| Government pays (weekly) | $351 |
| Your weekly gap fee | $189 |
| Annual gap cost (48 weeks) | ~$9,072 |
Example C: Single parent — $52,000 income, 4 days care
| Item | Amount |
|---|---|
| Weekly childcare fees (full) | $520 |
| CCS rate (90%) | 90% |
| Government pays (weekly) | $468 |
| Your weekly gap fee | $52 |
| Annual gap cost (48 weeks) | ~$2,496 |
How to Claim CCS — Step by Step
Create or log in to your myGov account
Go to my.gov.au and link your Centrelink account. This is the gateway for all CCS claims.
Confirm your child’s enrolment
Your childcare provider (e.g. your Melton centre) must submit an enrolment notice through the Child Care Subsidy System (CCSS). You’ll get a confirmation via myGov.
Submit your CCS claim
In myGov under Centrelink, go to “Make a claim” → “Child Care Subsidy.” You’ll enter your income estimate and activity details.
Provide your income estimate
Use your best estimate for the full financial year. You can update this at any time — it’s important to keep it accurate to avoid a debt at year-end.
CCS is applied automatically from your first eligible session
Once approved, your provider will receive the subsidy directly and charge you only the gap fee. No invoices to chase — it’s seamless.
Lodge your tax return each year
CCS is reconciled against your actual income after you lodge. If you under-estimated income, you may owe money back. If you over-estimated, you’ll receive a top-up.
Common Mistakes Melton Families Make with CCS
❌ Mistake 1: Not updating your income estimate
If you get a pay rise, bonus, or start a new job and don’t update your estimate in myGov, you’ll accumulate a debt that comes due at tax time. Update it as soon as your income changes.
❌ Mistake 2: Forgetting to re-confirm your enrolment annually
CCS entitlement must be re-confirmed each financial year. If you miss the confirmation window, payments can be suspended — and you’ll be paying full fees while it gets sorted.
❌ Mistake 3: Assuming CCS covers public holidays and absent days
CCS covers a set number of absences per child per year (42 initial absence days). After that, you must have an approved reason — otherwise the full fee applies for that day.
❌ Mistake 4: Not checking if your centre is above the rate cap
Ask your Melton centre: “What is your daily fee and how does it compare to the CCS hourly rate cap?” Above-cap amounts are 100% out of pocket — they don’t interact with your CCS percentage.
Frequently Asked Questions
From July 2023, the government removed the higher subsidy for second and subsequent children. All children in a family are now assessed the same way — based purely on family income and the activity test. This was a significant change for larger Melton families who previously received up to 95% for younger siblings.
Yes. If a grandparent or relative is the primary carer and has legal responsibility for the child, they can claim CCS — they must meet the residency and activity test requirements like any other claimant.
You still qualify for 24 subsidised hours per fortnight under the base entitlement. This can cover two days of care while you’re job-searching, studying, or transitioning back to the workforce — very relevant for growing areas like Melton where new services are expanding rapidly.
Apply as soon as your enrolment is confirmed. CCS cannot be backdated. If your child starts on Monday but your CCS claim isn’t approved until Wednesday, those Monday–Tuesday sessions may be charged at the full rate.
Yes. The Additional Child Care Subsidy (ACCS) is available for families experiencing financial hardship, grandparent carers on income support, children at risk, and families in temporary financial difficulty. Ask your Melton centre’s admin team or contact Services Australia to check eligibility.