The Total Cost of Childcare for 2025

A child developing sensory activities at early learning.

While childcare is an essential part of every little one’s growth journey, the costs involved can add up if you’re unfamiliar with the subsidy relief available to you. Don’t worry, we did all the homework for you! This article covers everything you need to know, from the benefits of childcare to navigating costs and making the most of subsidies to ensure that your little one gets the care they deserve. 

Whether you’re exploring new care or reassessing your current one, use this guide to simplify the process. At Child’s Play Early Learning Centre, we’re dedicated to supporting families in every way we can. Because after all – every child matters. So, let’s dive in –

What is the total cost of childcare?

The total cost of childcare depends on your location, the type of care you require for your child, the services provided and the number of hours you’d like your little one to spend at childcare. The government has also imposed a rate cap on childcare, which is set at $14.29 per hour for centre-based care. Here’s an example of how it all works –

Let’s say your childcare provider charges $150 for a 10-hour session, which works out to $15 per hour. If your household income is $100,000, you qualify for a 87% Child Care Subsidy (CCS), but after the government withholds 5%, the effective rate is 82.65%. The government subsidy is calculated based on the capped rate of $14.29 per hour, meaning you would receive $118.10 for the 10-hour session. The remaining amount you pay, known as the gap fee, is $31.89 per day, or $3.19 per hour. This includes a $0.71 per hour difference between the provider’s fee and the government’s cap, which is not covered by the subsidy.

Here’s the breakdown:

  • Charge per day: $150 for 10-hour session, or $15.00 per hour.
  • CCS Payable: $142.90 for 10 Hour session, or $14.29 per hour (max).
  • Not covered by CCS: $7.10 for 10 Hour session, or $0.71 per hour – which is what you would need to pay.

CCS Received:

  • Combined salary: $100,000
  • CCS Percentage: 87.00% – Remember 5% of this is withheld, so the ‘real’ CCS rate is 82.65%
  • Daily CCS Received: $118.10 ($142.90 * 82.65%)  or ($11.81 per hour)
  • Gap fee payable: $31.89 ($150.00 – $118.10), or $3.19 per Hour

Now, let’s look into the subsidy, how it works and how much you might be eligible for –

Childcare Subsidy

The Child Care Subsidy (CCS) is a great help in making childcare more affordable, because it covers a percentage of the costs – taking the financial stress off of your family. We encourage all families to apply for the subsidy. When you do, you’ll need to meet some requirements to be eligible:

  • You or your partner provide care for your child for at least two nights per fortnight (14%)
  • Are liable for childcare fees
  • Are an Australian citizen or permanent resident
  • Your child is up to date with immunisations

How much can I get in childcare subsidies (CSS)?

Your subsidy rate depends on your household income:

  • Families earning up to $83,280 annually receive a 90% subsidy.
  • For families earning between $83,280 and $533,280, the subsidy gradually decreases by 1% for every $5,000 increase in earnings.
  • Families earning over $533,280 are not eligible for subsidies.

If you’re still unsure, the Services Australia Child Care Subsidy Calculator  is a great tool to help you get an accurate estimate of your eligibility.

Is childcare worth it?

Without a doubt! Childcare is about way more than just child supervision – it’s a springboard for lifelong learning, friends and fun. At Child’s Play, our programs encourage social, emotional, and cognitive development, giving your child the confidence to grow and thrive – and all through play. Using structured activities, free play, and child-led learning, little ones at Child’s Play build essential skills that set them up for success in school and beyond!

Getting started at Child’s Play ELC

With the subsidy taking a lot of the stress off of kindergarten fees, giving your little one the quality childcare they deserve is more achievable than ever. At Child’s Play, our goal is to make our costs affordable without ever sacrificing our high-quality childcare standards. 

We’re here for anything you need. Get in touch with us and we’ll help you understand the subsidy process, so you can send your little one off to kindergarten with complete confidence. Then book a tour and experience everything our early learning centres offer for yourself. From Torquay, Tarneit and Tarneit West to Wyndham Vale and Point Cook, there’s a fun-filled Child’s Play centre near you!