Childcare Subsidy Calculator: How Much Childcare Really Costs in Melbourne After CCS

The fee on a centre’s schedule is almost never what you actually pay. For most Melbourne families, the ChildCare Subsidy (CCS) quietly reduces that fee before it reaches your account — and the amount left over, your “gap fee”, is the number that really matters when you’re comparing centres.

A childcare subsidy calculator is the fastest way to find it.

What the childcare subsidy actually is

The Child Care Subsidy is a federal payment that lowers the cost of approved care. Administered by Services Australia, it’s paid directly to your centre, which then reduces your fee — so you never receive a rebate, you just pay the smaller gap fee.

One thing families mix up constantly: CCS is separate from Victoria’s Free Kinder funding. They stack, but they’re not the same thing (more on that below).

The three things that set your subsidy

Every childcare subsidy calculator works from the same three inputs:

• Your income — sets your subsidy percentage. For 2026–27, families earning up to $88,520 get the maximum 90%. Above that, the rate drops 1 percentage point per $5,000 of family income, reaching zero at $538,520. It’s based on combined family income, not just salary. (How income affects CCS.)
• The hourly rate cap — your percentage applies to whichever is lower: your centre’s hourly fee, or the government cap of $15.19/hour for children below school age in 2026–27. If a centre charges above the cap, you pay the full difference on the cents above it. (Cap details.)
• Your hours — since 5 January 2026, the 3 Day Guarantee gives every eligible family at least 72 subsidised hours a fortnight (about 3 days a week), regardless of work or study. Families with 48+ hours of recognised activity per fortnight can access up to 100 hours.

Two extras worth knowing: if you have more than one child aged five or under in care, younger children can attract a higher rate (up to 95%), and there’s no annual cap on total subsidy.

A quick example

Using round numbers for illustration only — not a Starfish quote:

A family on the 90% rate, at a centre charging $14/hour (below the cap), has 90% subsidised. That leaves a gap of about $1.40/hour — roughly $14 for a 10-hour day, not $140.

Same centre, but a family on a 70% rate pays about $4.20/hour — around $42 a day. Same child, very different cost. That’s why guessing from the sticker price doesn’t work.

Why use a calculator

Families often compare advertised daily fees and assume the cheapest wins. But your real cost depends on your income, your hours, and how each centre’s fee sits against the cap — so a slightly pricier centre can cost the same or less out of pocket.

Estimate your gap fee with our subsidy calculator, or use the government’s tool on the Starting Blocks website. A quick note: a calculator gives an estimate, not a final entitlement — that’s confirmed by Services Australia after you claim through myGov. The figures above are current for 2026–27 and indexed each July, so always check the calculator rather than a remembered number.

Where funded kindergarten fits in

If your child is three, four, or in a Pre-Prep year, Victoria’s Free Kinder adds a second layer of support — an annual fee offset that comes straight off your invoice. In long day care, that offset is applied after CCS, so the two stack. Long day care fees still apply, but between the two, a kinder-year place often costs less than families expect.

The Starfish part

At Starfish, the fee you’re quoted is the fee — nappies, wipes, sunscreen, and fresh chef-prepared meals are included, not billed on top. On a tour, your Centre Director will walk you through what your gap fee actually looks like for your days and circumstances.

Book a tour of your nearest Starfish centre — meet your Centre Director, walk the rooms, and ask exactly what your out-of-pocket cost would be.