Childcare in Australia: Costs, Subsidies & Enrolment Guide for Migrant Families (2026)

Childcare in Australia: Costs, Subsidies & Enrolment Guide for Migrant Families (2026)

This comprehensive guide covers everything you need to know: comparing long day care with family day care, understanding the 2025-26 CCS rates, navigating the activity test (and the game-changing "3-day guarantee" from January 2026), and untangling the confusing preschool vs kindergarten terminology that differs by state.

Understanding Childcare Types in Australia

Before choosing a service, it's essential to understand the two main types of approved childcare in Australia. Both are regulated under the National Quality Framework (NQF) and eligible for the Child Care Subsidy.

Long Day Care (Centre-Based Care)

Long day care operates in purpose-built centres and is the most common form of childcare in Australia.

Best for: Families needing full-day care with consistent hours, parents who want their children to socialise in larger groups, and those who prefer structured learning environments.

Family Day Care (Home-Based Care)

Family day care is provided in an educator's home, offering a more intimate setting.

Best for: Families wanting a home-like environment, those needing flexible or non-standard hours, and children who thrive with more personalised attention. Many early childhood educators operate family day care services.

Child Care Subsidy (CCS): How Much Will You Save?

The Child Care Subsidy is a government payment that goes directly to your childcare provider, reducing your out-of-pocket costs. Understanding how it works is crucial for budgeting.

2025-26 CCS Rates (From July 2025)

The amount of subsidy you receive depends on your combined family income:

Hourly Rate Cap (2025-26): The government subsidises up to $14.63/hour for centre-based care (children below school age). If your centre charges more, you'll pay the difference.

Multiple Children Bonus

Families with more than one child aged 5 or under in approved care can receive a higher CCS rate for younger children:

Real-World Example: What Will You Actually Pay?

Scenario: A family earning $90,000/year with one child in long day care 3 days per week.

The Activity Test: How Many Hours of Subsidised Care?

The activity test determines how many hours of subsidised care your family can access per fortnight. It's based on the hours you and your partner spend on "recognised activities."

Current Activity Test (Until 4 January 2026)

Recognised Activities Include:

• Paid employment
• Self-employment
• Study or training
• Volunteering
• Looking for work
• Parental leave (up to 26 weeks)

Major Change: "3-Day Guarantee" (From 5 January 2026)

A significant reform takes effect on 5 January 2026, making childcare far more accessible:

Why This Matters for Migrant Families:

• If one parent is learning English or not yet employed, your family still gets 3 days of subsidised care
• Parents studying for skills assessments or professional registration can access childcare while preparing
• Stay-at-home parents get support to maintain their child's social and educational development

NARWP: No Waiting Period for Child Care Subsidy

Unlike many other government payments, the Child Care Subsidy does not have a Newly Arrived Resident's Waiting Period (NARWP). This is excellent news for new migrants.

Who Is Eligible for CCS?

You (or your partner) must be living in Australia and hold one of the following:

Preschool vs Kindergarten: State-by-State Confusion

One of the most confusing aspects of Australian childcare for migrants is that "preschool" and "kindergarten" mean different things in different states-and these programs are run by qualified teachers. Here's a breakdown:

Terminology by State

Free or Subsidised Preschool Programs

Each state offers different levels of funding for preschool/kindergarten:

Enrolling Your Child: Step-by-Step Guide

Step 1: Find and Secure a Place

1. Research services: Use StartingBlocks.gov.au to compare centres by quality rating, location, and fees
2. Join waitlists early: Popular centres in metro areas can have 12+ month waitlists-some parents register during pregnancy
3. Visit services: Tour your shortlisted centres to check environment, staff, and overall "feel"

Step 2: Complete Enrolment

Once you've secured a place, you'll need to:

• Complete the centre's enrolment form
• Provide immunisation records from the Australian Immunisation Register (AIR)
• Sign a Complying Written Arrangement (CWA) specifying days, hours, and fees

For Migrant Families with Overseas Records:

Overseas immunisation records (e.g., "Yellow Books" or foreign medical certificates) are not accepted by Centrelink or childcare centres. You must:

1. Visit a GP: Take your overseas records to a General Practitioner or Council Immunisation Clinic
2. Transcription fee: GPs may charge $30-$60 for this administrative service (often not bulk-billed)
3. Catch-Up Schedule: If your child is missing Australian vaccines, the GP will place them on a "Catch-Up Schedule"
4. Instant eligibility: Once the Catch-Up Schedule is active on the AIR, your child is deemed "up to date" for CCS and enrolment purposes-even before receiving all the jabs

Step 3: Confirm Child Care Subsidy

1. Link myGov to Centrelink: Required to manage your CCS claim
2. Add your child: Register them via your Centrelink online account
3. Confirm enrolment: Your childcare provider will submit the enrolment details
4. Complete the activity test: Declare your work/study hours
5. CCS applies automatically: The subsidy goes directly to your provider, and you pay the gap

Common Questions for Migrant Families

Q: I just got my PR. Can I claim CCS immediately? A: Yes! Unlike many Centrelink payments, CCS has no NARWP. You can apply as soon as you have a CRN (Customer Reference Number) and your child is enrolled in approved care. Use our CCS Calculator to estimate your entitlement.

Q: I'm on a 482 visa. Am I eligible for CCS? A: Unfortunately, no. Despite paying Australian income tax, 482 (Temporary Skill Shortage) visa holders are not eligible for CCS. The same applies to 491/494 regional visa holders. Childcare costs of $35,000-$50,000 per year per child are a major expense for these families. Consider this when calculating whether the second parent should work-if childcare costs consume most of that income, one parent staying home may be more economical until PR is granted.

Q: We don't both work. Will we get any subsidy under the new rules? A: From 5 January 2026, all CCS-eligible families receive at least 72 hours of subsidised care per fortnight (approximately 3 days per week), regardless of work or study hours.

Q: Is preschool free in Australia? A: It depends on the state. Victoria and Queensland offer free preschool/kindy programs for 4-year-olds. In NSW, "Start Strong" provides significant fee relief but not completely free care. All programs are CCS-eligible for additional hours.

Q: Can I claim CCS for au pair or nanny care? A: Generally, no. CCS only applies to approved childcare services (long day care, family day care, outside school hours care, in-home care under specific circumstances). Au pairs and private nannies are not eligible.

Q: Do I need Medicare for my child to get CCS? A: No, Medicare enrolment is not required for CCS. However, you do need your child to be registered in your Centrelink record. Immunisation records (from AIR) are required for enrolment in most childcare services. See our Medicare application guide for details on enrolling your family.

Q: What happens to my CCS if I lose my job? A: You can continue receiving CCS during job search activities. From January 2026, the "3-day guarantee" ensures all families receive at least 72 hours of subsidised care per fortnight regardless of employment status.

Comparing Your Options: Quick Reference

How First Migration Can Help

While we don't directly assist with Centrelink applications, understanding how your visa affects your family's childcare options is important for settlement planning. At First Migration Service Centre, our registered migration agents can help you:

• Understand which visas qualify for government benefits like CCS
• Plan your pathway to permanent residency with family considerations
• Navigate partner visa applications when family circumstances change
• Advise on adding children to existing visa applications

Ready to discuss your family's migration options? We invite you to submit a free visa assessment so we can help you plan your family's future in Australia.