Child Care Subsidy for Grandparent Carers: Activity Test Exemption and 100 Hours

Childcare costs are one of the biggest financial shocks for grandparents who suddenly take on a young child. If you are retired or on a pension, the idea of paying $100+ a day for childcare feels impossible. The good news is that grandparent carers have access to some of the most generous childcare subsidies in the system — including full fee coverage with no activity test requirement.

The 3-Day Guarantee (All Families)

Since January 2026, every family eligible for the Child Care Subsidy (CCS) receives a baseline of at least 72 subsidised hours per fortnight — equivalent to 3 full days per week. This guarantee applies regardless of how many hours you work, study, or volunteer. For grandparent carers who are retired, this means you can access 3 days of subsidised childcare per fortnight without meeting any activity test at all.

The subsidy rate depends on your household income. For a family with one CCS-eligible child, the standard subsidy can cover 90% of the fee up to the hourly rate cap when family income is $88,520 or less.

ACCS Grandparent: 100 Hours Fully Subsidised

If you are a grandparent providing 65% or more of the child's care, make the day-to-day decisions about the child's care, welfare, and development, and you or your partner receive an eligible income support payment such as the Age Pension or Carer Payment, you may qualify for the Additional Child Care Subsidy (Grandparent). This is one of the most valuable but under-claimed benefits in the system.

ACCS Grandparent provides:

• Up to 100 hours of subsidised childcare per fortnight
• Coverage of up to 100% of the actual fee charged (up to 120% of the CCS hourly rate cap)
• Complete waiver of the activity test — no requirement to work, study, or volunteer
• Elimination of gap fees in most approved childcare settings

In practical terms, this means a grandparent on the Age Pension can send a grandchild to childcare five days a week at little or no out-of-pocket cost.

How to Apply

ACCS Grandparent is not automatic; you need to apply through Services Australia. If you do not already get CCS, you can apply for ACCS at the same time as your CCS claim. If you already get CCS, apply for the Grandparent subsidy separately:

1. If you do not already get CCS, claim it via myGov (Centrelink online → Child Care Subsidy)
2. Apply for ACCS Grandparent through myGov/Centrelink; if claiming CCS for the first time, you can apply for both at the same time
3. Provide information showing that you meet the Grandparent subsidy criteria, including your care percentage and day-to-day decision-making role
4. Services Australia assesses your income support eligibility and care arrangement
5. The childcare service confirms enrolment through the Child Care Subsidy System

If you meet the criteria — including 65% or more care and day-to-day decision-making — Services Australia will assess your ACCS Grandparent application. Do not assume it has been applied automatically.

Who Qualifies as a "Grandparent"?

For ACCS purposes, Services Australia defines "grandparent" broadly. It includes biological grandparents, step-grandparents, and great-grandparents. However, aunts, uncles, and other non-grandparent relatives are not eligible for ACCS Grandparent specifically — they would use the standard CCS pathway with the 3-Day Guarantee.

Common Questions

Can I use ACCS for before-school or after-school care? Yes. ACCS Grandparent applies to any approved childcare service, including long day care, family day care, outside school hours care, and vacation care.

What if I am not on the Age Pension? You need to be receiving a qualifying income support payment. If you are a self-funded retiree without an income support payment, you can still access the standard CCS with the 3-Day Guarantee, but not the ACCS Grandparent rate.

Does it matter if the arrangement is informal? No. ACCS Grandparent does not require a court order. What matters is that Centrelink recognises you as the child's primary carer, you provide at least 65% of the child's care, and you make day-to-day decisions about the child's care, welfare, and development.

Our Queensland kinship carer support guide includes the full ACCS application steps alongside your other Centrelink claims, so you can set up childcare subsidies as part of the same process rather than discovering them months later.

See more Queensland guides →