Child Care Subsidy for Grandparents Not on a Pension in Australia

Most of the information about childcare subsidies for grandparents assumes you're on the Age Pension or another income support payment. But plenty of grandparents raising grandchildren are still working — running a small business, employed part-time, or drawing on superannuation rather than a pension. If that's you, you don't qualify for the Additional Child Care Subsidy (Grandparent) that covers 100% of fees. But you do qualify for the standard Child Care Subsidy, and the rules are more generous than you might expect.

The Standard CCS for Non-Pensioner Grandparents

As a non-parent carer with at least 14% care of the child, you're eligible for the Child Care Subsidy through Centrelink. The subsidy percentage is based on your combined family income:

• Up to $88,520: 90% subsidy (you pay 10% of the fee, up to the hourly rate cap)
• More than $88,520 to below $538,520: subsidy tapers from 90% down to 0%
• $538,520 or more: no subsidy

The hourly rate cap sets the maximum fee the government will subsidise. For centre-based day care in 2026, it's $15.19 per hour for a child below school age and $13.30 for a school-age child. If your childcare provider charges more than the cap, you pay the difference plus your co-payment percentage.

The 3-Day Guarantee

Since 5 January 2026, every eligible family gets a guaranteed 72 subsidised hours per fortnight — equivalent to three full days per week — regardless of the activity test. This is called the 3-Day Guarantee, and it applies even if you're not working, studying, or volunteering.

Before this reform, grandparents who weren't on income support and weren't working had zero subsidised hours. Now, the 3-Day Guarantee means the child can attend early learning three days a week with your CCS rate applied.

If you work, study, or volunteer more than 48 hours per fortnight, the subsidised hours increase to 100 per fortnight. But even at zero activity hours, the 72-hour floor is there.

What You Miss Without ACCS Grandparent

The Additional Child Care Subsidy (Grandparent) is the premium tier — it pays 100% of fees up to 120% of the hourly rate cap, effectively eliminating out-of-pocket costs. But it requires that you or your partner receive a qualifying income support payment (Age Pension, DSP, Carer Payment, Parenting Payment, JobSeeker, or a DVA Service Pension) and that you provide 65% or more of the child's care.

Without ACCS, your gap fee depends on your income and the provider's rates. At the median income and a typical centre-based fee, you might pay $20–$40 per day out of pocket. That's still significantly less than the full fee, but it's not zero.

If you start receiving an eligible income support payment and meet the 65% care and grandparent rules, you may qualify for ACCS (Grandparent). After your CCS claim is approved, apply for ACCS through myGov. Call the GFKCA line on 1800 245 965 if you need help with the claim.

The Indigenous Child Exception

If the child is Aboriginal or Torres Strait Islander, the activity test is bypassed entirely — you receive 100 subsidised hours per fortnight regardless of your work status. This applies to the base CCS, not just ACCS. The child's Indigenous status needs to be recorded on their Centrelink record.

How to Claim

1. Make sure you have a Centrelink record and a linked myGov account.
2. Lodge a Child Care Subsidy claim through myGov → Make a claim → Child Care.
3. Provide the child's details, your care arrangement, and your combined family income estimate.
4. Once approved, tell your childcare provider your Centrelink CRN — they'll link the subsidy to the child's enrolment.

The subsidy is paid directly to the provider, reducing your out-of-pocket fees at each session. You'll see the subsidy amount on your childcare statements.

If your income fluctuates (common for self-employed grandparents), update your income estimate through myGov whenever it changes significantly. Centrelink reconciles your CCS at the end of the financial year against your actual income — an overpayment becomes a debt, and an underpayment becomes a top-up.

The Centrelink Payments for Grandparents guide covers both the standard CCS pathway and the ACCS Grandparent stream, with the income thresholds and activity test rules side by side, so you can see exactly where your situation falls.

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