The headline fee for childcare can look alarming at first glance. What most Shepparton families actually pay — after the Child Care Subsidy and, for kinder-age children, Free Kinder — is a very different number. This guide explains how the system works, what it means in practice, and includes a calculator so you can work out your own estimate in about 30 seconds.
We’ve kept this practical rather than exhaustive. The full ruleset runs to many pages; what most families need to know fits here.
What is the Child Care Subsidy?
The Child Care Subsidy (CCS) is a federal government payment that goes directly to your childcare centre, reducing the fee your family is charged. You don’t receive the money — it simply reduces what appears on your statement.
The subsidy is income-tested. Families with lower combined incomes receive a higher percentage; the subsidy tapers as income rises. For FY 2025–26, the rates are:
| Combined family income | Subsidy rate |
|---|---|
| Up to $85,279 | 90% |
| $85,280 – $135,279 | 80–90% |
| $135,280 – $235,279 | 60–80% |
| $235,280 – $335,279 | 40–60% |
| $335,280 – $535,279 | 0–40% |
| Over $535,279 | 0% |
Rates taper 1 percentage point for every $5,000 of income above $85,279. Source: Australian Department of Education (FY 2025–26). Rates are indexed annually each July.
The activity test — simplified from 2026
Until recently, the number of subsidised hours your family received was tied to how many hours each parent worked, studied, or volunteered. The more activity, the more subsidised hours — up to a cap.
From 5 January 2026, the activity test floor was significantly raised. Every CCS-eligible family now receives at least 72 subsidised hours per fortnight — regardless of how many activity hours they record. That’s enough for roughly four full days a week at Guthrie Street. For most Shepparton families, the activity test is no longer the binding constraint it once was.
Families with higher activity hours can still access additional subsidised hours (up to 100 hours per fortnight). But for the majority, the income test is now the number that matters most.
Estimate what you’d pay at Guthrie Street
Enter your combined household income and the number of days you’d like per week. The calculator uses Guthrie Street’s actual daily fees and the current CCS tapering rules to give you a realistic estimate.
Used only by your browser to estimate your subsidy. Nothing leaves this page.
Estimated out-of-pocket
$18.48/ day
$73.92 per week (4 days)·88% subsidy
Estimate only. Your actual subsidy is set when Services Australia assesses your application, based on family income, the activity test, and the number of children in care.
Based on Child Care Subsidy rates effective from 7 July 2025 (FY 2025-26). Doesn’t include Free Kinder savings for 3-5 year olds, or the Higher CCS for second and subsequent children.
For an exact estimate, use the official Services Australia estimator Or just ring us on 03 5821 1711.
The calculator does not model Free Kinder savings, Higher CCS for second and subsequent children, or the Additional Child Care Subsidy (ACCS). These can reduce your out-of-pocket cost further. For an exact figure, ring us or use the Services Australia estimator.
Free Kinder: the other subsidy families miss
Separate from the federal CCS, the Victorian Government funds a kindergarten program that gives eligible 3- and 4-year-olds up to 15 hours of kinder per week at no additional cost to families. This is commonly called Free Kinder (formally, the Kindergarten Fee Subsidy).
At Guthrie Street, the funded hours are built into the standard Kindergarten program — there is no separate enrolment or application required through us. If your child is turning 4 before 30 April of the following year, they will likely be eligible for funded kinder hours in the year before they start school.
How Free Kinder interacts with CCS
The funded kinder hours are applied to your fees first. CCS is then calculated on the remaining balance. This means eligible kinder families can see significantly lower out-of-pocket costs than the calculator above suggests — the calculator does not model Free Kinder savings. If your child is approaching kindergarten age, call us and we can walk you through what it means for your specific situation.
How to apply for CCS
CCS is managed through Services Australia and your myGov account. The process is:
- 1
Set up a myGov account and link Centrelink.
If you don't already have a myGov account, create one at my.gov.au. Link it to Centrelink — this is where your CCS claim lives.
- 2
Submit a CCS claim through Centrelink.
In the Centrelink section of myGov, go to Apply for payment and choose Child Care Subsidy. You'll need your child's enrolment confirmed at a registered service (that's us).
- 3
Confirm your enrolment through us.
Once you're enrolled at Guthrie Street, we'll confirm your child's enrolment through our childcare management system. This triggers the CCS to start flowing.
- 4
The subsidy comes off your statement automatically.
Once active, you'll see the subsidy deducted directly from your fee statement. You never handle the money — it goes from Centrelink to us, and you pay the gap.
The most common delay we see is families waiting to submit their CCS claim until after enrolment. You can actually claim CCS before your child starts — the earlier you submit, the less catch-up there is once they begin.
What Shepparton families typically pay at Guthrie Street
Guthrie Street’s daily fees are $154 for Nursery & Toddler and $142.50 for Preschool & Kindergarten. Here are three realistic scenarios for a child attending four days a week:
Median Shepparton income
$100,000/yr combined
~$27/day
~$109/week · ~82% subsidy
4 days, Nursery & Toddler
Dual-income household
$160,000/yr combined
~$39/day
~$154/week · ~75% subsidy
4 days, Nursery & Toddler
Higher income
$250,000/yr combined
~$66/day
~$265/week · ~57% subsidy
4 days, Nursery & Toddler
These are estimates based on current CCS rules and Guthrie Street’s 2025–26 fees. Actual amounts are determined by Services Australia and may differ based on activity test hours, additional children, and annual CPI indexation. Use the calculator above for your own estimate, or call us for a walkthrough specific to your family.
Common questions about CCS in Shepparton
Does the Child Care Subsidy apply to Bush Kinder sessions?
Yes. Bush Kinder is part of Guthrie Street's standard Kindergarten program and is included in the session fee. CCS applies in the usual way — there is no separate Bush Kinder charge.
My partner is on parental leave. Does that affect our CCS?
Parental leave counts as activity for the CCS activity test, so your subsidised hours are typically unaffected while on paid parental leave. Unpaid leave is more nuanced — Services Australia assesses this on a case-by-case basis. The January 2026 change (72 hours guaranteed) means even families with minimal activity get substantial subsidised hours.
We have two children in care. Does that change anything?
Yes — the Higher Child Care Subsidy applies to second and subsequent children under school age in the same family. It can significantly reduce your out-of-pocket costs for the younger child. The calculator above only models one child; talk to us or Services Australia if you have multiple children in care.
Can I still get CCS for casual or part-time care?
Yes. CCS applies regardless of whether your child attends full-time or part-time, as long as both you and your child meet the eligibility criteria. The number of subsidised hours is tied to your activity test result, but the January 2026 guarantee means the floor is 72 hours per fortnight regardless.
When does CCS start after I enrol?
CCS is applied from the date your claim is assessed by Services Australia, not from the date your child starts care. Submit your claim as early as possible — ideally before your child's first day — to avoid paying full fees while waiting for processing.
Want to see our full fees and what’s included?
Meals, nappies, sunscreen, Bush Kinder — it’s all included in one daily fee. No extras.
See fees & inclusions