Juggling work and school holidays can be tricky for many families. You want your child to have a great experience, but you also have work, deadlines and a budget that doesn't stretch as far as you'd like. At the Y, many families have told us about this challenge, so if you're feeling this way, you're not alone.
Here's something that might change how you're thinking about holiday programs: Child Care Subsidy (CCS) applies to school holiday programs. This means the cost of a quality program at the Y may be much lower than you think.
Key things to know
- Child Care Subsidy (CCS) applies to approved Outside School Hours Care (OSHC) programs, which includes school holiday programs at the Y.
- Depending on your family's income and circumstances, CCS can reduce your out-of-pocket costs.
- CCS can make quality holiday programs more accessible than many families realise.
In this article
- What is Child Care Subsidy (CCS)?
- How do you check your CCS eligibility?
- Does Child Care Subsidy apply to school holiday programs?
- How could CCS affect your family's out-of-pocket costs?
- How to estimate your out-of-pocket costs
- Tips to reduce your out-of-pocket costs
- Why is the Y's holiday program worth it?
- How to enrol and claim CCS for holiday programs
What is Child Care Subsidy (CCS)?
Child Care Subsidy is an Australian Government payment that helps eligible families cover the cost of approved child care. In most cases, it's paid directly to your child care provider, reducing the fee you're charged.
The amount of subsidy you receive depends on three main factors:
- Your family's combined annual income: Higher income generally means a lower subsidy percentage.
- Your activity level: The number of hours of subsidised care you can access is linked to the combined work, study, training or volunteering hours of the adults in your household.
- The type of care: Approved Outside School Hours Care services are eligible for CCS, which includes school holiday programs run by the Y.
How do you check your CCS eligibility?
The fastest way to check your CCS eligibility is through your myGov account, linked to Centrelink. From there, you can:
- Confirm whether you are already receiving CCS for your child.
- Check your subsidy percentage based on your current income estimate.
- Review your activity test result to understand how many subsidised hours you are entitled to.
If you haven't yet applied for CCS, you can do so through Services Australia via myGov. The process takes most families around 20 minutes and can be completed online.
If you are unsure, please get in touch with us. We are happy to help you understand how CCS applies to our program and what to expect on your account.
Does Child Care Subsidy apply to school holiday programs?
Child Care Subsidy (CCS) applies to many school holiday programs, not just regular OSHC. If your child attends an approved Outside School Hours Care (OSHC) service during the school holidays, you may be able to claim CCS and reduce your out-of-pocket costs by up to 90%. Many families miss out simply because they do not know the subsidy extends beyond before and after school programs.
Just make sure that your provider is CCS-approved before booking. You can check whether they are approved using the Starting Blocks website, which is the Australian Government's official early childhood search platform.
The important distinction to make is this:
- CCS-approved school holiday care and OSHC services. The subsidy applies.
- Ad hoc recreation programs, private sports camps or community activity programs that are not CCS-registered - The subsidy does not apply.
It is also worth noting that the number of subsidised hours available during school holidays may differ from the school term, depending on your activity test result. Checking your entitlement ahead of the holiday period will give you a clearer picture of what you will pay.
How could CCS affect your family's out-of-pocket costs?
The subsidy percentage ranges from around 90% for lower-income families to lower percentages for higher-income households.
According to Services Australia, families earning under $80,000 per year (combined) may receive a subsidy of up to 90% of eligible fees. Families who earn more than $538,520 are not eligible for CCS, although they can still apply in case they happen to earn less that year.
To illustrate how CCS may reduce your out-of-pocket costs, consider the following example: If a holiday program day costs $100, a family receiving a 75% subsidy may pay around $25 out-of-pocket, while a family receiving a 90% subsidy may pay around $10 out-of-pocket. These figures are examples only. Actual CCS payments are calculated by Services Australia and may vary depending on your family's circumstances, including your CCS entitlement, activity hours, enrolment status, and any withholding applied to your subsidy.
How to estimate your out-of-pocket costs for school holiday care
School holiday costs after CCS depend on five things:
1. Your family's combined income
This determines your CCS percentage. The higher your income, the lower your subsidy. Services Australia uses your estimated combined adjusted taxable income (ATI) to calculate your CCS percentage.
2. The government's hourly rate cap
CCS does not subsidise a provider's full fee if that fee exceeds the government's hourly rate cap. The subsidy is calculated on whichever is lower: the provider's actual hourly rate or the rate cap.
If a provider charges more per hour than the cap, the gap above the cap is an additional out-of-pocket cost on top of your normal gap fee.
3. The provider's daily fee
Providers set their own fees independently. School holiday daily fees vary significantly across Australia and between provider types.
A standard in-centre day typically runs between $70 and $110. Excursion days, where children attend an activity or outing, often cost $130 to $180 or more.
Higher daily fees or shorter daily sessions are more likely to push the per-hour rate above the government cap, leaving more of the fee unsubsidised.
Always ask the provider for a full fee schedule before booking, including whether excursion costs are included in the session fee or charged separately.
4. Your child's session length
CCS is calculated per hour, so the length of a school holiday session will affect how many subsidised hours you use from your fortnightly entitlement.
Most full-day school holiday sessions run between eight and ten hours. For example, a ten-hour day uses ten hours of your fortnightly subsidy entitlement. A six-hour day uses six.
5. How many subsidised hours you have available each fortnight
As of 5 January 2026, the CCS activity test was replaced with a simpler two-tier system. All CCS-eligible families now receive at least 72 hours of subsidised care per fortnight. This is called the 3 Day Guarantee.
The fortnight trap for school holidays: CCS hours are counted by CCS fortnight, not by calendar week. Two consecutive weeks of full-day school holiday care, for example five ten-hour days per week, can total 100 hours in a single fortnight. If your entitlement is 72 hours, 28 of those hours will not be subsidised and you pay the full provider rate for them.
So, what might my costs be?
The easiest way to estimate your costs is to use the Child Care Subsidy calculator on the Starting Blocks website.
To estimate your costs manually, follow these steps:
- Divide your provider's daily fee by the session length in hours to get the hourly rate.
- Compare that hourly rate to the government's hourly cap for your care type.
- Multiply the lower figure by your CCS percentage to get the subsidy per hour.
- Subtract the subsidy from the provider's actual hourly rate to get your hourly gap.
- Multiply the hourly gap by the session length for your daily out-of-pocket cost.
It is also worth considering additional costs such as:
- Enrolment and registration fees
- Meal and snack costs
- Late pick-up fees
- Program-specific levies
You can ask your provider about any additional costs before you book.
Here is a practical example:
A family with a combined income of around $80,000 would likely receive close to the maximum 90% subsidy. If their CCS-approved holiday program charges $150 per day, they could pay as little as $15 to $30 out of pocket for that day, depending on hourly rate caps and session hours.
For most Australian families, the out-of-pocket cost per day sits between $20 and $60, but it can run higher if your provider's fees exceed the government's hourly rate cap or if you book across two full weeks in the same CCS fortnight.
Tips to reduce your out-of-pocket costs
- Book early so you don't miss out on sessions that fit your price range.
- Compare providers to find a holiday program that fits your budget.
- Mix in-centre days with excursions, as in-centre days often have lower fees.
- Keep your income up to date in Centrelink so that your income estimate is accurate.
Why is the Y's holiday program worth it?
Beyond the subsidy, it helps to know what your child gets from attending a holiday program.
The Y's school holiday programs are built around three types of days: excursions, incursions and in-house days.
- Excursion days take children to places like the zoo, local farms, the cinema and ninja parks.
- In-house days bring creativity and sport into the Y's program space. Your child could take part in seasonal activities, arts and crafts, team games, sports and more.
- Incursion days also take place in the Y's program space, with activities run by external providers. Examples include wildlife visits, magic shows and dance, STEM and circus-themed incursions.
Qualified educators supervise every program. They hold current Working with Children Checks and first aid qualifications. Our educator-to-child ratios also meet regulated standards, and we have sign-in and sign-out procedures in place for every session.
For families where a parent or carer needs to work during the holidays, school holiday programs offer peace of mind. Your child is in a safe, stimulating environment with people who truly care about their experience.
For children, it offers something different. They can have fun, make friends and grow in confidence by trying something new in a supportive setting.
How to enrol and claim CCS for a holiday program
Claiming CCS for a school holiday program follows the same process as regular subsidised care.
Here's how it works:
- Find a CCS-approved holiday program. You can ask the provider directly whether they are an approved provider.
- Enrol your child with the provider. Complete the provider's enrolment form and provide the details they need.
- Link your CRN and your child's CRN in myGov. Log in to your myGov account linked to Centrelink and confirm the enrolment. If you have a partner, their CRN may also need to be linked.
- Confirm enrolment through Centrelink. The provider will submit the enrolment, and you will need to confirm it in your Centrelink online account via myGov.
- Pay only the gap fee. Once enrolment is confirmed, CCS is applied automatically to eligible sessions.
If you are new to CCS, you will also need to submit a claim for the subsidy through myGov before the subsidy can be applied.
Book now and make the most of your subsidy
Holiday spots at the Y fill quickly. Getting in early means you can plan around your work schedule with confidence and make the most of whatever CCS entitlement applies to your family.
Check your subsidy, then find a Y holiday program near you to get started. Experience a holiday full of adventure, for less than you might think!
