Moving your child from a toddler room to primary school is a milestone for them, but a logistical minefield for your bank account. The government changes the rules at every step. Here is the technical breakdown of how the math shifts as your child grows.
1. The Toddler Room (0-3 Years)
At this stage, your calculation is dominated by the Child Care Subsidy (CCS) Income Taper.
If your family earns $85,279 or less, you receive the maximum 90% subsidy. However, for every $5,000 you earn above that, your subsidy drops by 1%.
- The Mechanic: Most centres charge daily rates that exceed the government’s $14.63 hourly cap.
- The Reality: If your centre charges $180 for a 10-hour day ($18/hr), the government only subsidizes 90% of the $14.63 cap, which means you pay the $3.37 gap plus your 10% co-contribution.
2. The Preschool Peak (4-5 Years)
Participation hits 87% here. The math stays largely the same for Centre-Based Day Care ($14.63 cap), but the "Activity Test" becomes critical.
To access the full 100 hours of subsidized care, both parents must meet activity requirements (work, study, or volunteering). Since Jan 5, 2026, the 3-Day Guarantee ensures all families get at least 72 hours, but if you’re working full-time, you need to audit your activity to ensure you don't lose that final 28-hour block.
3. The Primary School Shift (6+ Years)
This is where most families get caught out. The moment your child starts school, they are reclassified as "School Aged."
- The Cap Drop: The hourly cap for subsidy drops from $14.63 to $12.81 for Outside School Hours Care (OSHC).
- The Logic Trap: Even if your child is still five when they start Prep/Kindergarten, the "School Aged" rate applies from day one of attendance.
If your OSHC provider charges a premium rate for after-school care, your out-of-pocket costs will spike because of this lower cap. You aren't just paying more; you're getting less subsidy per hour.
Don't Get Hit with a "Debt of Logic"
The transition to school is the #1 cause of Centrelink overpayments. Families forget to update their child’s status, leading to a debt that is only discovered months later.
entitlemate tracks these transitions automatically. Your Digital Twin knows when your child starts school and adjusts the caps in real-time.
Stop guessing. Check your real position in the entitlemate app today.