Childcare Gap Fees Explained for Families – How much will childcare cost you?

Looking at childcare prices online can be confusing. The daily rates can look high, and it’s hard to know how much you’ll actually have to pay. Between government subsidies and state programs, it’s tricky to figure out the real cost.

At Edge Early Learning, we’re here to help. Let’s break it down so it’s easy to understand.

1. The “Gap Fee” — your real cost

There are two parts to childcare fees:

• Our centre’s daily fee
• The amount you pay after subsidies

The Child Care Subsidy (CCS) from the federal government is the main support that lowers your out‑of-pocket cost. It’s paid directly to your childcare provider to reduce your bill. What you pay after that is called the gap fee, this is the cost you actually see on your invoice.

From early 2026, every family eligible for the CCS gets at least 72 hours of subsidised care per fortnight (at least three days a week), even if you’re not working or studying. That makes the subsidy easier to use and more predictable. If you and your partner do enough recognised activity hours or you care for an Aboriginal and Toress Strait Islander child, you can get up to 100 hours subsidised per fortnight.

The subsidy amount depends on:

• Your family income
• How many children under school age you have in care
• The type and hours of childcare you choose

This means two families in the same centre can pay very different gap fees.

Calculate your CCS with our Child Care Subsidy calculator.

2. State supports that make childcare cheaper

Queensland: Free Kindy* + CCS

Queensland offers a government-funded Free Kindy* program:

• 15 hours per week of Kindy are free for eligible children (40 weeks a year).
• At Edge Early Learning, this usually looks like two 7.5‑hour funded sessions each week. We’re one of the only long daycare providers that offer these 7.5-hour sessions.
• For families wishing to attend longer than 7.5 hours per day, or more than 2 days per week, the CCS still applies to reduce the gap in hours outside the Free Kindy hours.

*The Queensland Government’s Free Kindy subsidy totals 600 hours of subsidised Kindergarten per year. Learn more about Queensland’s Free Kindy Program.

So, if your child is in long daycare three days a week, two of those days have Kindy hours that are partially or fully funded by the state, and CCS helps cover the rest.

ACT: 3-year-old Preschool + CCS

Your 3-year-old can get up to 300 hours per year of subsidised preschool funded by the ACT Government. That works out to roughly 7.5 hours per week across the year. Learn more about ACT 3-year-old Preschool.

3. Example costs — what families typically pay

Here’s an easy way to think about it:

Families earning up to $85,279 per year

If your combined household income is under $85,279, you could receive a subsidy of up to 90% for most hours of care.

For families with more than one child in care, the highest subsidy of 95% applies to the second child (or any younger children if you have more than two).

This means you might only pay a small gap fee — often just a few dollars per hour or even less.

Families earning over $85,280 per year

With a combined income a bit higher, the subsidy tapers gradually, so you might pay a larger gap, but CCS still makes a big difference compared with the headline price.

Check out some more examples of CCS calculations to better understand the childcare subsidy.

4. Daily life — what to expect on your bill

• Every centre sets a daily fee. Find an Edge Early Learning centre near you to view our fees and inclusions.
• CCS is applied, based on your family’s income and eligible hours.
• You pay the gap fee, which is the remaining amount, often much less than the headline fee.

If your child is in a program like Queensland’s Free Kindy, that further reduces what you pay, because the state covers a portion of the cost after CCS is applied.

5. Tips to manage costs

Maximising your CCS isn’t just about income, it can also come down to how you schedule your child’s care. Families can benefit by:

• Planning your care hours carefully — spreading hours across the week or aligning with standard care blocks can help make the most of your subsidy.
• Considering sibling arrangements — if you have multiple children in care, the CCS rules can give higher subsidies for the second (or younger) child.
• Use funded programs like Free Kindy in QLD, if your child is eligible.
• Check your CCS eligibility early, the sooner Centrelink has your details, the sooner cheaper fees kick in.

By thinking strategically about hours and siblings, families can reduce out-of-pocket costs while making the most of their subsidy.

Childcare fees – Edge Early Learning

So, basically, you don’t usually pay the full daily advertised rate, you pay the gap after CCS (and any state funding like Free Kindy) is applied. How much you pay for childcare depends on your income, how many hours your child attends and what subsidies are available in your state.

Contact your local Edge Early Learning centre to learn more.