can grandparents provide childcare and still get CCS?

formal vs informal care: why it matters for CCS

the Child Care Subsidy only applies to care provided by an approved child care service — a provider registered with the Australian Government under the Family Assistance Law. this includes:

• centre-based day care
• family day care (through an approved scheme)
• in-home care (through an approved provider)
• outside school hours care

informal careis everything else: grandma looking after the kids on Tuesdays, the neighbour who babysits, your sister doing school pickup. these arrangements — no matter how regular or reliable — don't qualify for CCS because they're not delivered through an approved service.

this isn't a judgment on quality. plenty of grandparents provide excellent care. it's purely about the regulatory framework the subsidy sits within.

when grandparent care qualifies for CCS

grandparent-provided care can attract the Child Care Subsidy in specific circumstances:

• the grandparent is a registered family day care educator — they operate through an approved family day care scheme, have the required qualifications, and care takes place in an assessed home environment
• the grandparent works at an approved centre — if grandma works as an educator at a long day care centre and the child attends that centre, CCS applies (the subsidy is attached to the service, not the individual educator)

the critical point: CCS follows the service, not the person providing the care. a grandparent providing care outside an approved service cannot attract CCS regardless of their qualifications or experience.

how a grandparent can register as family day care

family day care is the most realistic pathway for grandparents who want their care to attract CCS. here's what's involved:

1. join an approved family day care scheme— you can't operate independently. you need to be affiliated with an approved service that oversees and supports you
2. meet qualification requirements — at minimum, you need a Certificate III in Early Childhood Education and Care (or be actively working towards it). some schemes require additional qualifications
3. get a Working with Children Check — mandatory in all states and territories, plus a national police check
4. hold current first aid certification — including CPR and anaphylaxis/asthma management
5. have your home assessed— the scheme will assess your home for safety, space, and suitability. you'll need to meet specific requirements for indoor and outdoor play areas, fencing, and storage
6. comply with the National Quality Framework— as a registered educator, you'll need to follow the NQF including programming, documentation, and ratio requirements

this isn't a light commitment. family day care educators are running a small business. they have documentation obligations, regular assessments, and ongoing professional development requirements. but for grandparents who are already providing regular care and want to formalise it, it can be a genuine option.

the maximum number of children a family day care educator can care for is seven, with no more than four being preschool age or under.

restrictions and things to watch

there are specific rules designed to prevent misuse of family day care for CCS purposes:

• conflict of interest provisions — some family day care schemes have rules about providing subsidised care to your own grandchildren. the Department of Education monitors arrangements where the educator and the family receiving CCS are related
• the care must be genuine— Services Australia audits family day care arrangements. if the care is a paper-only arrangement designed to claim CCS without genuine education and care being provided, it's fraud
• compliance history — the family day care sector has been subject to significant compliance action in recent years. the government has tightened rules after identifying rorting in some schemes

the bottom line: if a grandparent genuinely wants to provide quality early education as a registered educator, the pathway exists. but setting up a family day care arrangement purely to claim CCS on existing informal care is not what the system is designed for — and Services Australia knows the difference.

grandparents as primary carers

if a grandparent is the primary carer of a child (not just providing occasional care, but actually raising the child), they may be eligible for a range of payments in their own right:

• Child Care Subsidy— as the child's primary carer, the grandparent can claim CCS to send the child to an approved service
• Family Tax Benefit— Part A and Part B, based on the grandparent's income and care arrangements
• Grandparent, Foster and Kinship Carer Adviser — Services Australia has a dedicated line (1800 245 965) for grandparent carers to access specialised support
• Health Care Card — grandparents receiving FTB may qualify for a Health Care Card for the child

use our Child Care Subsidy calculator to estimate what subsidy a grandparent primary carer would receive.

frequently asked questions