Calculating fee relief payment
Fee relief funding rates
In 2026, there will be two categories of Fee Relief Payment:
- Children eligible for the maximum fee relief rate can receive up to:
- $2,563 per year for children aged 4 and above
- $769 per year for children aged 3 years old
- All other children can receive up to:
- $1,783 per year for children aged 4 and above
- $423 per year for children aged 3 years old
Children eligible for the maximum rate of fee relief are:
- All Aboriginal and/or Torres Strait Islander children
- Children that attend a service:
- located in an Inner Regional, Outer Regional, Remote and Very Remote region in NSW based on 2021 Accessibility/Remoteness Index of Australia (ARIA+) produced by the University of Adelaide (Australian Centre for Housing Research) and used by the Australian Bureau of Statistics
- located in a geographic area (Statistical Area Level 2) with a Socio-Economic Indexes for Areas (SEIFA) Decile of 1 or 2 (ranking within NSW) on the Index of Relative Socio-Economic Disadvantage 2021
- operated by an Aboriginal Community Controlled Organisation.
Case study 1 – 4YO+ Fee Relief Payment
Example using funding rate for children eligible for maximum funding
A family sends their child (birthdate, 23 July 2021) to a long day care preschool program with a daily session fee of $150. The service has a Socio-Economic Indexes For Areas (SEIFA) decile of 2. The family receives the Child Care Subsidy (CCS), and after applying the CCS, this leaves the family to pay a daily fee of $110. The child attends the service 4 days a week and has a total weekly fee of $440. The service operates for 49 weeks per year and does not charge any additional fees.
Calculating 4YO+ Fee Relief Payment over 49 weeks
| Steps | Payment |
|---|---|
| 1. Confirm the child’s eligibility and ensure the 2026 Fee relief declaration and consent form (PDF 386 KB) is signed. | The child is eligible for 4YO+ Fee Relief as the child’s birthdate is on or before 31 July 2022. |
| 2. Confirm the annual flat rate allocation for the child. | Refer to Section 7.1 and Table 4 in Section 7.5 in the 2026 guidelines. Refer to your service's Profile letter and funding allocation letter email. A child is eligible for the maximum rate of fee relief funding if you answer YES to one of the following questions:
The annual flat rate allocation is the 4YO+ Fee Relief Payment flat rate for ‘children eligible for maximum payment’ of $2,563. |
| 3. Calculate weekly fee relief available to the child. | $2,563 accessed over 49 weeks = $52.31 available to this family per week. |
| 4. Calculate weekly fee after CCS applied. | $110 x 4 days = $440. |
| 5. Apply fee relief to weekly fee. | $440 - $52.31 = $387.69. Family to pay $387.69 per week This is the amount of the gap fee which is what families pay after the Child Care Subsidy and fee relief have been applied. |
Case study 2 – 4YO+ Fee Relief Payment
Example using funding rate for all other children
A carer sends their child (birthdate, 5 March 2022) to a long day care preschool program with a daily session fee of $137. The service has a SEIFA decile of 9. The carer receives CCS. After the CCS has been applied to the daily session fee, the carer has a daily gap fee of $26.45. The child attends the service one day a week, for a total weekly fee of $26.45. The service operates for 52 weeks per year and does not charge any additional fees.
Calculating 4YO+ Fee Relief Payment over 52 weeks
| Steps | Payments |
|---|---|
| 1. Confirm the child’s eligibility and ensure the 2026 Fee relief declaration and consent form (PDF 386 KB) is signed. | The child is eligible for 4YO+ Fee Relief as the child’s birthdate is on or before 31 July 2022. |
| 2. Confirm the annual flat rate allocation for the child. | Refer to Section 7.1 and Table 4 in Section 7.5 in the 2026 guidelines. Refer to your service's Profile letter and funding allocation letter email.
The annual flat rate allocation is the 4YO+ Fee Relief Payment flat rate for ‘all other children’ of $1,783. |
| 3. Calculate weekly fee relief available to the child. | $1,783 accessed over 52 weeks = $34.29 available to this family per week. |
| 4. Calculate weekly fee after CCS. | $26.45 x 1 day = $26.45 |
| 5. Apply fee relief to weekly fee. | $26.45 - $34.29 = $7.84 per week remaining fee relief funds. Carer to pay $0 |
6. Apply remaining fee relief funds to additional fees imposed on the child. Where a family’s gap fees have been reduced to zero in a regular billing period, the provider may spend remaining fee relief funds to cover any additional charges imposed on the eligible child such as levies, and only up to the maximum amount of fee relief for that child. |
No additional fees. $7.84 per week remaining fee relief funds |
7. Remaining fee relief funds from the 4YO+ Fee Relief Payment for the eligible child may then be used to cover any shortfall in total 4YO+ Fee Relief Payment funding to the service for other eligible 4YO+ children. Follow remaining fee relief funds guidelines as per Section 9.7.2 Where gap fees have been reduced to zero |
After covering a shortfall, if there is any funds remaining from the $7.84, these are unspent funds and may need to be returned to the department. |
Case study 3 – 3YO Fee Relief Trial Payment
Example using funding rate for children eligible for maximum funding
A family sends their child (birthdate, 1 April 2023) to a long day care preschool program with a daily session fee of $115. The child is Aboriginal and from the Darug Nation. The family do not receive the Child Care Subsidy (CCS), leaving them to pay a daily fee of $115. The child attends the service 2 days a week, for a total weekly fee of $230. The service operates for 50 weeks per year and does not charge any additional fees.
Calculating 3YO Fee Relief Trial Payment over 50 weeks
| Steps | Payment |
|---|---|
| 1. Confirm the child’s eligibility and ensure the 2026 Fee relief declaration and consent form (PDF 386 KB) is signed. | The child is eligible for 3YO Fee Relief Trial funding as the child’s birthdate is between 1 August 2022 and 31 July 2023. |
| 2. Confirm the annual flat rate allocation for the child. | Refer to Section 7.1 and Table 4 in Section 7.5 in the 2026 guidelines. Refer to your service's funding allocation letter email. A child is eligible for the maximum rate of fee relief funding if you answer YES to one of the following questions:
The annual flat rate allocation is the 3YO Fee Relief Trial Payment flat rate for ‘children eligible for maximum payment’: $769. |
3. Calculate weekly fee relief available to the child. Refer to Table 4 in Section 7.5 in the 2026 guidelines. |
$769 accessed over 50 weeks = $15.38 available to this family per week. |
| 4. Calculate weekly fee after CCS. | $115 x 2 days = $230. |
| 5. Apply fee relief to weekly fee. | $230 - $15.38 = $214.62. Family to pay $214.62 per week. This is the amount of the gap fee which is what families pay after the Child Care Subsidy and fee relief have been applied. |
Case study 4 – 3YO Fee Relief Trial Payment
Example using funding rate for all other children
A parent sends their child (birthdate, 7 June 2023) to a long day care preschool program with a daily session fee of $120. The service has a SEIFA decile of 7. The parent receives CCS. After the CCS has been applied to the daily session fee, the carer has a daily gap fee of $25.00. The child attends the service one day a week, for a total weekly fee of $25.00. The service operates for 49 weeks per year; however, the child was enrolled for 30 weeks of the year. The service does not charge any additional fees.
Calculating 3YO Fee Relief Trial Payment over 49 weeks
| Steps | Payment |
|---|---|
| 1. Confirm the child’s eligibility and ensure the 2026 Fee relief declaration and consent form (PDF 386 KB) is signed. | The child is eligible for 3YO Fee Relief Trial funding as the child’s birthdate is between 1 August 2022 and 31 July 2023. |
2. Confirm the annual flat rate allocation for the child. Note that the child is only eligible for a portion of the annual flat rate for the 30 weeks they are enrolled (see Step 3). |
Refer to Section 7.1 and Table 4 in Section 7.5 in the 2026 guidelines. Refer to your service's funding allocation letter email.
The annual flat rate allocation is the 3YO Fee Relief Trial Payment flat rate for ‘all other children’: $423. |
| 3. Calculate weekly fee relief available to the child. | $423 accessed over 49 weeks = $8.63 available to the parent per week for the 30 weeks of enrolment. |
| 4. Calculate weekly fee after CCS. | $25.00 x 1 day = $25.00. |
| 5. Apply fee relief to weekly fee. | $25.00 - $8.63 = $16.37. Family to pay $16.37 per week. This is the amount of the gap fee which is what families pay after the Child Care Subsidy and fee relief have been applied. |