Free Kinder & Child Care Subsidy — What Victorian Families Get

Childcare & Kinder9 min readmelbourne.baby editorial

Victoria now funds Free Kinder for 3- and 4-year-olds, and the Commonwealth Child Care Subsidy cuts day-care fees. Here's how both work, who's eligible, and how to actually claim them.

Editorial provenance · how this guide was made
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melbourne.baby editorial
Last updated
1 June 2026

There are two completely separate pots of money that help Victorian families with early education and care. People constantly confuse them. Here's the clean version.

1. Free Kinder (Victorian Government)

Victoria funds Free Kinder — a funded kindergarten program for 3- and 4-year-olds, delivered either in a standalone kindergarten or inside a long day care centre.

  • 4-year-old kinder: the year before school. Free Kinder funding removes (or heavily reduces) the program fee — typically worth around $2,000+ a year per child.
  • 3-year-old kinder: now rolled out statewide, with funded hours building toward 15 hours a week.
  • It runs through both standalone sessional kinders (the classic 3-hour sessions) and long day care centres that deliver a funded kinder program inside their day.

The catch most people miss: "Free" covers the *kindergarten program*. If your child does kinder *inside* a long day care centre, you still pay day-care fees for the wrap-around hours — but the Child Care Subsidy (below) then applies to those.

2. Child Care Subsidy — CCS (Commonwealth)

The Child Care Subsidy is federal money that reduces the cost of approved long day care, family day care, outside-school-hours care, and in-home care. It's paid directly to your provider, lowering your weekly fee.

How much you get depends on: - Family income — lower income, higher percentage subsidised (up to ~90%), tapering as income rises. - Activity test — your (and your partner's) hours of work, study, training, or volunteering determine how many subsidised hours you get each fortnight. - Number of children — families with more than one child under 5 in care get a higher rate for the younger children.

How to actually claim them

Free Kinder 1. **Enrol in a kindergarten program** — through your council's central enrolment scheme, or directly with a kinder / day care. 2. **Put your name down early.** Popular inner-Melbourne kinders take registrations 1-2 years ahead. Register with your **council's central kinder enrolment** as soon as your child turns 3 (some councils take registrations from birth). 3. Free Kinder funding is applied by the service — you don't lodge a separate claim, but confirm with the centre that the program is funded.

Child Care Subsidy 1. **Set up a Centrelink online account** through myGov and link it to Centrelink. 2. **Make a CCS claim** before or soon after your child starts care — it can take a few weeks to process. 3. **Confirm your enrolment** when the provider sends the digital enrolment notice. 4. **Keep your income estimate up to date** — Services Australia reconciles at tax time and over-estimating saves a debt.

Timing it with the waitlist reality

Melbourne childcare waitlists are brutal — see our dedicated childcare waitlists guide. The practical move:

  • Register for council central kinder enrolment the moment your child turns 3 (earlier where allowed).
  • Get on 2-3 long day care waitlists during pregnancy or the early months if you'll need care.
  • Lodge your CCS claim as soon as you've accepted a place — don't wait for the first invoice.

Quick "which applies to me?" table

  • Standalone 3-hour kinder, no day care: Free Kinder covers it. CCS doesn't apply.
  • Kinder program inside long day care: Free Kinder covers the program; CCS reduces the rest of the day's fees.
  • Long day care, no kinder program yet (under 3): CCS only.

Where to find places

Browse funded kinders and early learning centres in the directory, and read about choosing between Montessori, Steiner, and play-based programs.

Disclaimer: melbourne.baby is a community platform — information is general and not financial or government advice. Check vic.gov.au and servicesaustralia.gov.au for current rates and eligibility, which change.