Child Care Subsidy Estimator

The Child Care Subsidy (CCS) is a means-tested payment from the Australian Government that reduces the cost of approved child care for eligible families. The subsidy is paid directly to your approved child care provider, who passes the reduction on to you as a lower fee. The percentage you receive depends on your family's combined annual income, with lower-income families generally receiving a higher rate. Services Australia assesses your entitlement when you apply through myGov.

Under the 3-Day Guarantee (effective 5 January 2026), every eligible family receives a minimum of 72 subsidised hours per child per fortnight - equivalent to three days a week of care - regardless of activity levels. Families where each parent or carer (or the sole parent) does more than 48 hours of recognised activity per fortnight - such as paid work, study, training, job seeking, or volunteering - qualify for 100 subsidised hours per child per fortnight. For a couple, both partners must each meet the 48-hour threshold; it is not a combined total.

If you have two or more children aged 5 or under in approved care at the same time, the younger children (2nd and subsequent) may receive a higher subsidy rate under the higher CCS loading. The eldest child always receives the standard rate based on family income. The loading applies additional percentage points for younger siblings and is designed to ease the burden of multiple young children in care at the same time. The higher rate only applies when family income is below a certain threshold and phases out gradually above that level. In Home Care is always paid at the standard rate, because it is subsidised for the whole family rather than for each child.

The government sets a maximum hourly rate (the cap) for each type of approved care - Centre Based Day Care, Outside School Hours Care, Family Day Care, and In Home Care. The CCS is only calculated on the capped rate, even if your provider charges more. The difference between the provider's fee and the cap is called a gap fee, and it is always your responsibility to pay in full. For example, the 2026-27 Centre Based Day Care cap for a child below school age is $15.19 per hour. If your centre charges $18 per hour, the subsidy only applies to $15.19 and you pay the $2.81 gap fee directly, in addition to your share of the capped portion.

Services Australia withholds 5% of your Child Care Subsidy by default. This is to reduce the risk of you building up a debt at the end of the financial year if your circumstances change - for example if your income turns out to be higher than estimated. The withheld amount is paid to you after your income is confirmed for that year. The estimates shown in this tool are based on the full subsidy percentage before withholding, so your actual fortnightly out-of-pocket cost may be slightly higher than shown.

The subsidy rates, income thresholds, and hourly rate caps are based on the 2026-27 financial year figures from Services Australia and the Department of Social Services Family Assistance Guide, verified in June 2026. The 3-Day Guarantee subsidised-hours rules are effective from 5 January 2026. CCS rates are indexed annually (usually effective the first Monday in July). Check the latest figures at servicesaustralia.gov.au or startingblocks.gov.au before making financial decisions.