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Childcare in Australia is expensive enough without guessing what the government will cover. The rules changed significantly on 5 January 2026, and a lot of older advice online is now wrong.
Here is the current picture, in plain English. Rates and thresholds are indexed, so check the Services Australia pages before you make a decision.
What changed in January 2026#
The old Child Care Subsidy activity test has been replaced by the 3 Day Guarantee.
Under the guarantee, all families eligible for CCS can get at least 72 hours of subsidised child care per fortnight — roughly three days a week — regardless of how much they work, study or volunteer.
Families with more than 48 hours of recognised participation per fortnight can get up to 100 hours per fortnight. The same applies to families caring for an Aboriginal and/or Torres Strait Islander child, families with approved exemptions, and some families receiving Additional Child Care Subsidy.
The important catch: the 3 Day Guarantee changes the number of hours that can be subsidised. It does not change the percentage of fees that CCS covers. That is still income-tested.
How the CCS percentage works#
For 2026–27, the standard CCS rate is:
| Family income | CCS percentage |
|---|---|
| $0 to $88,520 | 90% |
| Above $88,520 | Steps down by 1 percentage point for every $5,000 of income |
| $538,520 or more | 0% |
So a family earning $138,520 would be $50,000 above the threshold, which is 10 steps of $5,000, giving a CCS rate of 80%. A family earning $238,520 would be at 60%.
These are the standard rates. Families with more than one child in care may get a higher rate for younger children, up to 95%. The higher rate has its own income bands and taper. If you have two or more children in care, check your assessment carefully rather than assuming the standard rate.
Your percentage is based on your family's combined income, not just the parent who fills in the form.
What the subsidy actually covers#
CCS is paid towards the cost of approved child care. It is calculated on the service's fee, up to an hourly rate cap set by the government. If a service charges more than the cap, you pay the difference.
The practical number is the gap fee: the amount you pay after the subsidy. Two services can have the same headline daily fee and very different gaps, depending on their hourly rate, opening hours, extras and what the subsidy covers.
Ask each service for:
- its hourly and daily fees
- the estimated gap for your child, based on your CCS percentage
- whether fees are charged for public holidays, absences or the weeks between Christmas and New Year
- whether there is an enrolment fee, bond or annual levy
- what happens if you are late collecting your child
Get the gap estimate in writing if you can. “We accept CCS” does not tell you what you will pay.
The types of care that may be subsidised#
- Long day care: centre-based care, usually for children from six weeks to school age.
- Family day care: care in an educator's home, usually in a small group.
- Outside school hours care (OSHC): before and after school, and vacation care.
- Preschool or kindergarten: often a shorter day or year, and the funding model varies by state and territory. Some preschool programs are free or low cost.
- In-home care: for families who meet specific eligibility criteria.
Not all care is approved for CCS. A nanny, for example, is generally not covered unless they work through an approved service. Always check the service's approval status before you sign.
How to apply#
- Create or log in to myGov and link Centrelink.
- Get a Customer Reference Number (CRN) for you and your child if you do not have one.
- Submit a claim for Child Care Subsidy and provide your family income estimate.
- Meet the immunisation requirements for your child.
- Choose an approved service and give them your CRN and details.
- Confirm your income after the end of the financial year so your payments are balanced.
Apply before your child starts care if you can. Claims can take time to process, and you may be charged full fees in the meantime.
Choosing a service: what to ask beyond the waitlist#
Quality matters more than a shiny building. In Australia, services are assessed against the National Quality Standard and given a rating. You can look up a service's rating through ACECQA and your state or territory regulator.
Ask:
- What is the educator-to-child ratio in my child's room?
- How long have the educators in this room worked here?
- How do you settle new children, and can we do orientation visits?
- How do you communicate with families during the day?
- What is the policy on food, allergies, medication and illness?
- How do you handle sleep and rest for babies?
- What happens if my child is unwell or needs to be collected?
- What are the fees, extras and absence policies?
Visit at drop-off or pick-up time if you can. The atmosphere at those transitions tells you more than a polished tour.
Waitlists, fees and the Christmas problem#
Waitlists are not first-come, first-served in every service. Some prioritise siblings, local families or children with additional needs. Apply to several services, confirm your place in writing, and ask what happens if you decline an offer.
Ask about the weeks between Christmas and New Year. Some services close or charge reduced fees; others charge full fees. Ask about public holidays, professional development days and emergency closures too.
If you are returning to work, work backwards from your start date. A place that begins in February may require you to accept it in January, even if you are not using it yet.
Common mistakes#
- Assuming the 72 hours guarantee means a place. It does not.
- Using an old income estimate. Update it in myGov when your pay changes.
- Forgetting to confirm income. This is how overpayments happen.
- Not checking the gap. The subsidy percentage is only half the story.
- Missing the immunisation requirement. It can affect your payments.
- Assuming all care is approved. Check before you enrol.
- Not asking about absence and holiday fees. These can be a nasty surprise.
When to get help#
Contact Services Australia if your claim is delayed, your percentage looks wrong, or you have an overpayment. Ask the childcare service for a written fee estimate. If you are struggling to afford care, ask about Additional Child Care Subsidy, payment plans and local support services.
The current rules are more generous for many families, but they are still complex. Check your own assessment rather than relying on a calculator from 2024.
Once you know what you can afford, our guide to choosing child care covers quality ratings, tours and the questions to ask before you enrol.
The bottom line#
From 2026, eligible families get at least 72 hours of subsidised care per fortnight, with up to 100 hours for higher participation. The percentage is still income-tested, and the gap fee is what you actually pay. Apply early, confirm your income, and ask every service for the real numbers in writing.
Frequently asked
Do I have to be working to get Child Care Subsidy in 2026?
No. Since 5 January 2026, all CCS-eligible families can get at least 72 hours of subsidised care per fortnight, regardless of activity. If you have more than 48 hours of recognised participation per fortnight, you may get up to 100 hours. The CCS percentage is still based on family income.
Does the 3 Day Guarantee guarantee my child a place?
No. It guarantees a minimum number of subsidised hours for eligible families, but you still need to secure a place with a childcare service. Services set their own fees and availability, and you will usually pay a gap fee.
Is the subsidy paid to me or the childcare service?
Usually the subsidy is paid directly to the approved service and deducted from your fee, so you pay the gap. Some families receive it differently. Services Australia withholds 5% of the subsidy each fortnight to reduce the chance of an overpayment, which is reconciled after you confirm your income.
What happens if my income changes?
Your CCS is based on your family income estimate. If your income is higher than estimated, you may have an overpayment. If it is lower, you may get a top-up. Update your estimate in myGov when your circumstances change, and confirm your actual income after the end of the financial year.
References
Sources and further reading
We use primary Australian guidance first. These links open in a new tab.
- 3 Day GuaranteeAustralian Government Department of Education
- Your income can affect Child Care SubsidyServices Australia
- Hours of subsidised child careServices Australia
- How much Child Care Subsidy you can getServices Australia
- Find a service and quality ratingsACECQA
How this guide was made
Drafted with AI assistance and edited against the public sources above. This is general information for Australian families, not personal medical, legal or financial advice. It has not been medically reviewed.
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