Child Care Subsidy (CCS) 2026-27

CCS 2026-27 at a glance

The subsidy for each hour of care is your CCS percentage multiplied by the lower of your hourly fee and the hourly rate cap. A service that charges by the day is converted to an hourly fee by dividing the daily fee by the hours in the session, and the subsidy is worked out on the session hours you are charged for, which can be longer than the hours your child attends. The part of the fee the subsidy does not cover is the gap fee, which you pay to the service.

How much CCS you get: the income test

The standard CCS rate is set by your combined family income for the financial year, which is your and your partner's adjusted taxable income. Services Australia uses your estimate during the year and checks it against your actual income after tax time. The rate is 90% up to $88,520 and drops 1 percentage point for each $5,000 above it, so it reaches 0% at $538,520. You can still claim at a higher income: if your actual income ends up below $538,520, you are paid what you were entitled to at balancing.

The higher rate for second and younger children

A family with more than one child aged 5 or under in care, and combined income below $370,727, gets a higher rate for the younger children. The eldest of those children is the standard rate child and keeps the standard rate. Each younger child gets 95% up to $146,437, falling 1 point per $3,000 to 80% at $191,437, staying at 80% to $270,727, then falling 1 point per $3,000 to 50% from $360,727. From $370,727, every child gets the standard rate.

• Services Australia applies the higher rate automatically. You do not apply for it.
• Siblings do not need to attend the same service.
• For twins, Services Australia picks one child as the standard rate child.
• In home care is paid at the standard rate only, because it is subsidised per family.
• A child who qualifies for both the higher rate and the Additional Child Care Subsidy gets the Additional Child Care Subsidy rate.

Hourly rate caps by type of care

The hourly rate cap is the highest hourly fee the subsidy is worked out on. The government reviews it each year and sets it by care type and the child's age. A child is school age once they are at school, including home schooling, or aged 6 or older.

The cap does not limit what a service may charge. The Australian Government does not set childcare fees, and the Department of Education describes the caps as a guide to what a high fee might be. Every dollar of the hourly fee above the cap is paid in full by the family, whatever its income, so a family on 90% gets less than 90% of a fee that sits above the cap.

At the Australian Capital Territory's average long day care fee of $16.50, $1.31 of every hour sits above the cap, so the 90% rate covers only 83% of the fee. Fees vary widely between services in the same suburb; compare them in the childcare directory or see average childcare fees by state.

Subsidised hours: the 3 Day Guarantee

The 3 Day Guarantee replaced the CCS activity test on 5 January 2026. Every child eligible for CCS now gets at least 72 hours of subsidised care a fortnight, the equivalent of 3 days a week, whether or not the parents work, study or volunteer. Families already getting CCS moved to the new hours automatically. A family that has never claimed must claim CCS first.

• Recognised activity includes paid work (including self-employment), paid or unpaid leave such as parental leave, study, training, actively looking for work, unpaid work in a family business, and reasonable travel time between the service and work or study. When volunteering or looking for work is your only activity, only the first 16 hours count.
• Couples are assessed on the lower of the two parents' activity hours. A single parent is assessed on their own hours.
• Exemptions include being temporarily outside Australia for up to 6 weeks, a disability or medical condition that stops you doing recognised activity, getting Carer Payment, grandparents with 65% or more care of the child, and exceptional circumstances such as family and domestic violence or serious illness.
• First Nations children: telling Services Australia that a child is Aboriginal or Torres Strait Islander is voluntary. Families who do not tell them may get 72 hours.
• Hours are per child and are counted on the session hours you are charged for.
• It is not a guaranteed place. You still need a place at a service; see how to get a childcare place.

Hours booked beyond the entitlement are charged at the full fee. A child booked for 4 ten-hour days a week uses 80 hours a fortnight; on the 72-hour entitlement, 8 of those hours get no subsidy, which costs about $116.80 a fortnight at the national average long day care fee of $14.60 an hour.

Who is eligible for the Child Care Subsidy

You, or your partner, must meet all of these:

• Care: you care for the child at least 2 nights a fortnight, or have at least 14% care.
• Fees: you are the person responsible for paying the fees. Every person liable for fees claims separately, so separated parents who share care and each pay fees each lodge their own claim.
• Approved care: the service is approved for CCS. The four approved types are centre based day care (long day care and occasional care), family day care, outside school hours care (before school, after school and vacation care) and in home care.
• Residence: on the day you claim, you or your partner live in Australia and are an Australian citizen or hold a permanent visa, a Special Category visa or certain temporary visas (partner provisional or temporary protection). Some other groups qualify; see the residence rules.

The child must also:

• be 13 or younger and not at secondary school, unless an exemption applies (a secondary school child who needs supervision can qualify at 13 or under, or at 14 to 18 with a disability, with evidence);
• meet the immunisation requirements;
• attend care at least once in the first 26 weeks after CCS starts. A child who does not attend for 26 weeks in a row stops being eligible, and you need a new claim.

How to claim the Child Care Subsidy

1. Get a place and sign the arrangement. The service gives you a Complying Written Arrangement (CWA) setting out your sessions and fees. The person who claims CCS must be the person on the CWA.
2. Link Centrelink to myGov. You need a Centrelink Customer Reference Number (CRN), or prove your identity with a strong myID to get one.
3. Make the claim. In your Centrelink online account, select Make a claim, then Families, then Apply for Family Assistance Payments, and follow the prompts. The claim includes your family income estimate for the year. You can also claim by phone on 136 150.
4. Confirm the enrolment. The service submits your child's enrolment to Services Australia, and you confirm it in your Centrelink online account. Check that the sessions and fees match your CWA before you confirm.
5. CCS starts. Services Australia pays the subsidy to the service only after your claim is approved and the enrolment is confirmed. The service takes it off your fee and you pay the gap electronically.

A claim can be backdated up to 28 days, to the first Monday of a CCS fortnight. A CCS fortnight is two weeks starting every second Monday; the first one in 2026-27 started on Monday 6 July 2026. To add another child, use Add child to Child Care Subsidy in the Child Care Subsidy summary of your online account.

Withholding, balancing and your income estimate

Services Australia withholds 5% of your subsidy each fortnight to reduce the chance of an overpayment. You can change that percentage online up to 2 times a financial year, or more often by phoning the families line. After 30 June, Services Australia balances your CCS from mid-August, comparing your estimate with your actual adjusted taxable income.

• To balance, both partners confirm their income by lodging a tax return or by telling Services Australia they do not need to lodge. Telling the ATO alone is not enough.
• Deadline: you usually have one year from the end of the financial year. For 2025-26 the date is 30 June 2027; miss it and your CCS drops to 0% from 5 July 2027 until you confirm. After two years, CCS for that year is cancelled and you may have to repay it all. An ATO extension does not change these dates.
• Estimate too low: you were paid at too high a rate and get a debt. The withheld amount reduces it first; the rest can be taken from a top up, your tax refund, or 20% of your ongoing CCS.
• Estimate too high: you were paid too little, and the shortfall plus the withheld amount is paid to you as a top up.

The 5% buffer absorbs a small underestimate: at $135,000 the family still gets a top up. It does not cover a large one, so update your estimate in your online account as soon as you expect a pay rise, a bonus or a return to work.

Additional Child Care Subsidy

The Additional Child Care Subsidy (ACCS) is paid on top of CCS to families in difficult circumstances, and the Department of Education says it usually covers all of a child's fees. You must be eligible for CCS first. ACCS has no annual cap, no withholding and is not balanced at the end of the year.

Absences: when CCS is paid and your child is away

CCS is paid for up to 42 absence days per child each financial year, for any reason and without evidence, on days your child would normally attend and you are charged a fee. Public holidays count. Tell the service about every absence so it records it correctly.

• After the 42 days, extra absences are allowed for reasons including illness of the child or carer, preschool attendance, a pupil-free day, a court order or parenting plan, and declared emergencies. The service may ask for documents.
• An absent before school session and an absent after school session on the same day count as one absence day.
• CCS is generally not paid for days before your child first attends or after the last day they attend, except for up to 6 days with an approved reason. You pay full fees to hold a place before the start date.
• An enrolment ends after 14 weeks in a row without attendance. CCS stops after 6 weeks overseas, until you return.
• Track your absence count in myGov under My family, Child Care, Absences.

CCS for each type of care

• Long day care: capped at $15.19 an hour below school age. A kindergarten or preschool program run inside an approved long day care centre is subsidised like any other session.
• Kindergarten and preschool: sessional kindergartens and school preschools are funded through state and territory programs, such as Free Kinder in Victoria and Free Kindy in Queensland. Ask the service whether it is also approved for CCS; the childcare fees guide lists each state's program.
• Family day care: one cap of $14.08 an hour for every age, so school-age children in family day care have a higher cap than in outside school hours care.
• Before and after school care and vacation care: capped at $13.30 an hour for school-age children. Short sessions use few of the 72 fortnightly hours; a 10-hour day of vacation care uses 10 of them.
• In home care: $41.31 an hour per family, only for families who cannot use other care, with extra eligibility rules. Compare it with the other options in types of childcare.

Worked examples: three families

These examples use each state's average long day care fee for the June quarter 2026, ten-hour days and the 2026-27 rates, before the 5% withholding. Use the CCS calculator for your own fee and income.

• Family A earns $85,000 in New South Wales, below the $88,520 threshold, so the rate is 90%. The average fee of $14.85 an hour is under the cap. They pay $14.85 a day, $44.55 a week and $2,227 a year; 72 hours a fortnight covers 3 days.
• Family B earns $160,000 in Victoria with two children under 6. The older child gets the standard 76% and the younger child the higher 91%. Together they pay $48.35 a day for both children, $145.04 a week and $7,252 a year; 72 hours a fortnight per child covers 3 days.
• Family C earns $260,000 in the Australian Capital Territory, so the rate is 56%. The average fee of $16.50 an hour is above the $15.19 cap, so $13.10 of each day is unsubsidised. They pay $79.94 a day, $319.74 a week and $15,987 a year; both parents work more than 48 hours a fortnight, so 100 hours covers 4 days.

Frequently asked questions

How much is the Child Care Subsidy in 2026-27?

From 6 July 2026, the Child Care Subsidy is 90% of your hourly fee, up to the hourly rate cap, when combined family income is $88,520 or less. It falls 1 percentage point for every $5,000 of income above that and is 0% at $538,520. Younger children aged 5 or under can get up to 95% when a family has two or more children of that age in care.

Who is eligible for the Child Care Subsidy?

You are eligible if you care for the child at least 2 nights a fortnight, pay the fees at an approved service and meet the residence rules. The child must be 13 or younger and not at secondary school (exemptions exist), and must meet the immunisation requirements.

What is the 3 Day Guarantee for childcare?

The 3 Day Guarantee started on 5 January 2026 and replaced the activity test. Every child eligible for the Child Care Subsidy gets at least 72 subsidised hours a fortnight, about 3 days a week, whatever the parents do. It does not guarantee a place at a service.

How do I apply for the Child Care Subsidy?

Apply through your Centrelink online account in myGov: Make a claim, then Families, then Apply for Family Assistance Payments. Give a family income estimate, then confirm the enrolment your service submits. The subsidy starts only when the claim is approved and the enrolment is confirmed.

Why does Services Australia withhold 5% of my CCS?

Services Australia holds back 5% of your subsidy each fortnight as a buffer against an overpayment. After you confirm your income for the year, the withheld amount is paid to you or used to reduce any debt. You can change the percentage online up to 2 times a financial year.

Do I get CCS when my child is sick or on holiday?

Yes, for up to 42 absence days per child each financial year, for any reason and without evidence, on days your child would normally attend and you are charged. Extra absences are allowed for reasons such as illness with evidence, after the 42 days are used.

What happens if my family income is higher than my estimate?

Your subsidy rate was set too high, so you are overpaid and get a debt when the year is balanced. The 5% withheld during the year is used to reduce it first. Updating your estimate as soon as your income changes keeps the debt small or avoids it.

This guide is general information, not advice about your entitlement. Services Australia decides your CCS; call the Centrelink families line on 136 150, Monday to Friday 8 am to 8 pm.

Related guides

Sources: Services Australia, Child Care Subsidy pages on eligibility, income and withholding, the higher rate, hourly rate caps, subsidised hours and exemptions, claiming, enrolment, balancing, time limits and balancing outcomes, absences and Additional Child Care Subsidy, 2026-27 rules, read October 2026. Department of Education, Child Care Subsidy, 3 Day Guarantee and Additional Child Care Subsidy provider guidance, 2026-27. Fees: Department of Education, Child Care Subsidy data report, June quarter 2026. Worked figures are kid.com.au calculations from these values.