Child Care Subsidy Guide & Calculator: Discover Your Childcare Savings

The Child Care Subsidy (CCS) is financial assistance from the Australian Government that helps eligible families with the cost of approved childcare.

CCS is paid directly to your childcare service and reduces the amount you pay in fees. The amount you receive depends on your individual circumstances, including your family income, the type of childcare you use, and the number of eligible children in your family.

CCS is calculated hourly, rather than simply taking a percentage off your total childcare bill.

Your CCS percentage is applied to the lower of your service’s hourly fee or the Government’s applicable CCS hourly rate cap.

The resulting subsidy is deducted from your childcare fees, leaving you with the childcare gap fee — the amount you pay yourself.

Your CCS percentage is primarily based on your estimated annual family income.

For 2026–27, families with an estimated income of up to $88,520 may be eligible for a CCS rate of up to 90%. The percentage gradually decreases as family income increases and reaches 0% at $538,520 or more.

Your actual CCS entitlement will depend on your individual circumstances.

The CCS hourly rate cap is the maximum hourly fee the Australian Government will recognise when calculating your Child Care Subsidy.

For 2026–27, the Centre Based Day Care hourly rate cap is $15.19 per hour for children below school age.

If your centre’s hourly fee is higher than the applicable cap, CCS is calculated using the capped amount rather than the full hourly fee. The rate cap is different from your centre’s actual childcare fee.

It’s natural to assume fewer hours of childcare should mean a proportionally lower cost. However, CCS is calculated hourly and is subject to an hourly rate cap.

For example, if a daily fee is $195, a 12-hour session works out to $16.25 per hour, while a 4-hour session works out to $48.75 per hour. The 2026–27 CCS hourly rate cap remains $15.19 per hour in both cases.

This means a shorter session can result in a higher effective hourly fee, so it does not necessarily mean a proportionally lower gap fee.

Many early learning centres operate using a daily fee based on their standard operating hours, rather than charging families by the hour. When a daily fee is used, it is converted into an hourly amount for the purpose of calculating CCS.

A 12-hour session spreads the daily fee across the full session, which can make the interaction between the daily fee and the CCS hourly rate cap more favourable than a much shorter session.

This doesn’t mean families pay less simply because their child attends longer — it means the CCS calculation works differently because of the hourly rate cap.

The 3 Day Guarantee is a change to the Child Care Subsidy that came into effect on 5 January 2026.

All families who are eligible for CCS can now access at least 72 hours of subsidised childcare per fortnight, equivalent to three days per week, regardless of their level of recognised participation.

Some families may be eligible for up to 100 hours of subsidised childcare per fortnight.

Under the 3 Day Guarantee, CCS-eligible families can receive at least 72 hours of subsidised childcare per fortnight for each child.

Families may be eligible for 100 hours per fortnight if, for example, they have more than 48 hours of recognised participation per fortnight, have a valid exemption, or meet certain other eligibility criteria. Aboriginal and Torres Strait Islander children can also be eligible for 100 hours.

Your subsidised hours are separate from your CCS percentage — one determines how many hours can be subsidised, the other determines how much of the eligible fee is subsidised.

Your childcare gap fee is the amount you pay after your Child Care Subsidy has been deducted from your childcare fees.

In simple terms: Childcare fee − CCS = your gap fee.

Your actual gap fee will depend on your childcare fee, CCS percentage, applicable hourly rate cap, and the number of subsidised hours available to you.

Every family’s CCS entitlement can be different. Two families whose children attend the same centre on the same days may have different gap fees because their circumstances can affect their CCS percentage, family income, number of children in care, number of subsidised hours, and eligibility for higher CCS rates.

This means another family’s childcare bill is not necessarily a useful guide to what your own family will pay.

Yes. Your estimated annual family income is one of the key factors used to calculate your CCS percentage.

For 2026–27, eligible families with income up to $88,520 may receive up to 90% CCS, with the percentage reducing as income increases.

It’s important to keep your income estimate up to date with Services Australia, as your CCS is balanced against your actual circumstances at the end of the financial year.

Potentially, yes.

Families with more than one child aged 5 or under in care may be eligible for a higher CCS rate for their second and younger children, depending on their family circumstances and income.

You apply for CCS through Services Australia. You will need to provide information about your family, income, and childcare arrangements.

Once your CCS eligibility has been established and your child is enrolled with an approved childcare service, your subsidy can be paid directly to the service as a reduction in your fees.

If you have never claimed CCS before, you need to make a claim to access the 3 Day Guarantee.

You can use the Australian Government’s childcare and CCS resources to get an estimate of your potential subsidy — or simply use the calculator above.

Your estimated childcare gap fee will depend on several factors, including your childcare fee, your CCS percentage, the CCS hourly rate cap, and your subsidised hours.

An online calculator can provide an estimate, but your actual CCS entitlement is determined by Services Australia based on your individual circumstances.

Usually, no. Most families will still have a childcare gap fee to pay after CCS has been applied.

The amount of CCS you receive depends on your individual circumstances and the applicable hourly rate cap. The Australian Government does not set childcare fees or require childcare services to charge by the hour.

At Grimshaw St Early Learning Centre, we can help explain how our fees, session structure and CCS work together, but Services Australia determines your individual CCS entitlement.