How is my Child Care Subsidy percentage calculated?

Your subsidy percentage is based on your family's combined income. For 2026-27: Under $88,520 = 90%, $88,520-$538,520 = sliding scale from 90% to 0%, Over $538,520 = 0%.

What is the 3-Day Guarantee?

From 5 January 2026, all CCS-eligible families receive a minimum of 72 hours (3 days) of subsidised care per fortnight for each child, regardless of how many activity hours they have. This ensures children can access early education even if parents aren't working.

Do I get more subsidy for multiple children?

Yes! Second and subsequent children under 5 years old receive a higher subsidy rate (up to 95%). This applies to the hours each child attends care.

What counts as recognised activity?

Paid work, self-employment, study, training courses, volunteering, actively looking for work, and paid parental leave all count. You can combine different activities to reach the required hours.

What if my childcare costs more than the hourly fee cap?

The government only calculates subsidy up to the hourly fee cap ($15.19 for centre-based care). You pay the full gap between the cap and your actual fee, plus your portion of the subsidised amount.

§ Tool · tier 1 · independent

Child Care Subsidy Calculator.

Estimate your Child Care Subsidy (CCS) entitlements and out-of-pocket costs for Australian families

CalculatorFree, no signupOn-deviceupd August 2026

Inputs

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Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

The Child Care Subsidy (CCS) helps Australian families with the cost of approved childcare. From January 2026, the 3-Day Guarantee ensures all eligible families receive at least 72 hours of subsidised care per fortnight regardless of activity test. This calculator estimates your subsidy percentage, weekly subsidy amount, and out-of-pocket costs based on your family's circumstances.

§ Worked examples

Real-world scenarios

Working Parents with One Child

Sarah and John earn $110,000 combined. Their 3-year-old attends 40 hours/week at $12/hour.

Inputs

familyIncome:110,000childAge:3careHoursPerWeek:40hourlyRate:12activityHours:80

With 80 activity hours/fortnight (above the 48-hour threshold), they qualify for the full 100 hours/fortnight of subsidised care at an 85.7% subsidy rate. Weekly out-of-pocket: ~$69.

Family with Two Children

The Chen family earns $150,000. They have a 4-year-old and 2-year-old both in care 30 hours/week.

Inputs

familyIncome:150,000childAge:4careHoursPerWeek:30hourlyRate:13activityHours:72siblingInCare:YessiblingAge:2

First child gets ~78% subsidy, second child (sibling under 6) gets the higher 95% rate. Combined weekly out-of-pocket (assuming similar hours/fees for both children): ~$106.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Child Care Subsidy (CCS)

Australian government payment that helps families with the cost of approved childcare, paid directly to providers.

Recognised Activity

Paid work, self-employment, study, training, volunteering, or actively looking for work that counts toward the activity test.

3-Day Guarantee

From January 2026, all eligible CCS families receive minimum 72 hours subsidised care per fortnight regardless of activity test.

Hourly Fee Cap

Maximum hourly rate the government uses to calculate subsidy. You pay full cost above this cap.

Higher CCS Rate

Increased subsidy percentage for second and subsequent children under 5 years old in childcare.

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How to use

01Enter your combined family income (both parents/guardians)
02Input your child's age and weekly care hours
03Enter your childcare centre's hourly fee rate
04Add your recognised activity hours per fortnight (work, study, volunteering)
05Indicate if a younger sibling is also in care (qualifies for higher rates)
06Review your estimated subsidy and out-of-pocket costs

Key info

Subsidy rates range from 0% to 90% based on family income
From January 2026, minimum 72 hours subsidised care per fortnight guaranteed
Second and subsequent children under 5 get higher subsidy rates
Hourly fee caps apply: $15.19 (centre-based), $14.08 (family day care), $13.30 (outside school hours)
Activity test determines hours of subsidised care you can access

Pro tips

Check if your employer offers salary packaging for childcare - it can provide additional tax savings
Families earning over $88,520 should review their income estimate regularly to avoid overpayment debts
Consider using the Child Care Subsidy balancing account to manage payments throughout the year
If your circumstances change, update your income estimate in myGov within 14 days

Avoid these

Not updating income estimates when circumstances change, leading to overpayment debts
Confusing the hourly fee charged with the hourly fee cap for subsidy calculations
Forgetting that approved childcare includes more than just long day care (family day care, outside school hours care also qualify)
Not claiming the higher subsidy rate for second and subsequent children under 5

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.

Last updated · August 2026