How is my Child Care Subsidy percentage calculated?

Your subsidy percentage is based on your family's combined income. For 2026: Under $80,000 = 90%, $80,000-$530,000 = sliding scale from 90% to 0%, Over $530,000 = 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 ($13.73 for centre-based care). You pay the full gap between the cap and your actual fee, plus your portion of the subsidised amount.

Child Care Subsidy Calculator

Calculator

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

Free to useNo data storedAI insightsUpdated: March 2026

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.

Enter Your Details

Real-World Examples

Working Parents with One Child

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

Inputs Used:

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

With 80 activity hours/fortnight, they qualify for 85% subsidy. Weekly out-of-pocket: ~$72 (before 3-Day Guarantee).

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 Used:

familyIncome:150,000childAge:4careHoursPerWeek:30hourlyRate:13activityHours:72siblingInCare:1siblingAge:2

First child gets 71% subsidy, second child gets higher rate (up to 95%). Combined weekly out-of-pocket: ~$110.

Frequently Asked Questions

Glossary

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

1Enter your combined family income (both parents/guardians)
2Input your child's age and weekly care hours
3Enter your childcare centre's hourly fee rate
4Add your recognised activity hours per fortnight (work, study, volunteering)
5Indicate if a younger sibling is also in care (qualifies for higher rates)
6Review your estimated subsidy and out-of-pocket costs

Key Information

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: $13.73 (centre-based), $12.31 (family day care), $11.88 (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 $80,000 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 Mistakes

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: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: March 2026