The Finance Algorithm

Child Care Subsidy Calculator

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

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$120k

Total taxable income for both parents/guardians

3

Age of the child attending childcare (0-13 years)

40

Total hours of approved childcare per week

$
$12

Your childcare centre's hourly fee (check your statement)

72

Work, study, volunteering hours that determine your subsidy percentage

1

Age of younger sibling (for higher subsidy rates)

The button asks our AI to explain these figures in words.

Child Care Subsidy

CCS rate

84%

100 hrs/fn (48+ activity hrs)

Weekly out-of-pocket

$78

after CCS applied

Annual CCS

$20,893

government contribution

Annual net cost

$4,067

your share

The full fee, the subsidy and your share

The CCS taper means higher-income families get less. Activity hours can limit how many subsidised hours you receive.

$480Full fee$402CCS subsidy$78Out-of-pocket

CCS vs out-of-pocket

Over a year, this is who pays what. Submit your tax return on time: CCS reconciles annually based on actual income.

$24,960annual fees
Govt CCS83.7%
Your out-of-pocket16.3%
Standard CCS eligibility
Your CCS of 84% reduces childcare fees by $402/week. Out-of-pocket: $78/week.

How it works

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.

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

Worked examples

Working Parents with One Child

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

Combined family income (per year)
$110,000
Child's age
3
Hours of care per week
40
Hourly fee rate
$12
Recognised activity hours (per fortnight)
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.

Combined family income (per year)
$150,000
Child's age
4
Hours of care per week
30
Hourly fee rate
$13
Recognised activity hours (per fortnight)
72
Sibling also in childcare?
Yes
Sibling's age (if applicable)
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.

Questions people ask

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.

The terms, in plain English

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.

Official sources

Family Tax Benefit (FTB) Estimator

Estimate your Family Tax Benefit payments

Paid Parental Leave Estimator

Calculate government parental leave payments

Govt Support Finder

Find all government schemes and benefits you may qualify for