Child Care Subsidy Calculator 2026: How Much Can You Get?
Updated April 2026 · General information only
TL;DR
The Child Care Subsidy (CCS) can cover up to 90% of your child care fees, depending on your family income and activity level. It is income-tested (families earning above $535,279 receive no subsidy) and activity-tested (all families receive a minimum 72 hours per fortnight of subsidised care under the 3 Day Guarantee, with higher activity levels unlocking up to 100 hours). CCS is paid directly to your approved child care provider, reducing the amount you pay out of pocket.
What Is the Child Care Subsidy?
The Child Care Subsidy (CCS) is the Australian Government's main payment to help families with the cost of child care. It replaced the old Child Care Benefit (CCB) and Child Care Rebate (CCR) on 2 July 2018, combining both into a single, simpler payment administered through Services Australia (Centrelink).
CCS is paid directly to your child care provider on your behalf. Your provider then passes the reduced fee on to you — so you only pay the gap between the full fee and the subsidy amount. The subsidy percentage you receive depends on your combined family income, how many hours of recognised activity you and your partner do each fortnight, and the type of approved care your child attends.
Almost all Australian families using approved child care will be eligible for some level of CCS. Even families on higher incomes may receive a partial subsidy. Understanding how the income test and activity test work together is key to estimating what you could receive.
Eligibility
To receive the Child Care Subsidy, you need to meet all of the following requirements:
Source: Services Australia (servicesaustralia.gov.au), as of April 2026. Eligibility criteria are subject to change.
How Much Can You Get?
CCS Percentage by Family Income
The percentage of child care fees covered by CCS depends on your combined family income. The subsidy percentage decreases as your income increases.
| Combined Family Income (Annual) | CCS Percentage |
|---|---|
| ≤$85,279 | 90% |
| $85,280 – $535,278 | Drops by 1% for every $5,000 above $85,279 (e.g., $135,279 = 80%, $185,279 = 70%, $235,279 = 60%, $285,279 = 50%, $335,279 = 40%, $385,279 = 30%, $435,279 = 20%, $485,279 = 10%) |
| ≥$535,279 | 0% |
Note: These thresholds are indexed annually. Figures shown are from 7 July 2025 and are subject to change. Formula: CCS% = 90 − floor((income − 85,279) / 5,000). Source: Services Australia.
Multiple children (Higher CCS): If you have 2 or more children aged 5 or under in approved care, you may be eligible for a higher CCS percentage of up to 95% for your younger children, provided your combined family income is $367,563 or less. Check your entitlement through your Centrelink account.
Hourly Rate Cap by Care Type
CCS is calculated as a percentage of the actual fee charged, up to an hourly rate cap set by the Government. If your provider charges more than the cap, you pay the difference plus the gap amount.
| Type of Care | Hourly Rate Cap (from 7 July 2025) |
|---|---|
| Centre-based day care (long day care) | $14.63/hr |
| Family day care | $12.81/hr |
| Outside school hours care (OSHC) | $12.81/hr |
| In-home care | $37.05/hr (shared across all children in the household) |
Source: Australian Government Department of Education, as of April 2026. Hourly rate caps are indexed annually.
Example Calculation
A family earning $100,000 per year using centre-based day care at $14.00/hr:
• Estimated CCS percentage: approximately 88% (90 − floor((100,000 − 85,279) / 5,000) = 88%)
• Hourly cap: $14.63 (fee is under cap, so full fee is subsidised)
• CCS per hour: $14.00 × 88% = $12.32
• Out-of-pocket cost per hour: $14.00 – $12.32 = $1.68
This is an estimate only. Your actual subsidy may differ. Use the for a personalised estimate.
Activity Test: How Many Hours of Subsidised Care?
The activity test determines the maximum number of hours of subsidised care your child can access per fortnight. "Recognised activity" includes paid work, study, training, volunteering, looking for work, or being self-employed.
If you have a partner, the person with the lower activity hours determines the family's maximum subsidised hours.
From 5 January 2026, the 3 Day Guarantee ensures all families receive a minimum of 72 hours of subsidised care per fortnight, regardless of activity level. Families with higher activity levels can access up to 100 hours.
| Recognised Activity Hours (Per Fortnight) | Maximum Hours of Subsidised Care (Per Fortnight) |
|---|---|
| 0 – 47 hours | 72 hours (3 Day Guarantee minimum) |
| 48+ hours | 100 hours |
Source: Services Australia, as of April 2026. The 3 Day Guarantee took effect 5 January 2026, replacing the previous tiered activity test for lower activity levels. Thresholds are subject to legislative change.
What Counts as Recognised Activity?
• Paid employment (including self-employment)
• Study or training (at an educational institution)
• Unpaid work in a family business
• Looking for work (registered with an employment service provider)
• Volunteering (with an approved not-for-profit organisation)
• Parental leave (on leave from employment)
If you or your partner are on an income support payment and looking for work, you generally meet the activity test requirement.
Exemptions: Some families are exempt from the activity test — for example, families experiencing temporary financial hardship, grandparent carers, or families transitioning to work from income support. Check with for details.
How to Apply for the Child Care Subsidy
Applying for CCS involves a few straightforward steps through your myGov account:
Step 1: Create or Link Your myGov Account
If you do not already have a myGov account, create one at . Link your Centrelink online account to myGov if you have not done so already.
Step 2: Complete Your CCS Claim
Log in to myGov and navigate to your Centrelink account. Select "Make a claim" and choose Child Care Subsidy. You will need:
• Your Tax File Number (TFN) and your partner's TFN
• Your combined family income estimate for the current financial year
• Details of your (and your partner's) recognised activities
• Your child's details, including their immunisation status
Step 3: Confirm Your Child's Enrolment
Once your claim is assessed, your child care provider will submit an enrolment notice through the Child Care Subsidy System (CCSS). You will need to confirm this enrolment in your Centrelink online account within 28 days.
Step 4: Receive Your Subsidy
After your enrolment is confirmed, CCS is paid directly to your child care provider. Your fortnightly statement from the provider will show the subsidy applied and your out-of-pocket gap fee.
Processing time: CCS claims are typically assessed within 1–2 weeks, but may take longer during peak periods. You can track your claim status through myGov.
Tips for Managing Your Child Care Subsidy
1. Keep Your Activity Records Up to Date
Your subsidised hours are based on your reported activity level. If your work or study hours change, update your details in Centrelink promptly. If your activity hours drop and you do not update, you may need to repay excess subsidy at the end of the financial year.
2. Consider Your Withholding Rate
By default, the Government withholds 5% of your CCS to reduce the risk of an overpayment debt at end-of-year reconciliation. If you are confident your income estimate is accurate, you may choose to reduce the withholding to 0% — meaning you receive more subsidy upfront. However, if your actual income is higher than estimated, you could face a repayment. A withholding rate of 5%–10% is a common approach to balance cash flow and avoid surprises.
3. Check If You Qualify for Additional CCS (ACCS)
Families on very low incomes, or those experiencing temporary financial hardship, family or domestic violence, or caring for a child at risk of serious abuse or neglect, may be eligible for Additional Child Care Subsidy (ACCS). ACCS can cover up to 100% of fees (up to the hourly rate cap) and is available on top of CCS. Visit or speak with your provider for more information.
Related Government Benefits
If you are receiving the Child Care Subsidy, you may also be eligible for other family payments. These can be claimed through your Centrelink online account.
• : A per-child payment to help with the cost of raising children. Income-tested with a base rate available to most families.
• : An additional payment for single-parent families or families where one parent earns a lower income.
• : An income support payment for the primary carer of a young child. Available as Parenting Payment Single (PPS) or Parenting Payment Partnered (PPP), with different income tests and rates.
Explore government benefits you may be eligible for at .
Frequently Asked Questions
How much does the Child Care Subsidy cover in 2026?
The Child Care Subsidy covers between 0% and 90% of your child care fees (up to 95% for families with multiple young children), depending on your combined family income and activity level. Families earning $85,279 or less per year may be eligible for the maximum 90% subsidy. The subsidy is applied up to an hourly rate cap set by the Government, which varies by care type.
How do I apply for the Child Care Subsidy?
You apply through your Centrelink online account, which is linked to your myGov account. Log in, select "Make a claim", and choose Child Care Subsidy. You will need your TFN, income estimate, activity details, and your child's information. Once assessed, confirm your child's enrolment with your provider through Centrelink.
What happens if my income changes during the year?
CCS is based on your estimated family income for the financial year. If your actual income is higher or lower than your estimate, your subsidy will be reconciled after you lodge your tax return. If you earned more than estimated, you may need to repay some subsidy. If you earned less, you may receive a top-up. Updating your income estimate promptly through myGov can help reduce surprises.
Can I get the Child Care Subsidy for a nanny or au pair?
CCS is only available for care provided by an approved child care service. Most nannies and au pairs are not approved providers. However, if your nanny works through a Government-approved In Home Care (IHC) service, you may be eligible for CCS. Check with your provider and Services Australia for eligibility.
Explore government benefits you may be eligible for at .
General information only, not personal financial advice. Child Care Subsidy rates, thresholds, and hourly caps are set by the Australian Government and are subject to change. Income thresholds and hourly rate caps effective from 7 July 2025; 3 Day Guarantee effective from 5 January 2026. Information sourced from Services Australia (servicesaustralia.gov.au) and the Australian Government Department of Education, as of April 2026.
General information only, not personal financial advice. Internest Australia Pty Ltd (ABN 36 637 557 067).