How the Child Care Subsidy (CCS) works in 2026-27
The Child Care Subsidy is the main way the Australian Government helps families pay for early-childhood education and care. It's paid directly to your approved childcare provider, who deducts it from your weekly fees - so what you see on your invoice is the "gap fee" you still owe out of pocket.
How much subsidy you get depends on three things working together: your family income, your activity level (how much paid work, study, or recognised activity you and your partner do each fortnight), and the type of childcare you use. Get the maths wrong on any of these and your subsidy can be hundreds of dollars per week different.
The income test (2026-27)
From 6 July 2026, the standard CCS rate starts at 90% for families earning up to $88,520, then reduces by 1 percentage point for every $5,000 of income until it reaches 0% at $538,520. A higher rate may apply to additional children aged 5 or under; this calculator does not apply it because it does not collect each child's age.
| Family income | CCS rate |
|---|---|
| $0 - $88,520 | 90% |
| $88,521 - $538,519 | Reduces by 1% per $5,000 |
| $538,520+ | 0% (no standard subsidy) |
Source: Services Australia - CCS income test.
The activity test
The activity test sets the maximum subsidised hours per fortnight based on how much paid work, study, training, volunteering, or job searching you and your partner do. The hours of the lower-activity parent set the cap.
| Recognised activity (per fortnight) | Subsidised hours (per fortnight) |
|---|---|
| 0 - 48 hours | 72 hours |
| More than 48 hours | 100 hours |
From 6 July 2026, eligible families receive at least 72 subsidised hours per fortnight. Aboriginal and Torres Strait Islander children can receive 100 subsidised hours regardless of activity level; families should confirm this entitlement with Services Australia.
The hourly cap
Even with a 90% subsidy, the government only subsidises fees up to an hourly cap. From 6 July 2026 the caps are $15.19 for centre-based day care for a child below school age, $13.30 for a school-age child, $14.08 for family day care, and $41.31 per family for in-home care. This calculator uses $15.19 for centre-based and outside-school-hours care because it does not collect school-age status.
Frequently asked questions
Can I get CCS on a temporary visa?
Generally, you need to be an Australian citizen, permanent resident, NZ Special Category Visa holder, or hold certain refugee/humanitarian visas to receive CCS. Most temporary visas (student, 482, 485, 491) don't qualify. The main exception is some partner provisional visas (820, 309) where the applicant is married to an Australian citizen or PR.
What counts as "recognised activity"?
Paid work (including self-employment), authorised leave (paid or unpaid), volunteering, looking for work, studying or training, work-related travel, and setting up a business. Activities are counted equally - whether you're working full-time or studying, an hour is an hour for the activity test.
I'm on parental leave - am I covered?
Yes. Paid parental leave from your employer or the government, plus any authorised unpaid maternity/paternity leave, counts as recognised activity at the rate of your pre-leave work hours. This means new parents don't lose their childcare subsidy while taking maternity or paternity leave.
What if my income drops mid-year?
Update your income estimate in MyGov as soon as your circumstances change. CCS is reconciled against your actual income at tax time the following year - if your estimate is too low, you may get a debt; too high, and you'll get a top-up. Most families slightly over-estimate to avoid an end-of-year surprise.
What's the Additional Child Care Subsidy (ACCS)?
ACCS gives extra support to families who need it for non-financial reasons: grandparents who are primary carers, families experiencing temporary financial hardship, families transitioning to work, and children at risk. Rates are higher than standard CCS (up to 100% of the hourly cap) and require a separate application. Talk to your childcare provider or call Services Australia on 136 150.
How is CCS paid?
By default, Services Australia withholds 5% of your estimated subsidy and pays the rest directly to your provider, who reduces your weekly bill. The 5% held back is reconciled at tax time. You can ask Services Australia to pay 0% or 10% withheld depending on whether you'd rather get more during the year or a refund at tax time.
What this calculator doesn't include
- Additional Child Care Subsidy (ACCS) for grandparent carers, transition-to-work, and at-risk children
- The Inclusion Support Program for children with disability
- State-based preschool subsidies - NSW Start Strong, Victoria's free kinder, etc.
- Provider-specific fees beyond the hourly cap - late pickup, holiday fees, enrolment fees
- FTB Part A/B interactions - these don't affect CCS but they do affect overall family income
- Casual or short-notice care - calculations assume a regular weekly pattern
For your actual quote, your childcare provider will give you the exact gap fee once you've linked your CRN through MyGov. Read more at Services Australia.