Child Care Subsidy in Australia — explained
The Child Care Subsidy (CCS) is the Australian Government's payment that covers up to 90% of approved childcare fees. What you actually pay depends on three things: your family income, the hours you use, and your centre's fee. This guide walks through each one — and then hands you a calculator that ties them together.
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The whole subsidy in 60 seconds
Think of your weekly cost as a simple equation. Your income sets your CCS percentage. Your activity sets how many hours per fortnight are subsidised. Your centre's fee determines how much each subsidised hour is worth. Multiply through, subtract a 5% withholding buffer, and you have your weekly gap fee.
What's actually changed for 2025–26
- 3 Day Guarantee from 5 January 2026. The old activity test is gone. Every CCS-eligible family now receives at least 72 subsidised hours per fortnight. Full explainer →
- Indexed hourly caps. Long Day Care: $14.63/hr, OSHC: $12.81/hr, Family Day Care: $13.56/hr, In Home Care: $39.80/hr per family. Effective 7 July 2025. All caps →
- Higher sibling rate unchanged. Families with more than one child aged 5 or under in care and combined income below $367,563 still get up to 95% on the second and younger children. How it works →
What this guide doesn't cover (yet)
We're focused on the standard CCS pathway. Edge cases that need their own pages — single parents, grandparent carers, ACCS (Additional CCS), parental leave, and state-level kindy / preschool overlays — are coming soon. In the meantime, Services Australia is the authoritative source for your specific entitlement.