What is the 3-Day Guarantee for childcare?

From 5 January 2026, all eligible families are guaranteed subsidised access to at least 3 days (72 hours per fortnight) of early childhood education and care, regardless of the activity test. Previously, families not meeting activity requirements received fewer subsidised hours.

What income do I need to get the maximum childcare subsidy?

To receive the maximum 90% Child Care Subsidy, your combined family adjusted taxable income must be $83,280 or less. For second and younger children, you can receive up to 95% if your family income is under $83,280. The subsidy reduces to 0% at family incomes above $535,279.

How much does childcare cost out-of-pocket in Australia?

Out-of-pocket costs depend on your subsidy percentage and the fee your centre charges. For example, a family earning $100,000 using centre-based care at $13/hr for 30 hours/week would pay roughly $55-65/week out-of-pocket after the subsidy. Higher income families pay more.

Child Care Subsidy Calculator

Q: How much is the Child Care Subsidy in 2026?

The Child Care Subsidy covers up to 90% of childcare fees for families earning $83,280 or less. The percentage decreases as family income rises. Second and younger children can receive up to 95% for families under $141,321. The subsidy is capped at hourly fee limits: $14.63/hr for centre-based care, $12.81/hr for OSHC.

Calculate your estimated Child Care Subsidy for 2026. See how much the government will pay towards your childcare and what you'll pay out-of-pocket.

Last verified: 5 January 2026

How much is the Child Care Subsidy in 2026?

The Child Care Subsidy pays up to 90% of fees for families earning $83,280 or less, tapering to 0% at $535,279. Second and younger children get up to 95%. Hourly rate caps: $14.63/hr centre-based, $12.81/hr OSHC. From 5 January 2026, the 3-Day Guarantee gives every eligible family at least 72 subsidised hours per fortnight, regardless of the activity test. Source: Services Australia.

Worked example. Family income $100,000, one child in centre-based care at $13/hr for 30 hrs/week. Subsidy rate ~84% → out-of-pocket roughly $55-65/week. At family income $200,000, subsidy drops to 50% → out-of-pocket ~$195/week on the same care pattern. Over $535,279, no CCS applies and you pay the full fee.

Frequently asked questions

What is the Child Care Subsidy income threshold?

CCS is paid at 90% for family incomes up to $83,280, tapering down to 50% at $188,169, flat 50% to $277,788, then tapering to 0% at $535,279. From 5 January 2026 the 3-Day Guarantee gives every eligible family at least 72 subsidised hours per fortnight. Source: Services Australia.

How much is the Child Care Subsidy per day?

For centre-based day care, CCS is calculated as a percentage of the lower of your hourly fee or the hourly rate cap ($14.63 for 2025-26). A 10-hour day at a $14/hour fee with 75% CCS saves about $105 in daily out-of-pocket cost.

Do I need to meet activity test hours to get CCS?

Yes. The activity test determines subsidised hours per fortnight: less than 8 hours of activity = 0 hours of CCS (unless family income is under $83,280, in which case 36 hours apply). 8-16 hours of activity = up to 36 hours of CCS per child per fortnight, scaling up to 100 hours for 48+ hours of activity.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.