Child Care · Calculator

Child Care Subsidy Calculator

Q: What are the Child Care Subsidy income thresholds for 2026–27?

The standard CCS rate is 90% for family adjusted taxable income up to $88,520 . Above that, it reduces continuously by 1 percentage point for every $5,000 and reaches 0% at $538,520. These rates apply from 6 July 2026.

Q: How does In Home Care affect the calculation?

In Home Care uses a $41.31 hourly cap per family , not per child, and IHC sessions do not receive the higher CCS percentage. A child aged 5 or under using IHC still counts when Services Australia determines the standard and higher-rate children for other approved care types. Enter one combined IHC family row in the calculator.

Q: Why does the calculator include 5% withholding?

Services Australia normally withholds 5% of CCS entitlement to reduce the risk of debt at balancing. This makes the amount paid to the provider during the year lower than the entitlement. Withheld CCS is not automatically lost; it is used at balancing and may be returned or offset against an overpayment.

Estimate ordinary CCS entitlement, what reaches your provider after withholding, and your likely cash gap using current 2026–27 rules.

Exact income formulaHigher CCS3 Day Guarantee

01 —INPUTS

Care for every child entered at least 14% of the time?

Services Australia describes this as at least 2 nights per fortnight or 14% care.

Meet the CCS residence rules?

You or your partner must meet the residence rules. Services Australia assesses visa, residence and overseas-absence exceptions.

Approved child care and you or your partner are liable for the fees?

The care must be from an approved service and the fee liability must be under a complying written arrangement.

Combined family adjusted taxable income /year

Use your and your partner's estimated ATI for the full 2026–27 financial year. Enter 0 if applicable.

CCS withholding

Services Australia normally withholds 5% until balancing. Use your varied percentage if different.

Children and care arrangements

Add every child using care, from oldest to youngest. Enter actual provider fees and booked hours; the calculator will apply the relevant cap and subsidised-hours limit.

Child 1

This child meets the CCS child rules?

Confirm immunisation requirements and that the child is 13 or under and not at secondary school, unless Services Australia has accepted an exception.

Age

Care type

Hourly fee

Your provider's actual hourly fee.

Hours /week

Booked care hours, not work hours.

Subsidised hours /fortnight

Choose 100 for this child if participation, First Nations status, an exemption or specified ACCS applies.

02 —RESULTS

Awaiting input

Complete the eligibility questions, family income and every child's actual care details — enter 0 where applicable

Edit inputs ↑

Income formula

The CCS percentage is continuous, not stepped

The published “1% per $5,000” description is a formula. Services Australia does not wait for a complete $5,000 band before reducing the rate. The result is rounded to 2 decimal places.

Combined family ATI	Standard CCS percentage
Up to $88,520	90%
More than $88,520 to below $538,520	90% − (income − $88,520) ÷ $5,000
$538,520 or more	0%

At $130,000 ATI: 90% − (($130,000 − $88,520) ÷ $5,000) = 81.70%.

Higher CCS

The sibling test only counts children aged 5 or under

The eldest CCS-eligible child aged 5 or under usually receives the standard rate. The second and younger eligible children aged 5 or under may receive the higher rate. A school-age sibling aged 6 or older does not trigger higher CCS for a lone younger child.

Up to $146,43795%

More than $146,437 to below $191,437Tapers from 95% to 80% at 1% per $3,000

$191,437 to below $270,72780%

$270,727 to below $360,727Tapers from 80% to 50% at 1% per $3,000

$360,727 to below $370,72750%

$370,727 or moreStandard CCS rate applies

In Home Care children count in the family ordering, but IHC sessions themselves never receive the higher percentage because the IHC cap is assessed per family.

Hourly caps

2026–27 CCS hourly rate caps

Your CCS percentage applies to the lower of the actual hourly fee and the cap. You pay any fee above the cap in full, plus the percentage gap below the cap.

Care type	Below school age	School age
Centre Based Day Care	$15.19	$13.30
Outside School Hours Care	$15.19	$13.30
Family Day Care	$14.08	$14.08
In Home Care — per family	$41.31	$41.31

Hours and payment

3 Day Guarantee hours and the provider payment

72 or 100 hours per fortnight

Every CCS-eligible family can access at least 72 hours per child. The 100-hour tier can apply through participation, First Nations status, an exemption, exceptional circumstances or specified ACCS. The calculator lets each child use the appropriate tier.

Default 5% withholding

The entitlement is calculated first. Services Australia then normally withholds 5% before paying the provider. That temporarily increases the cash gap, but the withheld amount is settled when CCS is balanced.

Worked examples

CCS cost examples using the same engine

One child, fee above the cap

$130,000 family ATI, one child below school age, centre care at $16/hour for 40 hours a week, 72-hour entitlement.

$215.58 /week cash gap

$446.76 CCS entitlement /week · $22.34 withheld

Two children aged 5 or under

$120,000 family ATI, two children in centre care at $15/hour for 30 hours a week each.

$135.92 /week cash gap

$804.30 CCS entitlement /week · $40.22 withheld

100-hour entitlement

$80,000 family ATI, one child in centre care for 50 hours a week with a 100-hour fortnightly entitlement.

$101.50 /week cash gap

$630.00 CCS entitlement /week · $31.50 withheld

FAQ

Who can get Child Care Subsidy?

Services Australia requires the claimant or partner to have at least 14% care, be liable for fees at an approved child care service and meet the residence rules. Each child must meet immunisation and age or secondary-school rules unless an accepted exception applies. The calculator requires these checks before showing an amount, but Services Australia makes the formal decision.

What are the Child Care Subsidy income thresholds for 2026–27?

The standard CCS rate is 90% for family adjusted taxable income up to $88,520. Above that, it reduces continuously by 1 percentage point for every $5,000 and reaches 0% at $538,520. These rates apply from 6 July 2026.

Is CCS calculated in whole 1% income bands?

No. The legislation applies a continuous formula and rounds the CCS percentage to 2 decimal places. For example, family income of $130,000 produces a standard rate of 81.70%, not a rounded whole-number rate. The hourly CCS amount is then rounded to the nearest cent.

Which children receive the higher Child Care Subsidy rate?

A family must have more than one CCS-eligible child aged 5 or under in care and income below $370,727. The eldest eligible child usually gets the standard rate; the second and younger children aged 5 or under may get the higher rate. A child aged 6 or older does not by itself make a younger sibling eligible for higher CCS.

Can a 5-year-old attending school receive higher CCS?

Potentially, yes. Age determines whether a child can be a higher-rate child, while school attendance determines the Centre Based Day Care or Outside School Hours Care hourly cap. The calculator therefore asks these separately.

How does In Home Care affect the calculation?

In Home Care uses a $41.31 hourly cap per family, not per child, and IHC sessions do not receive the higher CCS percentage. A child aged 5 or under using IHC still counts when Services Australia determines the standard and higher-rate children for other approved care types. Enter one combined IHC family row in the calculator.

What is the 3 Day Guarantee?

Since 5 January 2026, all CCS-eligible families can receive at least 72 subsidised hours per child per fortnight. A child can receive 100 hours where recognised participation exceeds 48 hours per fortnight, the child is Aboriginal or Torres Strait Islander, an exemption or exceptional circumstances applies, or specified ACCS applies.

Why does the calculator include 5% withholding?

Services Australia normally withholds 5% of CCS entitlement to reduce the risk of debt at balancing. This makes the amount paid to the provider during the year lower than the entitlement. Withheld CCS is not automatically lost; it is used at balancing and may be returned or offset against an overpayment.

Does this include state kindergarten subsidies or Additional Child Care Subsidy?

No. It models ordinary federal CCS only. It excludes Additional Child Care Subsidy, state Free Kindy or preschool funding, educator discounts, shared-care apportionment, provider discounts, absences and session-level eligibility rules.

Tax Accuracy & Sources

Reviewed: 18 July 2026 · Tax year: 2026–27 rates from 6 July 2026

This calculator screens the main claimant and child eligibility conditions, then estimates ordinary federal CCS entitlement and provider payment after withholding. It uses the exact current income formulas, hourly-rate rounding, hourly caps and 3 Day Guarantee tiers. Services Australia makes the formal eligibility decision; the calculator does not model ACCS, state kindergarten funding, shared care, provider discounts, absences or session ordering.