Child Care Subsidy Calculator

Estimate your Child Care Subsidy (CCS) for 2025-26. Enter your family income and childcare details to see your subsidy percentage, out-of-pocket costs, and how much the government covers — including the higher rate for families with multiple young children.

Combined adjusted taxable income (ATI) for you and your partner

All families get up to 72 subsidised hours per fortnight (3 Day Guarantee)

Children in care
Child 1

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How Child Care Subsidy Works

The Child Care Subsidy (CCS) is paid directly to your approved child care provider, reducing the fees you pay. The amount you receive depends on three factors: your combined family income, the type of care you use, and your activity level.

Services Australia uses your adjusted taxable income (ATI) to determine your CCS percentage. ATI includes taxable income, reportable fringe benefits, total net investment losses, and certain other amounts. The subsidy is calculated per hour of care and is capped at a maximum hourly rate set by the government for each care type.

CCS Income Test

The CCS percentage is based on your combined family ATI using a sliding scale:

  • Income up to $85,279: maximum 90% subsidy
  • Income $85,280 to $535,278: subsidy decreases by 1 percentage point for every $5,000 above $85,279
  • Income $535,279 or more: no subsidy (0%)

For example, a family earning $135,279 would have a CCS rate of 80% — that's 10 steps of $5,000 above the $85,279 threshold, reducing from 90% by 10 percentage points.

Higher CCS Rate for Multiple Children

Families with two or more children in care can receive a higher CCS rate for their second and subsequent children aged 5 or under. The higher rate has its own income test:

  • Income up to $143,273: 95% (maximum higher rate)
  • $143,274 to $188,273: tapers from 95% to 80% (1% per $3,000)
  • $188,274 to $267,563: flat 80%
  • $267,564 to $357,563: tapers from 80% to 50% (1% per $3,000)
  • $357,564 to $367,563: flat 50%
  • Above $367,563: falls back to the standard rate

The eldest CCS-eligible child always receives the standard rate. Only younger siblings aged 5 or under qualify for the higher rate.

Hourly Rate Caps (2025-26)

The government limits the hourly rate on which CCS is calculated. If your provider charges more than the cap, you pay the difference in full on top of your gap fee:

  • Centre Based Day Care: $14.63/hr (below school age), $12.81/hr (school age)
  • Family Day Care: $13.56/hr
  • Outside School Hours Care: $14.63/hr (below school age), $12.81/hr (school age)
  • In Home Care: $39.80/hr (per family)

Rate caps are indexed annually based on CPI. These rates apply from 7 July 2025.

3 Day Guarantee

From 5 January 2026, the CCS activity test was replaced by the 3 Day Guarantee. All CCS-eligible families now receive at least 72 subsidised hours per fortnight (equivalent to 3 days per week of care), regardless of their work or study activity.

Families can access up to 100 hours per fortnight if both parents (or the sole parent) do more than 48 hours of recognised participation — such as paid work, study, or volunteering — each fortnight.

Frequently asked questions

What is the Child Care Subsidy (CCS)?
The Child Care Subsidy is an Australian Government payment that helps families with the cost of approved child care. It is paid directly to your child care provider, reducing your out-of-pocket fees. The subsidy is income-tested — families earning less receive a higher percentage. Since January 2026, the activity test has been replaced by the 3 Day Guarantee, giving all eligible families at least 72 subsidised hours per fortnight.
How is my CCS percentage calculated?
Your CCS percentage is based on your combined family adjusted taxable income (ATI). For 2025-26, families earning up to $85,279 receive the maximum 90% subsidy. Above that, the rate decreases by 1 percentage point for every $5,000 of additional income. Families earning $535,279 or more receive no subsidy. If you have multiple children aged 5 or under, the second and younger children may receive a higher rate of up to 95%.
What is the higher CCS rate for multiple children?
If your family has two or more CCS-eligible children and your combined income is under $367,563, your second and subsequent children aged 5 or under receive a higher CCS rate — up to 95% compared to the standard maximum of 90%. The eldest child receives the standard rate. The higher rate has its own income test with different taper bands: 95% up to $143,273, tapering to 80% by $188,273, flat at 80% until $267,563, then tapering to 50% by $357,563.
What are the CCS hourly rate caps?
The government sets maximum hourly rates for subsidy purposes. For 2025-26: Centre Based Day Care is $14.63/hour (below school age) or $12.81/hour (school age), Family Day Care is $13.56/hour, Outside School Hours Care is $14.63/$12.81, and In Home Care is $39.80/hour per family. If your provider charges more than the cap, you pay the full difference above the cap plus your gap fee.
What is the 3 Day Guarantee?
From 5 January 2026, the CCS activity test was replaced by the 3 Day Guarantee. All CCS-eligible families now receive at least 72 hours of subsidised child care per fortnight (equivalent to 3 days per week), regardless of work or study activity. Families where both parents work or study more than 48 hours per fortnight can access up to 100 hours per fortnight.
Is there an annual cap on CCS?
No. The annual CCS cap was removed from 10 July 2023. There is no longer a maximum amount of CCS a family can receive per year. However, hours of subsidised care are still limited by your activity level: 72 hours per fortnight under the 3 Day Guarantee, or 100 hours per fortnight for families with higher activity levels.

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Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2025-26

This calculator uses 2025-26 Services Australia rates for the Child Care Subsidy, including the standard income test, higher rate for multiple children, hourly rate caps by care type, and the 3 Day Guarantee activity hours. It does not include Additional Child Care Subsidy (ACCS), withholding rate adjustments, Free Kindy or state-specific subsidies, or shared care arrangements. CCS entitlements are based on adjusted taxable income — consult Services Australia for a personalised assessment.

Last updated 19 April 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

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