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CCS Eligibility CCS News CCS Rates

CCS Family eligibility and entitlement from July 2025 (FY2025-2026)

The Australian Government Department of Education published the 2025–2026 (FY2026) CCS family eligibility and entitlement information including the CCS rates & CCS hourly rate caps. Families can use the CCS Calculator at www.childcaresubsidycalculator.com.au to find out what their future rates may be.

Who can get CCS?

Families must meet eligibility criteria to get CCS.

Parents must:

  • care for their child at least 2 nights per fortnight or have 14% share of care
  • be liable for child care fees at an approved child care service
  • meet residency requirements.

Their child must:

  • meet immunisation requirements
  • not be attending secondary school (unless an exemption applies)
  • be 13 or under (except in certain circumstances).

If a child doesn’t attend a session of care at least once in 26 consecutive weeks, they will stop being eligible for CCS. If a child starts to attend care again, a family can make a new claim for CCS.

How much CCS can a family get?

The amount of CCS a family can get depends on their circumstances.

Services Australia works out a family’s CCS percentage based on their family income estimate.

A family’s CCS subsidy rate is the percentage of the hourly rate the government will subsidise. It will apply to the hourly fee or the relevant hourly rate cap, whichever is lower.

The family income limit to get CCS for FY2026 is increasing to $535,279.

CCS rates from 7 July 2025

Family incomeSubsidy rate
Up to $85,27990%
More than $85,279 to below $535,279Between 90% and 0%The percentage decreases by 1% for every $5,000 of income a family earns
$535,279 or more0%

Number of children in care 

Families with more than one child aged 5 or under in care can get a higher subsidy for their second child and younger children.  

The rates for each child are worked out using two separate income tests.

The ‘standard rate child’ is usually the eldest CCS eligible child aged 5 or under. The standard rate child will get the standard CCS rates.

The ‘higher rate child’ is the second and any younger children aged 5 or under. The higher rate for second and younger children is calculated using the for second and younger children.

The higher subsidy for second and younger children will end when a family earns $367,563 or more.

Rates for second and younger children from 7 July 2025

Family incomeSecond and younger children subsidy rate
$0 to $143,27395%
More than $143,273 to below $188,273Decreasing from 95%The percentage decreases by 1% for every $3,000 of income a family earns
$188,273 to below $267,56380%
$267,563 to below $357,563Decreasing from 80%The percentage decreases by 1% for every $3,000 of income a family earns
$357,563 to below $367,56350%
$367,563 or moreHigher CCS rates no longer apply, all children in the family will receive the standard CCS rate

2025–2026 hourly rate caps

Care typeHourly rate cap
for children below school age		Hourly rate cap
for school-age children
Centre Based Day Care$14.63$12.81
Outside School Hours Care$14.63$12.81
Family Day Care$13.56$13.56
In Home Care (per family)$39.80$39.80

Shared care

If a child’s parents are separated, both parents may be eligible for CCS if they:

  • share care responsibilities, and
  • are each liable for child care fees.

Each parent must lodge their own CCS claim. They will each need to meet the eligibility criteria outlined above.

The amount of CCS each parent can get will depend on their income and activity level as outlined above. Where a parent has re-partnered, their partner’s income and activity level will also be taken into account.

Combined families, with children from a current and previous relationship, are counted as a single family unit when determining entitlement to the higher rate for second and younger children.

Separated parents can find more information on the Services Australia website.

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CCS News CCS Rates

Child Care Subsidy hourly rate caps from July 2025

The Child Care Subsidy (CCS) hourly rate caps will go up from 7 July 2025.

The hourly rate caps are adjusted annually based on the Consumer Price Index (CPI).

The maximum hourly rate we subsidise is based on the type of approved care. The 2025–2026 (FY2026) hourly rate caps for each care type are outlined below.

Care typeHourly rate cap
for children below school age		Hourly rate cap
for school-age children
Centre Based Day Care$14.63$12.81
Outside School Hours Care$14.63$12.81
Family Day Care$13.56$13.56
In Home Care (per family)$39.80$39.80
Child Care Subsidy hourly rate caps from July 2025

You can find more detailed from the Family eligibility and entitlement page published by the Department of Education.

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CCS Eligibility CCS News

From 5 January 2026, families can get at least 72 subsidised hours of care each fortnight for each child

The Australian Government is replacing the Child Care Subsidy (CCS) Activity Test from January 2026 to guarantee at least 3 days of subsidised early childhood education and care (ECEC) each week for children who need it.

How will this initiative work?

From January 2026, all families will be eligible for at least 72 hours of subsidised ECEC per fortnight (3 days per week), regardless of their activity levels.

Families can still get 100 hours of subsidised ECEC per fortnight if they meet activity requirements or have a valid exemption.

Families caring for a First Nations child will be eligible for 100 hours of subsidised ECEC per fortnight.

Who will benefit?

The 3 Day Guarantee will benefit all families through certainty around eligibility for subsidised ECEC.

In its first full financial year the 3 Day Guarantee will benefit around 66,700 families, and more than 100,000 families will be eligible for additional hours of subsidised care.

Families earning over $533,280 in 2024-25 are not eligible for subsidised care – consistent with current settings.

Example of benefits

Sarah and Alex are a couple with one child accessing ECEC at 3 days (36 hours) per week. Their combined family income is $90,000 per annum. Sarah works full-time and Alex works 8 hours per week.

Previously, they were eligible for 18 hours of subsidised ECEC per week (36 hours per fortnight). From January 2026, they are eligible for 36 hours per week (72 hours per fortnight).

This saves them $230 per week of care ($11,400 per annum) from their provider charging the average Centre-Based Day Care hourly fee, assuming one child in care for 36 hours per week 50 weeks per year with the average projected fee for 2025-26.

For different family income thresholds, the better off amounts are:

If you want to estimate the possible benefits you might receive from this initiative you can use the 3 Day Guarantee – Early Education Child Care Subsidy Calculator.

How much will it cost?

The Australian Government will invest $426.7 million over five years from 2024-25, including implementation costs for Services Australia, to guarantee eligibility to at least 3 days of subsidised ECEC each week for children who need it.

If you want to learn more about the 3 days of subsidised ECEC you can visit the Fact Sheet – 3 Day Guarantee – Early Education page.

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CCS News

Discounted care for early childhood workforce

Providers can offer discounted early childhood education and care (ECEC) to some employees without reducing their Child Care Subsidy (CCS).

Who can get a discount

The workforce discount is an optional incentive to help you attract and retain qualified staff.

You can offer the workforce discount to: 

  • early childhood teachers and educators
  • centre directors and coordinators who hold an ECEC qualification
  • cooks.

The employee must:

  • work at a Centre Based Day Care or Outside School Hours Care service
  • have a child enrolled at a service where they work or that you own. 

How the discount works

Unlike a standard discount, the workforce discount:

  • is applied after CCS calculation
  • allows you to report the full fee
  • requires the employee to pay at least 5% of the gap fee.

The gap fee is the difference between your fee and the family’s CCS amount. Families who get CCS must make a co-contribution to their child care fees.

As a provider, you can:

  • choose whether to offer the discount to employees
  • determine the discount amount, provided employees pay at least 5% of the gap fee.

How to report the discount

Usually, when offering a standard discount:

  • you must report the discounted fee in session reports
  • the family’s CCS will then be calculated based on the discounted amount.

When offering the workforce discount:

  • you should report the full fee in session reports
  • the employee’s CCS entitlement will not be affected by the discount.

Scenarios

Sangeetha the educator

Sangeetha works as an educator at your Centre Based Day Care service. She has one child attending the same service 3 days per week. Your daily fee is $100. Sangeetha’s CCS rate is 70%.

Without a discount:

  • Sangeetha’s weekly fee is $300
  • Sangeetha’s CCS covers $210 (70% of $300)
  • Sangeetha must pay you a gap fee of $90.

With a 50% workforce discount:

  • you report the full $300 fee 
  • Sangeetha’s CCS remains at $210
  • you then discount Sangeetha’s gap fee by 50%
  • Sangeetha now pays you a gap fee of $45
  • Sangeetha saves $45 every week while you retain a valuable educator.

Priya the director

Priya is the director at one of your Centre Based Day Care services. Her school-age child attends one of your OSHC services before and after school 5 days a week. You charge $30 per session. Priya’s CCS rate is 50%.

Without a discount:

  • Priya’s weekly fee is $300
  • Priya’s CCS covers $150 (50% of $300)
  • Priya must pay you a gap fee of $150.

With a 90% workforce discount:

  • you report the full $300 fee 
  • Priya’s CCS remains at $150
  • you then discount Priya’s gap fee by 90%
  • Priya now pays you a gap fee of $15
  • Priya saves $135 every week, helping you retain your centre director.

Mark the cook

Mark is a cook at your Centre Based Day Care service. His child attends the service 2 days per week. Your daily fee is $110. Mark’s CCS rate is 60%.

Without a discount:

  • Mark’s weekly fee is $220
  • Mark’s CCS covers $132 (60% of $220)
  • Mark must pay you a gap fee of $88.

With a 75% workforce discount:

  • you report the full $220 fee 
  • Mark’s CCS remains at $132
  • you then discount Mark’s gap fee by 75%
  • Mark now pays you a gap fee of $22
  • Mark saves $66 every week, making it more affordable for his family.

Maximum discount example

Afsa is an early childhood teacher with one child attending your service 5 days per week. Your daily fee is $120. Afsa’s CCS rate is 85%.

Without a discount:

  • Afsa’s weekly fee is $600
  • Afsa’s CCS covers $510 (85% of $600)
  • Afsa must pay you a gap fee of $90.

With a maximum 95% workforce discount:

  • you report the full $600 fee
  • Afsa’s CCS remains at $510
  • you then discount Afsa’s gap fee by 95%, noting she must still pay 5% of the gap fee
  • Afsa now pays you a gap fee of $4.50
  • Afsa saves $85.50 every week, allowing her to continue working full-time as a qualified ECT.

Remember: 

  • you choose the discount amount
  • the employee must pay at least 5% of the gap fee
  • you always report the full fee to maintain their CCS entitlement.