The Child Care Subsidy (CCS) hourly rate caps will go up from 6 July 2026.
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 2026–2027 (FY2027) hourly rate caps for each care type are outlined below.
The Australian Government Department of Education published the 2026–2027 (FY2027) 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 FY2027 is increasing to $538,520.
CCS rates from 6 July 2026
Family income
Subsidy rate
Up to $88,520
90%
More than $88,520 to below $538,520
Between 90% and 0%The percentage decreases by 1% for every $5,000 of income a family earns
$538,520 or more
0%
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 $370,727 or more.
Rates for second and younger children from 7 July 2025
Family income
Second and younger children subsidy rate
Up to $146,437
95%
More than $146,437 to below $191,437
Decreasing from 95%The percentage decreases by 1% for every $3,000 of income a family earns
$191,437 to below $270,727
80%
$270,727 to below $360,727
Decreasing from 80%The percentage decreases by 1% for every $3,000 of income a family earns
$360,727 to below $370,727
50%
$370,727 or more
Higher CCS rates no longer apply, all children in the family will receive the standard CCS rate
2026–2027 hourly rate caps
Care type
Hourly rate cap for children below school age
Hourly rate cap for school-age children
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
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.
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:
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.
There are rules around claiming Child Care Subsidy (CCS) for Family Day Care (FDC) and In Home Care educators who care for relatives. The rules do not apply to Centre Based Day Care (CBDC) or Outside School Hours Care (OSHC) educators.
You generally can’t claim CCS for an educator’s own child on any day they are working as a Family Day Care (FDC) educator. This applies even if the child attends another FDC service.
CCS should be payable if the child attends a Centre Based Day Care (CBDC) or Outside School Hours Care (OSHC) service instead.
As a provider, you must:
check whether any parents (or their partners) are FDC educators
confirm whether an exception applies
collect and keep the required evidence.
Please refer to the table below for the exceptions and the evidence required.
The provider must collect and keep documentary evidence of the diagnosis. The diagnosis must be less than 24 months old, unless the diagnosis is permanent.
The provider must collect and keep documentary evidence of the diagnosis (including undergoing disability assessment). The evidence must be current and issued by a relevant professional.
The child lives in a remote or very remote area
The provider must collect and keep documentary evidence, such as evidence of the address.
At the time care is provided to the child, the parent was working for at least 2 hours at another job (not as an FDC educator)
The provider must collect and keep documentary evidence that shows the parent was working for at least 2 hours at the time the care was provided by your service.
At the time care is provided to the child, the parent was engaged in scheduled activities as part of a Certificate III level or above qualification
The provider must collect and keep documentary evidence that shows the parent was engaged in the activity at the time the care was provided by your service.
You must tell us within 14 days if you close your service or change your operating hours. This is a requirement under Family Assistance Law.
You can generally only claim the Child Care Subsidy (CCS) when your service is open, except for public holidays, declared emergency periods, or approved closures for mandatory national child safety training.
Please refer to the CCS rules during service closures listed below. Whether you can claim CCS depends on the reason for the closure.
Mandatory National Child Safety Training: Services approved for CCS can close for up to 5 hours a year so staff can complete mandatory national child safety training via the Geccko platform. These closures must begin no earlier than 5:00 pm.
Public Holidays: You can claim CCS for a public holiday even when the service is closed, but you must only claim for children who would have normally attended on that specific day.
Declared Emergency Periods: During a formally declared CCS period of emergency, you may be eligible to claim CCS and waive gap fees even when your service is closed.
Standard Closures & Absences: For standard, non-emergency full-day closures (such as staff training days outside the national safety training parameters, or operational shutdowns), you must not submit session reports or claim absences for CCS.
If your service is closed for part of the day, your reported sessions of care must align with your opening hours.
If you close your service, you must not submit session reports unless it is a public holiday or during a period of emergency where your service would have been otherwise open.
