Child Care Subsidy Calculator

Your Child Care Subsidy (CCS) is worked out based on four factors:

• Your combined family income
• Your levels of recognised participation
• The number of subsidised hours you can access each fortnight
• Your centre’s hourly fee compared to the government’s hourly rate cap

Your family income determines your subsidy percentage. That percentage is then applied to whichever is lower: your centre’s hourly fee or the government’s hourly rate cap, which is $14.63 per hour for centre-based day care in 2025–26.

Centrelink also holds back 5% of your entitlement by default. This reduces the chance of an overpayment at the end of the financial year.

You can use the calculator to understand how much of a CCS rebate you may be entitled to. Simply enter your family income, your participation levels, and your days and hours of care. The calculator will use this information to show you an estimate of both your subsidy and your out-of-pocket costs.

The maximum Child Care Subsidy is 90% of your fees, up to the government’s hourly rate cap of $14.63.

Families with a combined income at or below the lower income threshold receive this full 90%. For 2025–26, that threshold is $85,279. From 6 July 2026, the threshold rises to $88,520.

Above the threshold, your subsidy reduces by 1 percentage point for every $5,000 of additional family income. If you have a second or younger child in care, a higher rate of up to 95% may apply, which is covered in more detail in the next question.

The 95% rate is a higher subsidy that can apply to your second and younger children aged 5 or under, while you have more than one child in care. It is not the standard maximum.

To qualify, three factors need to apply: 

• Your combined family income is under $367,563
• You have more than one child aged 5 or under in approved care
• Each child has their own Child Care Subsidy claim

Services Australia treats your eldest eligible child as the standard rate child, receiving up to 90%. The higher rate applies to your younger children. They do not need to attend the same centre.

If you only have one child in care, the maximum rate available to you is 90%.

Families with a combined income under $535,279 can receive some Child Care Subsidy in 2025-26. At or above that figure, the subsidy is 0%. From 6 July 2026, this upper cut-off rises to $538,520.

Between the lower threshold and the upper cut-off, your percentage tapers down gradually. This means most families sit somewhere between the full 90% and 0%, rather than at either end. The calculator above shows where your income is likely to place your family.

The most common reasons a family receives little or no Child Care Subsidy rebate are:

• Your combined family income is at or above the upper cut-off ($535,279 in 2025-26, rising to $538,520 from 6 July 2026), which sets the subsidy to 0%.
• Your child does not meet the immunisation requirements.
• You or your child does not meet the residency requirements.
• Your child is attending a service that is not an approved child care provider.
• Your income has not been confirmed with Services Australia after the financial year, which can pause your payments.

If you believe you should be eligible but are not receiving the subsidy you expect, you can start by checking your details in your myGov account. An out-of-date income estimate or activity record is a common reason for being undersubsidised.

For a detailed explanation of who is eligible and how the payment works, see our complete Child Care Subsidy guide.

The Child Care Subsidy reduces your fees by up to 90%, or up to 95% for a second or younger child. On its own, it does not usually make long day care completely free. Even at the highest rate, families will normally pay a small gap fee.

Separately from the Child Care Subsidy, some three and four-year-olds can access free or low-cost kindergarten and preschool hours through state and territory government programs. You can normally access this funding alongside the Child Care Subsidy. What is available depends on your state and your child’s age. 

For more ways to lower your out-of-pocket costs, including additional support some families can access beyond the Child Care Subsidy, see our guide to making the most of your Child Care Subsidy.

There are two important changes to the CCS rules that families should be aware of in 2026:

1. From 5 January 2026, the 3 Day Guarantee replaced the old activity test as the baseline. Every eligible family now receives at least 72 hours of subsidised care per fortnight, which is around three days a week, regardless of how much work, study or other activity they do.
2. From 6 July 2026, the income thresholds and hourly rate caps increased. The lower income threshold for the maximum 90% rate rises to $88,520, and the upper cut-off rises to $538,520. Families with an active subsidy arrangement move to the new rates automatically.

To keep your subsidy flowing, it also helps to confirm your 2024-25 family income with Services Australia after the end of the financial year, usually by lodging your tax return. If your income is not confirmed by the deadline, your payments might stop, and you may need to repay some subsidy.

You no longer need to meet the activity test for the baseline amount of care. Since 5 January 2026, the 3 Day Guarantee means every eligible family receives at least 72 hours of subsidised care per fortnight without needing to meet an activity test.

If you want more than the baseline, your activity still impacts your entitlements. Families with 48 or more hours of recognised activity per fortnight, such as work, study or training, can access up to 100 hours of subsidised care per fortnight.

The Child Care Subsidy is calculated on the government’s hourly rate cap, not always on your centre’s full fee. For centre-based day care, the cap is $14.63 per hour in 2025-26. If your centre charges more than the cap, the subsidy covers a percentage up to that cap, and you pay the difference above it.

This is why two families with the same subsidy percentage can have different out-of-pocket costs. The calculator above uses your actual daily fee, so the estimate reflects the gap you would pay rather than the cap alone.

The Child Care Subsidy replaced the Child Care Rebate in July 2018. If you have searched for a Child Care Rebate calculator, the calculator above is what you are looking for. It uses the current Child Care Subsidy rules, including the 2026 changes, to estimate your subsidy and your out-of-pocket cost.