Making the Most of
The Child Care Subsidy

The Child Care Subsidy (CCS) helps eligible families reduce out-of-pocket childcare expenses. This allows children to enjoy more quality early childhood education and care, giving them a strong start in life. 

How does the CCS work?

Your CCS rate is determined by several factors, including: 

• Your family’s income 
• Your child’s age 
• Recognised activities your family engages in, such as work or volunteer hours 
• The hourly rate charged by your childcare provider

Child Care Subsidy for 2025-26

The government announced changes to the Child Care Subsidy which came into effect on the 7^th July 2025. These included increased income thresholds meaning more families are able to access CCS and changes to the hourly rate cap which can further reduce out of pocket fees.

For the 2025-26 financial year: 

• Families earning up to $535,279 may qualify for CCS. 
• Families earning below $85,279 receive a 90% subsidy, significantly lowering the cost of care. 
• Families earning under $367,563 with more than one child could get a higher subsidy—up to 95% for younger children. 
• The hourly cap has increased to $14.63 helping to reduce your out of pocket fees
• Additional preschool and kindergarten subsidies are available for children aged 3-5 years attending a government-approved program. Find out more by clicking here.

The 3 Day Guarantee

We’re thrilled about the new 3 Day Guarantee coming soon from 5 January 2026 making quality early learning more accessible than ever for Australian families!

• Childcare Subsidy (CCS) eligible families will be guaranteed at least 3 days (72 hours) of subsidised care per fortnight, regardless of their activity levels.
• Families may be entitled to up to 100 hours of subsidised care per fortnight if they hold a valid exemption, care for a First Nations child, or pass the activity test.

Tips to maximise your Child Care Subsidy (CCS)

1. Update your family income

It’s important to ensure that the income you report to Services Australia is current. Updating your estimated income when your situation changes helps to calculate your correct subsidy rate and avoids missing out on additional savings. 

The subsidy accounts for the lowest activity amount between partners. Combine hours from multiple activities to increase eligible hours. The 3 Day Guarantee coming into effect on the 5 January 2026 means all CCS eligible families will be entitled to 3 days of subsidised care per fortnight, regardless of your family’s activity levels.

3. Extra Support for Aboriginal and Torres Strait Islander Children 

Aboriginal and/or Torres Strait Islander children are guaranteed at least 36 hours of subsidised care per fortnight, creating reliable access to early education, regardless of family activity levels. From January 5 2026 this will increase to 100 hours of subsidised care per fortnight.

By keeping your details updated and understanding eligible activities, you can make the most of your CCS benefits. 

How to get started

• Once you’ve chosen your preferred Guardian childcare centre, apply for the Child Care Subsidy through Services Australia. 
• Use the Child Care Subsidy Calculator to predict your out-of-pocket costs. 
• Finalise your eligibility to lower childcare fees and make quality education and care more affordable for your family. 

CCS Made Simple

We know that understanding your CCS entitlements may sometimes be confusing. Visit your nearest Guardian Centre, or contact our friendly team, to learn more about the subsidy and how we can support your family. We can help: 

• Guide you through the subsidy process 
• Share resources to simplify CCS 
• Introduce you to the educators who’ll support your child to learn and grow. 

Start your CCS journey today and help create the best start for your child!