Childcare Cost Calculator — Australia 2026-27
Estimate your real Australian childcare cost after Child Care Subsidy. Model hourly caps, gap fees, the 3 Day Guarantee subsidised hours, and out-of-pocket costs across long day care, family day care, OSHC, and in-home care.
Working out the real cost of childcare after subsidies.
Australia Childcare Cost Notes
Australian childcare costs are often driven by the interaction between the Child Care Subsidy rate, hourly fee caps, activity-test assumptions, and the number of days each child attends.
This version is tailored to Australian family budgeting, where fee caps, gap fees, and the mix of long day care, family day care, and outside-school-hours care all matter.
Australian version note: this childcare cost keeps the calculation anchored to AUD amounts, local product names, Australian tax language, and the way banks, employers, agencies, or advisers usually describe the inputs.
Local cues stay visible where they matter: ATO, PAYG, superannuation, Medicare levy, stamp duty, kilometres, comparison rate, APRA, Centrelink, GST, and Australian-dollar results are not rewritten into overseas vocabulary.
Use the output as an Australian estimate first, then sanity-check it against local quotes, lender criteria, government thresholds, state rules, or professional advice before relying on the number.
Estimates only. CCS rates are indexed annually. Always verify your subsidy at servicesaustralia.gov.au. Gap fees depend on your provider's actual rates.
How Australian childcare costs are calculated 2026-27
Childcare in Australia can cost $100-200+ per day per child before subsidies. Understanding daily rates, hourly caps, activity fees, and the Child Care Subsidy (CCS) is critical to budgeting accurately.
Daily fee structure
Long Day Care (LDC) typically $120-180/day in 2026-27. Family Day Care $90-130/day. In-home care $150-200/day. Before- and after-school care: $25-40 per session. Vacation care: $80-130/day. Fees vary significantly by location — Sydney and Melbourne 20-40% above regional.
Child Care Subsidy (CCS) basics
CCS reduces out-of-pocket costs based on family income, activity test, and child age. Subsidy rate: up to 90% for families earning under $88,520; tapers to 0% above $538,520. Family income test includes both partners' combined taxable income. Since 5 January 2026 the 3 Day Guarantee gives every eligible family at least 72 subsidised hours a fortnight, rising to 100 hours with more than 48 hours of recognised activity. There is no annual cap on the subsidy — the old $10,655-per-child yearly limit was abolished.
Hourly cap and gap fee
CCS pays a percentage of an hourly cap, not your actual fee. Caps from 6 July 2026: centre-based day care $15.19/hr below school age ($13.30/hr school age), family day care $14.08/hr, outside school hours care $13.30/hr, in-home care $41.31/hr per family. If your centre charges $17/hr for a pre-school-age place, CCS only covers the percentage of $15.19 — the $1.81 above cap is a 'gap fee' you pay 100%. On a 12-hour session that cap works out to $182.28/day, so a $210/day centre leaves $27.72/day completely unsubsidised.
Subsidised hours — the 3 Day Guarantee
From 5 January 2026 the old activity-test tiers (0 / 24 / 36 / 72 / 100 hours) were scrapped. Every CCS-eligible family now gets at least 72 subsidised hours a fortnight — three days a week — with no activity test and no low-income exemption to qualify for. You get 100 hours a fortnight instead if you have more than 48 hours of recognised activity (work, study, volunteering, looking for work) each fortnight, an Aboriginal and/or Torres Strait Islander child in your care, an exemption or exceptional circumstances, or Additional Child Care Subsidy. Hours used beyond your entitlement attract no subsidy at all.
Typical Australian childcare costs by type and location
Daily rates by care type 2026-27
| Care type | Typical daily rate | Metro premium |
|---|---|---|
| Long Day Care (Sydney/Melbourne) | $140-200 | 20-30% |
| Long Day Care (regional) | $110-140 | — |
| Family Day Care | $90-130 | 10-15% |
| In-home care | $150-200 | 15-25% |
| Before/after school care | $25-40/session | 15% |
| Vacation care | $80-130/day | 10-15% |
Average annual cost examples (before CCS)
One child, 3 days/week LDC at $160/day, 48 weeks: $23,040/year. Two children, same schedule: $46,080/year. Before-school care 5 days/week at $28/session, 40 weeks: $5,600/year.
After CCS on typical family income ($120,000)
CCS rate at $120,000 combined income: ~84%. $23,040 gross annual cost × 16% = $3,686 out-of-pocket for one child. At $180,000 income: ~72% subsidy, $6,451 out-of-pocket. Higher incomes see significantly larger absolute costs.
Child Care Subsidy (CCS) rates and thresholds 2026-27
CCS percentage by family income
| Family income | CCS rate |
|---|---|
| Up to $88,520 | 90% |
| $88,520 - $288,520 | Tapers from 90% to 50% |
| $288,520 - $438,520 | Tapers from 50% to 20% |
| $438,520 - $538,520 | Tapers from 20% to 0% |
| Above $538,520 | 0% (no CCS) |
Second and subsequent child loading
Families with more than one child aged 5 or under get higher CCS for the second and subsequent children. Additional rate is 30 percentage points above standard CCS — capped at 95%. A family with two toddlers on 70% CCS gets 95% on the second child, substantially cutting second-child costs.
Subsidised hours per fortnight (from 5 January 2026)
| Your circumstances | Subsidised hours per fortnight |
|---|---|
| Every CCS-eligible family — no activity test (3 Day Guarantee) | 72 hours (3 days a week) |
| More than 48 hours of recognised activity per fortnight | 100 hours |
| Aboriginal and/or Torres Strait Islander child | 100 hours |
| Exemption, exceptional circumstances, or ACCS | 100 hours |
Recognised activity still includes paid work, self-employment, study and training, volunteering, and actively looking for work — but it now only decides whether you move from 72 hours up to 100. It no longer changes your CCS percentage, and there is no annual cap on the total subsidy you can receive.
Hourly rate caps from 6 July 2026
| Care type | Below school age | School age |
|---|---|---|
| Centre-based day care | $15.19/hr | $13.30/hr |
| Outside school hours care | $15.19/hr | $13.30/hr |
| Family day care | $14.08/hr | $14.08/hr |
| In-home care (per family) | $41.31/hr | $41.31/hr |
How to claim CCS
Apply through myGov linked to Centrelink. Complete the Child Care Subsidy claim form. Provide activity details, estimated income. CCS paid directly to your childcare provider — you pay the gap fee. Reconciliation at end of financial year adjusts for actual income.
FAQFrequently asked questions about Australian childcare costs
How much does childcare cost in Australia 2026-27?
Long Day Care: $120-200/day typical (metro premium). Family Day Care: $90-130/day. Before/after school care: $25-40/session. With CCS, out-of-pocket for median family is $40-80/day.
What is the Child Care Subsidy 2026-27?
Up to 90% of childcare fees for families earning under $88,520. Tapers to 0% at $538,520. Subsidy paid directly to childcare provider; you pay the gap fee. Calculated from combined family income, with subsidised hours set by the 3 Day Guarantee. There is no annual cap.
How do CCS subsidised hours work under the 3 Day Guarantee?
The activity-test tiers were replaced on 5 January 2026. Every CCS-eligible family now gets at least 72 subsidised hours a fortnight — 3 days a week — with no activity test. You get 100 hours a fortnight if you have more than 48 hours of recognised activity (work, study, volunteering, looking for work) each fortnight, an Aboriginal and/or Torres Strait Islander child, an exemption or exceptional circumstances, or Additional Child Care Subsidy.
Is there still an annual cap on Child Care Subsidy?
No. The annual CCS cap — $10,655 per child per year for families earning above about $190,000 — has been removed. There is no yearly limit on how much subsidy you can receive, whatever your income. Your CCS is limited only by your subsidy percentage, the hourly rate cap, and your subsidised hours.
Why is there a gap fee even with CCS?
CCS pays a percentage of the hourly cap ($15.19 for LDC). If your centre charges more than the cap, the difference is a gap fee you pay 100% — uncovered by CCS.
Can I claim childcare tax deductions?
No. Australian individual taxpayers cannot claim childcare as a work-related deduction (High Court ruling: Lodge, 1972). CCS is the main government support. Some salary packaging through approved employers allows partial tax benefits.
Is it worth returning to work after childcare?
Usually yes. Even at 50% CCS and high daycare costs, return to work builds super, career, and retirement security. However, effective marginal tax rates (tax + CCS taper + child support reduction) can be 70-100% for second earners in some income ranges.
Where these figures come from
Income figures on this page are drawn from the Australian Taxation Office (ATO), the Fair Work Commission (minimum wage and awards), and the Australian Bureau of Statistics (national earnings).
- PAYG withholding & income tax rates — ATO — Individual income tax rates.
- Superannuation Guarantee rate — ATO — Super guarantee percentage.
- National minimum wage — Fair Work Ombudsman — Minimum wages.
- Average weekly earnings — ABS — Average Weekly Earnings.
- Medicare levy — ATO — Medicare levy.
- CCS rates, income thresholds & hourly rate caps — Department of Education — Child Care Subsidy and DSS Family Assistance Guide 3.5.3 — CCS hourly rate caps.
- Subsidised hours & the 3 Day Guarantee — Department of Education — 3 Day Guarantee and Services Australia — Child Care Subsidy.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your net weekly cost is what actually comes out of your pocket after the CCS subsidy. The income curve chart (Standard mode) shows how your cost changes across the full income range — useful for understanding how a pay rise or change in circumstances affects childcare affordability.
The CCS percentage applies to the capped fee — not your provider’s actual fee. The centre-based cap is $15.19/hr below school age, which on a 12-hour session works out to $182.28/day. At a $210/day centre, even 90% CCS means you pay $18.23 (10% of the capped fee) plus the $27.72/day that sits above the cap = $45.95/day — not $21.00. The gap fee is the biggest hidden cost of childcare that the CCS percentage alone doesn't reveal.
Switch to Standard mode to see how your CCS rate changes as household income rises. The curve sits flat at 90% up to $88,520, then steps down one percentage point for every extra $5,000 of family income until it reaches 0% at $538,520. Your current income position is shown as a blue dot. This is useful for modelling different scenarios — for example, what happens if one partner increases their income or takes on additional work. There is no longer an annual cap to worry about at higher incomes.
This calculator uses published 2026-27 rates for planning. Your actual CCS may differ because: (1) CCS rates are indexed annually; (2) Actual provider fee may change; (3) Your subsidised hours may change if your recognised activity moves above or below 48 hours a fortnight; (4) Your income may be assessed differently by Services Australia. Use this as a planning guide and verify your exact entitlement through myGov.
The gap fee is the most important and least understood aspect of childcare costs. Here is exactly how it works.
The government sets a maximum hourly rate — $15.19/hr for centre-based day care below school age, $13.30/hr school age — beyond which no subsidy is paid. If your centre charges $17.50/hr ($210 for a 12-hour day), CCS only covers $15.19/hr. You pay the gap ($2.31/hr, or $27.72/day) yourself — on top of your percentage share of the capped portion. This is why two families with identical CCS rates can pay very different amounts: it depends entirely on their provider's fee.
Choosing a provider who charges at or close to the CCS cap eliminates the gap fee entirely. Some community-run and government-operated childcare centres charge at or near the cap. Quality-assured centres operate at a wide range of fee levels — higher fees don't always mean better quality. Use the Australian Government's Child Care Finder to compare providers and their fees.
Family at $120,000 income (84% CCS rate). Provider fee: $210/day for a 12-hour session. CCS cap: $15.19/hr × 12 = $182.28/day. Gap fee: $210 − $182.28 = $27.72/day. CCS on the capped portion: $182.28 × 84% = $153.12/day. Your cost per day: $27.72 + ($182.28 − $153.12) = $27.72 + $29.16 = $56.88/day. At 3 days/week: $170.65/wk. The CCS percentage sounds generous at 84%, but the true out-of-pocket rate is 27% of the total daily fee because of the gap fee. Always calculate using the actual provider fee and the cap — not just the CCS percentage.
Beyond choosing a cheaper provider, there are several strategies that can significantly reduce your net childcare cost.
Salary sacrificing reduces your assessable income, which can push you into a higher CCS rate bracket. If your household income is just above $88,520, an additional $5,000–$10,000 in super contributions could move you back to the 90% maximum rate — saving thousands in childcare fees. Consult a financial adviser about the optimal balance, as super contributions also build retirement savings.
Since the 3 Day Guarantee started on 5 January 2026 there is only one activity threshold left. Every eligible family gets 72 subsidised hours a fortnight no matter what, and going from 48 hours of recognised activity to more than 48 hours lifts that to 100 hours — 28 extra hours of subsidised care per fortnight for a small increase in work, study, or volunteering. If you use four or five days of care a week, crossing that threshold is worth checking.
Fee comparison is the single highest-impact action. A provider charging $120/day vs $155/day saves $35/day — at 3 days/week, 50 weeks: $5,250/yr before CCS adjustments. If either provider charges above the hourly rate cap, the cheaper one also carries a smaller (or zero) gap fee, so the saving compounds. Use the childcare subsidy estimator on the Services Australia website and apply it to several providers in your area before committing.
Returning to work often triggers the question: "Does the extra income from working actually make us better off after childcare costs?" Here is how to think through it.
Many parents worry about working only to "pay for childcare." The calculation: net income from returning to work (after tax) minus net childcare cost. At $120,000 household income your CCS rate is 84%, so three days at a $155/day centre costs about $74/wk out of pocket. At $90,000 the rate is the full 90% and the same care costs about $47/wk. At $40–$50/hr, three days of work generates roughly $900–$1,150/wk before tax — well ahead of the childcare bill. Even at the break-even point, working maintains career progression and super accumulation.
When returning to work you may initially have no activity hours at all. Since the 3 Day Guarantee began on 5 January 2026 that no longer costs you your subsidy: every CCS-eligible family gets 72 subsidised hours a fortnight — three days a week — regardless of whether either parent is working, studying, or looking for work. That gives you a settled care arrangement while you find a position. Once you have more than 48 hours of recognised activity a fortnight (looking for work counts), tell Services Australia so your entitlement moves up to 100 hours.
One often-missed factor: childcare years reduce superannuation accumulation for the lower-earning partner (typically the mother). Government Paid Parental Leave includes super from 2025 onward. But every year of reduced or no employment = less super growth. Working part-time and maintaining super contributions — even at a cost close to break-even on a take-home basis — has significant long-term financial value. Use the Super calculator to model the long-term difference between working part-time vs staying home for 3–5 years.