Childcare Cost Calculator — Australia 2025-26
Working out the real cost of childcare after subsidies.
Estimate your real Australian childcare cost after Child Care Subsidy. Model hourly caps, gap fees, activity-test assumptions, and out-of-pocket costs across long day care, family day care, OSHC, and in-home care.
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 2025-26
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 2025-26. 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 $83,280; tapers to 0% above $533,280. Family income test includes both partners' combined taxable income. Activity test determines hours subsidised (up to 100/fortnight).
Hourly cap and gap fee
CCS pays a percentage of an hourly cap, not your actual fee. 2025-26 caps: LDC $13.73/hr, FDC $12.72/hr, OSHC $12.01/hr. If your centre charges $15/hr, CCS only covers the percentage of $13.73 — the $1.27 above cap is a 'gap fee' you pay 100%.
Activity test determines subsidised hours
Both parents' activity (work, study, volunteer) determines hours subsidised: Under 8 hours/fortnight: no CCS. 8-16 hours: up to 36 hours/fortnight. 16-48 hours: up to 72 hours. 48+ hours: up to 100 hours. Low-income exemption for families earning under $83,280.
Typical Australian childcare costs by type and location
Daily rates by care type 2025-26
| 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: ~79%. $23,040 gross annual cost × 21% = $4,838 out-of-pocket for one child. At $180,000 income: ~62% subsidy, $8,755 out-of-pocket. Higher incomes see significantly larger absolute costs.
Child Care Subsidy (CCS) rates and thresholds 2025-26
CCS percentage by family income
| Family income | CCS rate |
|---|---|
| Up to $83,280 | 90% |
| $83,280 - $188,280 | Tapers from 90% to 50% |
| $188,280 - $283,280 | Tapers from 50% to 20% |
| $283,280 - $533,280 | Tapers from 20% to 0% |
| Above $533,280 | 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.
Activity test hours
Subsidised hours depend on activity (work, study, volunteer) of both parents: Under 8hr/fortnight: no subsidy. 8-16: 36 hr/fortnight subsidised. 16-48: 72 hr. 48+: 100 hr. Low-income exemption: families under $83,280 get 36 hours regardless of activity.
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 2025-26?
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 2025-26?
Up to 90% of childcare fees for families earning under $83,280. Tapers to 0% at $533,280. Subsidy paid directly to childcare provider; you pay the gap fee. Calculated from combined family income and activity test.
How does the CCS activity test work?
Both parents' activity determines subsidised hours: 8-16hr/fortnight = 36hr subsidised. 16-48hr = 72hr. 48+hr = 100hr. Work, study, and volunteering count. Low-income families under $83,280 get 36hr regardless.
Why is there a gap fee even with CCS?
CCS pays a percentage of the hourly cap ($13.73 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.
Last checked: April 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\u2019s actual fee. At a $155/day centre with a $87.36/day cap, even 90% CCS means you pay $8.74 (10% of capped fee) plus $67.64 gap fee = $76.38/day — not $15.50. 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 net weekly cost changes as household income rises. The chart marks the key thresholds at $80,000 (CCS starts tapering from 90%) and $190,000 (annual cap kicks in). Your current income position is shown as a blue dot. This is useful for modeling different scenarios — for example, what happens if one partner increases their income or takes on additional work.
This calculator uses published 2025-26 rates for planning. Your actual CCS may differ because: (1) CCS rates are indexed annually; (2) Actual provider fee may change; (3) Activity test hours may vary from fortnight to 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 ($10.92/hr for centre-based day care) beyond which no subsidy is paid. If your centre charges $19.38/hr ($155/day), CCS only covers $10.92/hr. You pay the gap ($8.46/hr) 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 childcare.gov.au search tool to compare providers and their fees.
Family at $120,000 income (76% CCS rate). Provider fee: $155/day. CCS cap: $87.36/day. Gap fee: $155 - $87.36 = $67.64/day. CCS on capped portion: $87.36 × 76% = $66.39/day. Your cost per day: $67.64 + ($87.36 - $66.39) = $67.64 + $20.97 = $88.61/day. At 3 days/week: $265.83/wk. The CCS percentage sounds generous at 76%, but the true out-of-pocket rate is 57% of the total daily fee due to 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 $80,000, 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.
If you or your partner are close to an activity threshold (8, 16, or 48 hours per fortnight), increasing activity hours to cross the threshold can unlock significantly more subsidised hours. Going from 7 hours (0 CCS hours) to 8 hours (36 CCS hours per fortnight) is a step function. Similarly, from 47 hours (72 CCS hours) to 48 hours (100 CCS hours) — that is 28 extra hours of subsidised care for one additional hour of activity.
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. The gap fee on the lower-cost provider is also smaller or zero, 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, working 3 days = 76% CCS. At 90k, 3 days, the effective childcare cost might be $160/wk — offset by 3 days of salary. At $40–$50/hr, three days generates $960–$1,200/wk net of tax — well ahead. Even at the break-even point, working maintains career progression and super accumulation.
When returning to work, you may initially have 0 activity hours. CCS provides a 3-month transition: if you are actively looking for work after parental leave, you can access 100 hours of subsidised care per fortnight for up to 3 months. This gives you time to find a position without paying full fees. Contact Services Australia when you finish parental leave to ensure this is applied correctly.
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.