Child Care Subsidy (CCS) Calculator — Australia 2026-27
Working out the real cost of childcare after subsidies.
Find your Child Care Subsidy rate and weekly subsidy amount. Select your family type (couple, single, or single parent on PPS) and enter your income to see your exact CCS percentage for 2026-27, the dollar subsidy on your provider's fee, and the full rate curve from $0 to $530,000. Estimates only — verify your exact rate at myGov.
⚠️ Estimates only. CCS uses your individual income (singles) or combined income (couples/de facto). Rates are indexed annually. Verify at myGov. Verify at myGov.
Child Care Subsidy rates by combined family income 2026-27
Income-tested sliding scale
The Child Care Subsidy (CCS) is means-tested on combined adjusted taxable income (ATI) of both parents. Services Australia applies a sliding scale that starts at a maximum 90% subsidy for low-income families and tapers to zero above roughly $538,500. From July 2023, the 'Cheaper Child Care' reform lifted the maximum from 85% to 90% and extended the taper. The income thresholds are indexed to CPI each July.
| Combined family income | CCS rate |
|---|---|
| Up to $88,520 | 90% |
| $88,521 – $538,520 | Tapers 1% for every $5,000 above $88,520 |
| $188,520 | 70% |
| $288,520 | 50% |
| $388,520 | 30% |
| $488,520 | 10% |
| $538,520 or more | 0% |
How the payment reaches you
CCS is paid directly to your approved childcare provider, who reduces the fee at the point of invoice — you only pay the gap. Published rates and the official taper tables are maintained on the Services Australia website. You must lodge a tax return each year for reconciliation; if you (or your partner) don't, CCS is cancelled and a debt raised.
The CCS Activity Test: how hours of subsidised care are calculated
Four tiers of subsidised hours
The hours of CCS you can claim per fortnight depend on the lower-activity parent's recognised activity. Services Australia sets four tiers; if both parents' activity levels differ, the lower figure applies to the whole family. Families earning $88,520 or less automatically receive 36 hours per fortnight regardless of activity, under the 2023 safety-net rule.
| Hours of activity per fortnight | Subsidised hours per fortnight |
|---|---|
| Under 8 hours | 0 hours (36 if income ≤ $88,520) |
| 8–16 hours | 36 hours |
| Over 16–48 hours | 72 hours |
| Over 48 hours | 100 hours |
What counts as activity
Qualifying activities include paid work (including self-employment and travel time to work), approved study or training, volunteering, actively looking for work, setting up a business, or caring for someone with a disability. Paid and unpaid parental leave counts. Exemptions apply for Aboriginal and Torres Strait Islander children (100 hours regardless), families experiencing temporary financial hardship, and grandparent carers on income support (100 hours).
Higher CCS rate for families with 2+ children under 5
The 30-percentage-point boost
Since March 2022 families with two or more children aged 5 or under in care receive a higher CCS rate for their second and subsequent children. The boost is 30 percentage points on top of the standard rate, capped at 95%. The eldest child receives the standard CCS rate; the younger children receive the higher rate. This typically saves eligible families thousands per year.
The $370,727 cap
The higher rate is only available while combined family income is below $370,727 (2026-27 figure, indexed July). Above that threshold, all children receive the standard income-tested rate. Twins or children born less than 12 months apart both qualify as 'younger children' against a hypothetical older sibling. When the eldest child turns 6, the next-eldest under 5 becomes the 'standard rate' child — triggering a rate change you should expect.
| Combined income | Standard rate | Higher rate (younger kids) |
|---|---|---|
| $60,000 | 90% | 95% (capped) |
| $130,000 | 81.7% | 95% (capped) |
| $200,000 | 67.7% | 95% (capped) |
| $300,000 | 47.7% | 77.7% |
| $370,727+ | 34.1% | No higher rate |
CCS hourly rate caps by care type 2026-27
The subsidy only applies up to the cap
CCS is calculated on the lower of your actual hourly fee or the hourly rate cap set for your service type. If your centre charges above the cap, you pay 100% of the excess. The caps are indexed on 1 July each year in line with CPI. The table below uses the 2026-27 caps published by the Department of Education (the policy department) and Services Australia (the paying agency).
| Care type | 2026-27 hourly cap | Typical daily fee |
|---|---|---|
| Centre Based Day Care (CBDC) | $15.19 | $120–$200 |
| Family Day Care (FDC) | $14.08 | $95–$130 |
| Outside School Hours Care (OSHC) | $13.30 | $40–$75 session |
| In-Home Care | $41.31 | Per family, not per child |
The gap fee you actually pay
Example: a Sydney CBDC charges $170/day for a 10-hour session — $17/hour, which is above the $15.19 cap. CCS at 70% applies to the $15.19 capped rate ($10.63/hour subsidy), leaving a $6.37/hour gap. Your daily out-of-pocket is $63.70 — significantly higher than the 30% of $170 you might expect. Ask providers whether their fee is under the cap before enrolment.
What reduces your Child Care Subsidy
The 5% withholding buffer
Services Australia withholds 5% of your entitlement by default to cover any over-payment at reconciliation. The withheld amount is released after you lodge your tax return and actual ATI is confirmed. You can reduce withholding to 0%, but if your estimated income underestimates actual income, you will owe a debt. For incomes near a taper step, keeping the 5% buffer is prudent.
Reconciliation is on taxable income, not estimate
CCS is paid fortnightly on your estimate, then reconciled against combined adjusted taxable income (ATI) from your tax return. ATI includes taxable income plus reportable fringe benefits, reportable super contributions, tax-free pensions, net investment losses, and certain foreign income. Salary sacrifice to super can lift your ATI higher than your take-home might suggest.
Absences and immunisation
You get 42 allowable absence days per child per financial year — weekends and public holidays when you would normally have attended included. Beyond 42, CCS stops unless exceptional-circumstance rules apply (illness, court order). Immunisation is a condition of CCS under the 'No Jab, No Pay' rules — children must be up-to-date on the National Immunisation Program schedule.
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: 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 CCS rate is the percentage of the capped childcare fee the government will pay on your behalf. It is applied directly by your provider — you only pay the difference. Switch to Standard mode to see the rate curve chart showing how your rate changes across the full income range.
The CCS rate curve shows how your rate changes across all income levels from $0 to $530,000. Your current income is marked as a blue dot on the curve. This makes it easy to see: how much your rate would change with a small income increase or decrease; where the $80,000 flat maximum zone ends; and where the annual cap threshold ($190,000) sits.
Your CCS rate is a useful percentage, but the actual dollar subsidy depends on your provider's fee, the hourly rate cap ($10.92/hr for CBDC), and your days of care. Enter your daily fee and days below the income field to see the exact weekly and annual subsidy in dollars — not just a percentage. The gap fee warning also appears if your provider charges above the cap.
If your combined income is $190,000 or above, your total CCS per child is capped at $10,655 per financial year. Once this cap is reached, you pay full fees for the rest of the year. Switch to Detailed mode to add your weeks of care and see whether the annual cap is likely to be reached given your usage pattern.
Understanding how the rate converts to dollars requires knowing your provider fee and the hourly rate cap.
Your CCS rate is applied to the lower of: your provider's daily fee, or the hourly rate cap ($10.92/hr × 8hrs = $87.36/day for CBDC). If your centre charges $130/day, the capped portion is $87.36 and the gap fee is $42.64. At 84% CCS: subsidy = 84% × $87.36 = $73.38/day. Your cost = $42.64 gap + $13.98 (16% of cap) = $56.62/day.
At a $155/day provider with 84% CCS: subsidy = $73.38/day (same as $130/day centre). But you also pay $67.64 gap fee. Total cost = $73.38 + $67.64 = $141.02/day wait — that is $141 vs $56.62 for same CCS rate. Choosing a lower-fee provider maximises the real-world value of your CCS rate.
Household income $120,000 (78% CCS). Centre-based day care at $130/day, 3 days/week, 50 weeks. Daily cap: $87.36. Daily subsidy: 78% × $87.36 = $68.14. Weekly subsidy: $68.14 × 3 = $204.42. Annual subsidy: $204.42 × 50 = $10,221. Your annual cost: ($130 × 3 × 50) − $10,221 = $19,500 − $10,221 = $9,279/yr. Annual cap ($10,655) not reached — no restriction. Gap fee ($42.64 × 3 × 50 = $6,396) is included in your $9,279 cost.
There are legitimate, legal ways to increase your CCS rate — primarily by reducing your adjusted taxable income.
Pre-tax super contributions reduce your adjusted taxable income, which increases your CCS rate. Every $10,000 in salary sacrifice on a $100,000 income moves the rate from ~84% toward ~87%. At 3 days/week: each percentage point of CCS = approximately $131/yr in extra subsidy. Salary sacrifice to super is also tax-effective in its own right — a double benefit.
CCS is based on combined income. If one partner works reduced hours, takes parental leave, or returns to study, the combined income falls — potentially moving you to a higher rate bracket. A partner earning $25,000 less could increase CCS by 5–10 percentage points, worth $650–$1,300/yr in additional subsidy at typical childcare usage rates.
If your income estimate with Centrelink is higher than your actual income, you are receiving less CCS than you are entitled to — and will receive an arrears payment after reconciliation. Update your income estimate in myGov as soon as you know your income will be lower (parental leave, reduced hours, business downturn). The higher rate applies from the date of the update.
This calculator provides an estimate. Your legally binding CCS rate is set by Services Australia based on your actual income estimate lodged with Centrelink.
Log in to myGov at my.gov.au → Link to Centrelink if not already linked → Select Child Care Subsidy → View CCS Determination. This page shows your current CCS rate, activity test result, and annual cap status. If the rate shown differs significantly from this calculator, check that your income estimate and partner income are correctly entered in Centrelink.
Your childcare provider invoices show the CCS credit applied to your account each week or fortnight. The CCS credit should match: your rate × min(daily fee, cap) × days subsidised. If the CCS credit is different from what this calculator estimates, first check your actual CCS determination in myGov — then contact Services Australia if there is a discrepancy.
After 30 June each year, Services Australia reconciles your CCS based on your actual lodged income vs your estimate. If you under-estimated income (received too much CCS), you will have a debt. If you over-estimated (received too little CCS), you will get a top-up payment. The reconciliation typically completes 3–6 months after financial year end. Update your income estimate promptly to minimise large reconciliation adjustments.