Child Care Subsidy Calculator AU 2025-26

What this calculator works out

Child Care Subsidy (CCS) is the main fortnightly subsidy that the Australian Government pays directly to your approved early childhood education and care provider. It reduces your fees up-front so you only pay the gap. From 5 January 2026 the activity test is replaced by the 3-Day Guarantee, meaning eligible families receive at least 72 hours of subsidised care per fortnight regardless of how much paid work or study each parent is doing.

This calculator applies the FY 2025-26 settings published by Services Australia and the Department of Education:

• the 90% maximum rate at or below $83,280 of family adjusted taxable income,
• a 1 percentage point reduction for each additional $3,000 of family income, dropping to 0% at $533,280,
• the hourly rate cap by care type ($14.63 centre-based, $13.55 family day care, $12.81 OSHC, $39.81 in-home),
• the higher CCS for second-or-later children aged 5 and under (+30 percentage points, capped at 95%),
• the 3-Day Guarantee floor of 72 hours per fortnight,
• the high-income annual cap of $10,896 per child where family income is above $362,408.

The figure is a general estimate — actual subsidy is reconciled at the end of the financial year by Services Australia.

The formula and where the rates come from

// Standard CCS rate
if familyATI ≤ $83,280              → rate = 90%
if $83,280 < familyATI < $533,280   → rate = 0.90 - floor((familyATI - 83280) / 3000) × 0.01
if familyATI ≥ $533,280             → rate = 0%

// Higher CCS for 2nd+ child under 5
if higherCcsChild → applied = min(0.95, rate + 0.30)

// Hourly rate caps (FY 2025-26)
centre-based   $14.63
FDC            $13.55
OSHC           $12.81
IHC            $39.81

// Subsidy per hour
subsidisableFee = min(actualHourlyFee, capForType)
subsidyPerHour  = subsidisableFee × applied
gapPerHour      = actualHourlyFee - subsidyPerHour

// 3-Day Guarantee (from 5 Jan 2026)
effectiveHours = max(usedHours, 72) per fortnight

// Annual high-income cap
if familyATI > $362,408 → annualSubsidy capped at $10,896 / child / year

The CCS rate is set under the A New Tax System (Family Assistance) Act 1999 and detailed in the Services Australia "How much" page. Hourly rate caps are made under the Child Care Subsidy Minister's Rules 2017 and indexed each 1 July.

How to read the inputs

• Combined family adjusted taxable income (ATI) — for couples this is the sum of both partners' ATI. ATI includes salary sacrifice super, reportable fringe benefits, foreign income and net rental losses. Don't enter just gross salary.
• Type of care — different rate caps apply. OSHC is the lowest; in-home care is highest because it covers shift workers and remote families and uses higher per-hour costs.
• Provider hourly fee — what your provider actually charges per hour. If it is above the rate cap, the gap above the cap is paid by you in full and CCS is calculated only on the cap.
• Hours of care per fortnight — typical full-time use is around 100 hours. The 3-Day Guarantee floor is 72 hours.
• Higher CCS toggle — tick this for the second-or-later child aged 5 or under. Services Australia identifies which child is the "second" — usually the younger child — and applies the bonus only to them, not to the eldest.
• 3-Day Guarantee — leave on for sessions on or after 5 January 2026. Untick to model the old activity test for the period before then.

Worked examples

1. Typical low-income family, one child, full-time centre. Family ATI $70,000, centre-based, $14/hr fee, 80 hours/fortnight. Rate = 90% → subsidy/hr = min(14, 14.63) × 0.90 = $12.60. Gap = $1.40/hr. Annual subsidy = 80 × 26 × $12.60 = ~$26,208. Annual gap = ~$2,912.

2. Middle-income family, 60% rate. Family ATI $173,280, centre-based, $14.63/hr, 100 hours/fortnight. Increments above $83,280 = 30 → rate = 60%. Subsidy/hr = $14.63 × 0.60 = $8.78. Annual subsidy ≈ 100 × 26 × $8.78 = $22,820. Annual fees $14.63 × 100 × 26 = $38,038, so gap ≈ $15,218.

3. Second child under 5, higher CCS. Same family as Example 2 but with a second child aged 3. For that child: applied rate = min(0.95, 0.60 + 0.30) = 90%. Subsidy/hr = $14.63 × 0.90 = $13.17. Annual subsidy for second child ≈ $34,239. The eldest stays at 60%.

4. 3-Day Guarantee for a low-activity family. Family ATI $60,000, centre-based, $14/hr, but only 30 hours/fortnight of actual care booked. Under the old activity test, low-activity families could be capped at 36 hours/fortnight. Under the 3-Day Guarantee from 5 Jan 2026, they receive subsidy on at least 72 hours/fortnight if they choose to use them. Subsidy at 72 hours: 72 × 26 × ($14 × 0.90) = ~$23,587.

5. Provider above the cap. Family ATI $90,000, centre-based, $20/hr fee (above $14.63 cap), 80 hrs/fortnight. Rate = ~88%. Subsidy/hr = $14.63 × 0.88 = $12.87. Gap/hr = $20 - $12.87 = $7.13. Annual gap = 80 × 26 × $7.13 = ~$14,830. Worth checking whether a provider closer to the rate cap is available locally.

6. High-income family, annual cap territory. Family ATI $370,000, centre-based, $14.63/hr, 100 hrs/fortnight. Standard rate is mathematically very low at this income. The $10,896 / child / year cap is flagged but the subsidy is also small at this income level — check the calculator output for the binding number.

Common pitfalls

• Forget the rate cap. A provider charging well above the cap (common in inner-city Sydney / Melbourne) silently inflates the gap fee. The subsidy never grows above the cap regardless of what the provider charges.
• Activity test is gone (mostly). From 5 January 2026 the 3-Day Guarantee replaces the old activity test for most families. The calculator includes a toggle so you can compare. Once the change is bedded in, leave it on.
• Combined family income, not yours alone. For couples, both partners' ATI is added together. Salary sacrifice super counts as RESC and lifts ATI.
• Higher CCS only for the second-or-later child under 5. The bonus does not apply to the eldest child even when there are multiple children in care. It also stops once the eldest in the bracket turns 6 or stops care.
• Annual cap is per-child for high-income families. The $10,896 cap applies to each child individually, not the family as a whole.
• Reconciliation can claw back overpayments. Centrelink withholds 5% by default to soften end-of-year reconciliation. If you under-estimate income at the start, you may owe money in October when ATO data arrives.
• CCS is paid to the provider, not the family. You see only the gap fee on your statement. Use the Services Australia statement of CCS in myGov to see what was paid on your behalf.
• Approved providers only. CCS does not apply to nannies, babysitters or playgroups that are not registered as approved early childhood services.

Related calculators

• Family Tax Benefit Calculator (AU) — main per-child Centrelink top-up.
• Parental Leave Pay Calculator (AU) — government paid parental leave.
• Commonwealth Rent Assistance Calculator — extra payment for renting families.
• JobSeeker Payment Calculator — when one parent is between jobs.
• Salary Sacrifice Super Calculator — affects family ATI used in the CCS test.

Sources:

• Services Australia — How much CCS you can get
• Services Australia — Activity level and subsidised hours (transitional)
• Services Australia — Child care subsidy changes (3-Day Guarantee from 5 Jan 2026)
• Department of Education — CCS hourly rate cap
• A New Tax System (Family Assistance) Act 1999