Child Care Subsidy Calculator 2026-27 — Your CCS % and Gap Fee
In 2026-27 families earning up to $88,520 get 90% Child Care Subsidy; it falls 1 percentage point for every $5,000 of combined family income and ends at $538,520. A second or younger child aged 5 or under gets up to 95% while family income is under $370,727. Since 5 January 2026 every family gets at least 72 subsidised hours per child a fortnight.
Enter both parents' pay and your centre's fees to see your CCS percentage, the subsidy paid to your centre and your gap fee.
Child Care Subsidy Calculator
Estimate on the 2026-27 rates. The eldest child aged 5 or under is the standard-rate child; younger ones get the higher rate. Children 6 or older use the school-age cap. Not modelled: Additional Child Care Subsidy, absences, shared care, In Home Care per-family rules beyond the cap. The government's Starting Blocks CCS calculator gives the official estimate.
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CCS Rates 2026-27 by Family Income
| Family income | Standard CCS (eldest child, and all children 6+) |
|---|---|
| $0 to $88,520 | 90% |
| More than $88,520 to below $538,520 | Down 1% for every $5,000 above $88,520 |
| $538,520 or more | 0% |
| Family income | Higher CCS (second and younger children aged 5 or under) |
|---|---|
| $0 to $146,437 | 95% |
| More than $146,437 to below $191,437 | Down 1% for every $3,000, from 95% to 80% |
| $191,437 to below $270,727 | 80% |
| $270,727 to below $360,727 | Down 1% for every $3,000, from 80% to 50% |
| $360,727 to below $370,727 | 50% |
| $370,727 or more | No higher rate — every child gets the standard rate |
| Family income | Standard CCS | Higher-rate child |
|---|---|---|
| $80,000 | 90.00% | 95.00% |
| $100,000 | 87.70% | 95.00% |
| $120,000 | 83.70% | 95.00% |
| $150,000 | 77.70% | 93.81% |
| $180,000 | 71.70% | 83.81% |
| $200,000 | 67.70% | 80.00% |
| $250,000 | 57.70% | 80.00% |
| $300,000 | 47.70% | 70.24% |
| $350,000 | 37.70% | 53.58% |
| $400,000 | 27.70% | standard rate |
| $500,000 | 7.70% | standard rate |
Hourly Rate Caps 2026-27
Your CCS percentage applies to the lower of your hourly fee and the cap. If your centre charges a daily session, the hourly fee is the daily fee divided by the session length — not the hours your child actually attends.
| Care type | Below school age | School age |
|---|---|---|
| Centre Based Day Care (long day care) | $15.19 | $13.30 |
| Family Day Care | $14.08 | $14.08 |
| Outside School Hours Care | $15.19 | $13.30 |
| In Home Care (per family) | $41.31 | $41.31 |
The 3 Day Guarantee: Hours of Subsidised Care
The CCS activity test was replaced on 5 January 2026. Every eligible family now gets at least 72 hours of subsidised care per child each fortnight — about three 12-hour days a week — however many hours the parents work.
| Your circumstances | Subsidised hours a fortnight, per child |
|---|---|
| 48 hours or less of recognised participation a fortnight | 72 |
| More than 48 hours of recognised participation (both parents); a valid exemption; an Aboriginal or Torres Strait Islander child | 100 |
For a couple, the parent with the lower participation sets the hours. If volunteering or looking for work is your only recognised participation, only the first 16 hours count. Hours above your entitlement are charged at the full fee.
How Your Pay Changes Your CCS
CCS is means-tested on your family's combined adjusted taxable income for the financial year — both parents' wages, overtime and bonuses, plus reportable fringe benefits and reportable super contributions. Between $88,520 and $538,520, every extra $5,000 the family earns takes 1 percentage point off the standard subsidy. On $100 of capped fees a day, that is about $1 a day per child for each $5,000 of extra income.
Because CCS is paid on an estimate, a mid-year pay rise should go into your family income estimate straight away; otherwise the difference comes back as a debt when your CCS is balanced after the financial year. Check what a raise adds after tax on the pay rise calculator, and your household's take-home on the take-home pay calculator.
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How this calculator works▼
- Standard CCS % = 90 − (family income − $88,520) ÷ $5,000, between 90% and 0%, shown to 2 decimal places. This reproduces all five of Services Australia's standard-rate worked examples exactly (our tests assert them).
- Higher CCS % follows the published 2026-27 table. One of Services Australia's worked examples (twins on $182,300) gives the younger twin 81.99%, which does not follow from that table (83.05%); we follow the table, which the Department of Education publishes too.
- Subsidy per hour = CCS % × the lower of the hourly fee (daily fee ÷ session hours) and the cap, rounded to the cent; paid for the session hours charged up to 72 or 100 hours a fortnight; 5% withheld.
- Read at Services Australia and the Department of Education on 24 September 2026. Pay Calculator Australia is not Services Australia.
Frequently Asked Questions
Child Care Subsidy questions and answers
How much Child Care Subsidy will I get in 2026-27?
Families earning up to $88,520 get 90% of the lower of their hourly fee and the hourly rate cap. Above that the percentage falls by 1 point for every $5,000 of family income, reaching 0% at $538,520. On $130,000 the subsidy is 81.70%.
What is the 3 Day Guarantee?
From 5 January 2026 the CCS activity test was replaced. Every eligible family gets at least 72 hours of subsidised care per child each fortnight — about three days a week — whatever their work hours. You get 100 hours if you and your partner each do more than 48 hours of recognised participation a fortnight (paid work, looking for work, volunteering and the other recognised types), have an exemption, or for an Aboriginal or Torres Strait Islander child.
What are the CCS hourly rate caps for 2026-27?
For children below school age: $15.19 an hour for centre-based day care and outside school hours care, $14.08 for family day care and $41.31 per family for in home care. For school-age children the centre-based and OSHC cap is $13.30. Your percentage applies to the lower of your fee and the cap, so fees above the cap are paid in full by you.
Do I get a higher CCS for a second child?
Yes, if you have more than one child aged 5 or under in care and family income is under $370,727. The eldest is the standard-rate child; each younger one gets the higher rate: 95% up to $146,437, falling to 80% by $191,437, then to 50% by $360,727. On $130,000 that is 95% for the younger child.
What family income does Centrelink use for CCS?
Your family income estimate for the financial year: combined adjusted taxable income of you and your partner — taxable income (wages, overtime, bonuses, business and investment income) plus reportable fringe benefits, reportable super contributions, net investment losses and some tax-free pensions. At the end of the year Services Australia balances your CCS against your actual income.
Why is 5% of my CCS withheld?
Services Australia withholds 5% of your subsidy each fortnight to reduce the chance of a debt if your income ends up higher than your estimate. The withheld amount is paid to you when your CCS is balanced after the financial year if you were not overpaid. You can change the percentage online twice a financial year.
Families earning up to $88,520 get 90% of the lower of their hourly fee and the hourly rate cap. Above that the percentage falls by 1 point for every $5,000 of family income, reaching 0% at $538,520. On $130,000 the subsidy is 81.70%.
From 5 January 2026 the CCS activity test was replaced. Every eligible family gets at least 72 hours of subsidised care per child each fortnight — about three days a week — whatever their work hours. You get 100 hours if you and your partner each do more than 48 hours of recognised participation a fortnight (paid work, looking for work, volunteering and the other recognised types), have an exemption, or for an Aboriginal or Torres Strait Islander child.
For children below school age: $15.19 an hour for centre-based day care and outside school hours care, $14.08 for family day care and $41.31 per family for in home care. For school-age children the centre-based and OSHC cap is $13.30. Your percentage applies to the lower of your fee and the cap, so fees above the cap are paid in full by you.
Yes, if you have more than one child aged 5 or under in care and family income is under $370,727. The eldest is the standard-rate child; each younger one gets the higher rate: 95% up to $146,437, falling to 80% by $191,437, then to 50% by $360,727. On $130,000 that is 95% for the younger child.
Your family income estimate for the financial year: combined adjusted taxable income of you and your partner — taxable income (wages, overtime, bonuses, business and investment income) plus reportable fringe benefits, reportable super contributions, net investment losses and some tax-free pensions. At the end of the year Services Australia balances your CCS against your actual income.
Services Australia withholds 5% of your subsidy each fortnight to reduce the chance of a debt if your income ends up higher than your estimate. The withheld amount is paid to you when your CCS is balanced after the financial year if you were not overpaid. You can change the percentage online twice a financial year.
Sources & References
- 1Your income can affect Child Care Subsidy— Services Australia
- 2Your number of children in care can affect it (higher rate)— Services Australia
- 3The type of child care you use affects it (hourly rate caps)— Services Australia
- 4Recognised participation and activity test— Services Australia
- 5Examples to help you understand your Child Care Subsidy— Services Australia
- 6Child Care Subsidy (CCS rates 2026-27, hourly rate caps, 3 Day Guarantee)— Department of Education
Last verified: 24 September 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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