Child Care Subsidy.

The Child Care Subsidy (CCS) is a payment from Services Australia that helps with the cost of approved childcare. Most Australian families with a child in care receive some level of subsidy. Here's how it works in 2026-27 across our 4 centres.

How the subsidy is calculated

CCS is a percentage of your fees, paid by the government directly to the centre. Three things determine your percentage:

• Combined family income - the lower your household income, the higher your percentage
• Activity test - the hours of recognised activity (work, study, training, volunteering) the parents do per fortnight
• Type of care - centre based day care has its own hourly rate cap

The income thresholds (2026-27)

• Family income below $88,520: 90% subsidy
• For each $5,000 above, the percentage drops by 1 percentage point
• Subsidy reaches 0% at family income of $538,520

The thresholds are reviewed each year and indexed. Your assessment is based on your combined family income for the year.

The hourly rate cap

The subsidy applies to the lower of your centre's hourly fee or the government's hourly rate cap. For 2026-27, the cap for centre based day care under school age is $15.19 per hour. Read more on how the cap works.

The 3-Day Guarantee from January 2026

From 5 January 2026, CCS-eligible families can get at least 72 hours of subsidised care per fortnight, regardless of work or study activity. That's about three days a week for most families. Some families can still access up to 100 hours per fortnight. The subsidy does not guarantee a place at a service, and most families still pay a gap fee.

The higher rate for second and subsequent children

If you have a second child aged 5 or under in approved care and your family income is under $370,727, the second (and any subsequent) child gets a higher subsidy rate. The higher rate uses its own income test, separate from the standard rate. For 2026-27:

• Up to $146,437: 95% subsidy
• $146,437 to $191,437: tapers from 95% to 80% (1% per $3,000)
• $191,437 to $270,727: 80% (flat)
• $270,727 to $360,727: tapers from 80% to 50% (1% per $3,000)
• $360,727 to $370,727: 50% (flat)
• Above $370,727: standard rate applies (no higher rate)

This was introduced in March 2022 to help families with multiple young children in care.

The 5% withholding

Centrelink withholds 5% of your CCS payments through the year as a buffer against end-of-year reconciliation. If your income estimate is accurate, the withheld amount is paid back at tax time. You can adjust the withholding rate in your myGov account.

How to claim CCS

1. Sign up for a myGov account if you don't already have one
2. Link your Centrelink to myGov
3. Apply for the Child Care Subsidy through the Centrelink section
4. You'll receive a CRN (customer reference number) for yourself and one for your child
5. Provide both CRNs to your centre at enrolment
6. Your centre lodges fortnightly attendance through their software, and Services Australia pays the subsidy directly to the centre

Estimate your gap fee

The CCS gap-fee calculator estimates what you'd pay out of pocket at each of our centres after subsidy, based on your income and days per week.

Once your child starts

You'll see CCS deducted automatically from your weekly invoice. The headline daily rate (e.g., $164 in our Emu Room at Normanhurst) is reduced by the percentage you're entitled to, so you only pay the gap fee. You don't need to claim back from Centrelink yourself.