Child Care Subsidy (CCS)

The Child Care Subsidy (CCS) is financial assistance provided by the Australian Government to help eligible families manage the cost of approved childcare. The subsidy is paid directly to your childcare provider, reducing the fees you need to pay.

The amount of support available varies between families and is generally influenced by your household income, the type of care you use, your child’s circumstances and the number of children you have attending care.

What is the Child Care Subsidy (CCS)?

The CCS helps make approved early learning and childcare more affordable for eligible families. Rather than receiving the payment directly, the subsidy is generally paid to your childcare provider and deducted from your fees.

Your individual CCS rate is determined by Services Australia based on your circumstances.

Who can receive the CCS?

You may be able to receive CCS if you:

• Have a child aged 13 or under who is not attending secondary school, unless an exemption applies.
• Use an approved childcare service.
• Are responsible for paying the childcare fees.
• Meet the Australian residency requirements.
• Meet the relevant immunisation requirements.

You don’t necessarily need to be working to receive CCS. The current system provides subsidised care based on eligibility and circumstances, with additional hours available to some families.

Eligibility and entitlement

There are two important aspects to CCS: whether you qualify for the subsidy and how much subsidy you are entitled to receive.

Your CCS percentage is primarily determined by your family’s estimated annual income. Other factors, including your childcare arrangements and the number of children in your family who are in care, can also affect your entitlement.

For the 2026–27 financial year, the standard CCS rate can be as high as 90% for families with an income of $88,520 or less, gradually reducing as household income increases. Families with an income of $538,520 or more generally receive a 0% standard CCS rate.

Some families with multiple children aged 5 or under in care may qualify for a higher subsidy rate.

The subsidy is generally calculated against the lower of your actual childcare fee or the applicable government hourly rate cap. This means you may still have a portion of your childcare fees to pay.

3 Day Guarantee

Since 5 January 2026, the 3 Day Guarantee has made at least 72 hours of subsidised care available each fortnight to all families who meet the CCS eligibility requirements.

This is equivalent to 3 days of care per week, regardless of how much recognised work, study or other activity parents undertake.

Some families may be able to access up to 100 hours of subsidised care per fortnight. This can include families who meet certain participation requirements, have an approved exemption, or have an Aboriginal or Torres Strait Islander child.

The number of subsidised hours is calculated separately for each child, and your individual entitlement will depend on your circumstances.

CCS Calculations

The amount of CCS you receive is based on several factors.

Family income

Your estimated annual adjusted taxable income is one of the main factors used to determine your CCS percentage.

Childcare fees

The subsidy is calculated using the lower amount between the fee charged by your childcare service and the applicable government hourly rate cap.

Number of children in care

Families with multiple children aged 5 or under attending approved childcare may qualify for a higher CCS rate for one or more children.

Subsidised hours

The 3 Day Guarantee provides eligible families with at least 72 hours of subsidised care per fortnight, while some families may qualify for up to 100 hours.

Estimate your CCS

Every family’s circumstances are different, so the easiest way to get an indication of your potential subsidy is to use the Child Care Subsidy Calculator available through the Australian Government website, StartingBlocks.gov.au.

 

Calculate your estimated CCS

 

For official information about eligibility, rates and how to apply, visit Services Australia – Child Care Subsidy

Please note: Little Sparkles ELC does not determine CCS eligibility or payment amounts. These are assessed by Services Australia, and the information above is general guidance only. Your actual subsidy may differ depending on your individual circumstances.