What is the CCS activity test and how does it determine subsidized hours?

The activity test measures your fortnightly hours of approved activity (such as paid work, self-employment, active study, volunteering, or job seeking). The parent with the lower activity hours determines the maximum subsidized childcare hours for the family: ranging from 0 hours (with exemptions) up to 100 hours per fortnight.

How does the multi-child subsidy work for families with two or more kids in care?

For families with multiple children aged 5 or under in care, Centrelink applies a 'higher child care subsidy' rate of up to an additional 30% (capped at a maximum of 95%) for your second and subsequent children. The child with the highest standard rate of subsidy is always designated as the 'first' child and receives standard rates.

What are the CCS income thresholds for 2026-27 in Australia?

For the 2026-27 financial year, families earning up to $88,520 receive the maximum 90% subsidy rate. For families earning between $88,520 and $538,520, the subsidy rate tapers down by 1% for every $5,000 of income, reaching 0% at $538,520 or more.

What are the hourly rate caps in 2026-27?

The 2026-27 hourly rate caps are: Centre Based Day Care and Outside School Hours Care (OSHC) is $15.19 for kids below school age and $13.30 for school-age children; Family Day Care is $14.08; and In Home Care is $41.31 per family.

What are the CCS income thresholds for 2026-27 in Australia?

For the 2026-27 financial year, families earning up to $88,520 receive the maximum 90% subsidy rate. For families earning between $88,520 and $538,520, the subsidy rate tapers down by 1% for every $5,000 of income, reaching 0% at $538,520 or more.

What are the hourly rate caps in 2026-27?

The 2026-27 hourly rate caps are: Centre Based Day Care and Outside School Hours Care (OSHC) is $15.19 for kids below school age and $13.30 for school-age children; Family Day Care is $14.08; and In Home Care is $41.31 per family.

Child Care Subsidy

The Child Care Subsidy (CCS) is a financial payment from the Australian Government. The amount depends on family income, participation activity, and the type of care used.

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Your Family

Relationship Status

Annual Family Income

Based on combined 2026-27 taxable income estimates.

Participation Activity (Fortnightly)

You

Special Circumstances?

ACCS, Foster carers, or approved exemptions.

Est. Government Contribution

$727.24

Net paid to child care provider (95%)

Total Child Care Fees:$1,323.00

Calculated Subsidy (100%):$765.52

Services Australia Withholding (5%):-$38.28

Out-of-Pocket Gap (Paid by You)

$595.76

Includes the 5% withheld amount. If you haven't been overpaid, this withholding is refunded after end-of-year tax balancing.

Child 1Standard Rate

90%

groupsChildren Details

Child's Age

Type of Care

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Daily Fee ($)

Hours per Day

Days per Fortnight7 days (56h)

1 day14 days

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Note on 2026–27 Policy: Since January 2026, the 3-Day Guarantee ensures that all eligible families can access at least 72 hours of subsidised care per fortnight (equivalent to 3 days/week) regardless of activity test results.

Hourly rate caps and income thresholds have been updated in accordance with the confirmed 2026–27 Child Care Subsidy rates. Below is the updated reference table of hourly caps used by this calculator:

Care Type	Below School Age (≤ 5)	School Age (> 5)
Centre Based Care	$15.19	$13.30
Outside School Hours Care	$15.19	$13.30
Family Day Care	$14.08	$14.08
In Home Care (per family)	$41.31	$41.31

For complete guidelines, refer directly to the official Australian Department of Education Child Care Subsidy Guide.

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Why does Services Australia withhold 5% of your CCS?

Understanding the end-of-year balancing process

Services Australia keeps 5% of your Child Care Subsidy (CCS) during the year.

They do this to reduce the chance of overpayment. This amount can help cover any debt when your payments are balanced at the end of the financial year.

If you haven’t been overpaid, this money is returned to you.

At balancing (End of Financial Year)

At balancing, Services Australia checks your actual income for the year. You may:

get a top up if you were underpaid
owe money if you were overpaid
see no change if you received the correct amount.

You can change how much CCS is withheld through Services Australia. This calculator displays the standard 5% withholding amount. Your actual weekly and fortnightly withholding amount may be higher or lower if you have changed the amount through Services Australia.

Family Financial Planning

Integrate Childcare Out-of-Pocket Into Your Total Baby Budget

Childcare gap fees are often a family's largest ongoing monthly expense. Model your net childcare fees alongside upfront nursery furniture, prams, car seats, and monthly nappies in our Australian Baby Budget Calculator.

Calculate Baby Budgetarrow_forward

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Calculation Methodology & Limitations

Version 2026.6.1 • Last Audit: June 2026

Approved July 2026 RatesServices Australia Audited

Eligibility & Income Taper Method

This calculator applies the 2026–27 Australian Government rules for the Child Care Subsidy (CCS). Standard parent rates start at 90% for families with a combined annual income of $88,520 or less, tapering down by 1% for every $5,000 of income thereafter, reaching 0% for combined family incomes of $538,520 or more.

Multiple Children Taper Rules

For families with multiple children aged 5 or under in care, a higher rate of subsidy applies to second and younger children. The rate starts at 95% for family incomes up to $146,437, decreases by 1% for every $3,000 of income until it reaches 80% at $191,437, drops to 50% for incomes between $270,727 and $360,727, and transitions back to standard rates above $370,727.

Limitations & Disclaimer: This tool acts as an illustrative decision aid and should not be treated as professional financial or legal advice. Calculated amounts are estimates and may vary slightly based on final assessments, fortnightly variations in hourly care rates, and other circumstance determinations processed by Services Australia. Check the official Australian government guidelines before making enrollment decisions.