The Child Care Subsidy (CCS) is an Australian Government payment that lowers the cost of approved child care, including long day care and kindy at Kaleidoscope Kids. For 2026-27, families earning up to $88,520 get 90% of the fee subsidised up to the hourly cap, every eligible family gets at least 72 subsidised hours a fortnight, and you claim through myGov. Use our CCS calculator to estimate your gap fee.
This guide brings together who can get CCS, how much it pays, how the 3 Day Guarantee works and how to apply step by step. Figures are from the Department of Education and Services Australia and apply from 6 July 2026.
What is the Child Care Subsidy?
CCS is paid by the government straight to your child care service, which takes it off your invoice. You pay the rest, called the gap fee. How much CCS you get depends on your family income, how many children you have in care, their ages, your recognised activity and the type of care.
Who is eligible for the Child Care Subsidy?
You can usually get CCS if you, as the parent or carer:
care for the child at least 2 nights a fortnight (or have at least 14% of care)
are responsible for paying the fees at an approved service, such as a Kaleidoscope Kids centre
meet the residency rules
and your child:
meets the immunisation requirements, or is on an approved catch up schedule
is 13 or under and not at secondary school (some exceptions apply)
A child needs to attend care at least once in any 26 weeks in a row to stay eligible.
How much Child Care Subsidy will I get in 2026-27?
Your CCS percentage is set by your combined family income estimate for the financial year:
Up to $88,520: 90%
Over $88,520: the rate drops by 1% for every $5,000 of extra income
$538,520 or more: 0%, so no CCS
Families with more than one child aged 5 or under in care can get a higher rate for the second and younger children: 95% for family income up to $146,437, tapering to 80% and then 50%, with the higher rate ending at $370,727. Our guide to what income qualifies for the Child Care Subsidy shows the full income bands.
The hourly rate cap
Your percentage applies to your service's hourly fee or the government hourly rate cap, whichever is lower. For centre based day care in 2026-27 the cap is $15.19 an hour for children below school age. If a centre charges more than the cap, you pay the difference in full on top of your normal gap.
How many hours are subsidised? The 3 Day Guarantee
Since 5 January 2026 the 3 Day Guarantee has replaced the old activity test. Every family eligible for CCS gets at least 72 hours of subsidised care per fortnight for each child, which covers about three days a week, whatever your work or study hours.
You can get 100 hours per fortnight if any of these apply:
you and your partner each do more than 48 hours of recognised activity, such as paid work, study or volunteering, per fortnight (the parent with fewer hours is the one that counts)
you care for an Aboriginal and/or Torres Strait Islander child
you have an approved exemption
you get Additional Child Care Subsidy for child wellbeing, temporary financial hardship or as a grandparent
If you already get CCS, the new hours were applied automatically. Hours you book above your subsidised hours are charged at the full fee, and the guarantee doesn't guarantee a place at a centre.
How to apply for the Child Care Subsidy
You claim online through your Centrelink account in myGov. You can claim before you have chosen a centre, and CCS starts once your service confirms the enrolment.
Set up myGov and link Centrelink. Create a myGov account if you don't have one and link it to Centrelink. You'll need to confirm your identity.
Get your details ready. You need your own and your child's Customer Reference Numbers (CRNs), your child's immunisation record up to date, your family income estimate and your bank details.
Make the claim. In your Centrelink online account choose Payments and claims, then the Child Care Subsidy claim. Answer the questions about your family, income and recognised activity.
Upload documents if asked. Services Australia may ask for proof of identity or activity before finishing your claim.
Enrol and confirm. Your centre creates an enrolment and you'll get a myGov message asking you to confirm it. Check the start date, days and service name, then confirm so CCS can be paid on time.
Keep your details current. Update your income estimate and activity when anything changes, to avoid a debt at tax time.
Started care before claiming? Claim as soon as possible. A new claim can generally only be backdated for a short time, so don't wait. Services Australia has the current rules.
Common problems and simple fixes
Child not matched: check the CRN and date of birth match exactly.
Claim won't submit: look for a document marked as required and upload it.
CCS not on your invoice: make sure you have confirmed the enrolment in myGov and that the start date matches your child's first day.
Changing centres: CCS follows your child, so you don't need a new claim. The new centre creates a new enrolment for you to confirm.
At Kaleidoscope Kids our centre teams can give you the service details you need and help you read your first invoices. Contact your nearest centre or see our enrolment page.
What else affects your CCS?
Absences
CCS is paid for up to 42 absence days per child each financial year, for any reason, including public holidays on your booked days. Extra absences can be approved for set reasons such as illness, with evidence.
Kindergarten and Free Kindy
In Queensland, Free Kindy covers 15 hours a week for 40 weeks for eligible children. CCS then applies to the other hours your child is in care. Read our Queensland Free Kindy guide.
Extra help: Additional Child Care Subsidy
Additional Child Care Subsidy (ACCS) gives extra help to some families, including where there are child wellbeing concerns, temporary financial hardship, grandparents caring for grandchildren or parents moving from income support into work. Ask Services Australia or your centre if it could apply to you.
How CCS turns into your weekly cost
Your gap fee is the daily fee minus the subsidy. For example, at a $150 daily fee with 90% CCS and the fee under the cap, the subsidy is $135 and the gap is $15 a day. Our childcare cost guide for Queensland explains fees per day and what they include, and the CCS calculator works out your own estimate in a minute.
Frequently asked questions
Do I need to reapply for the Child Care Subsidy each year?
No. Your claim continues, but you need to keep your income estimate and details up to date, and confirm your income after the financial year through your tax return.
Does the Child Care Subsidy make childcare free?
No. CCS lowers your fees but most families still pay a gap fee. The amount depends on your income, the fee and the hourly cap.
Do I still need to meet the activity test?
No, not for the first 72 hours a fortnight. Since 5 January 2026 every eligible family gets at least 72 hours. You only need more than 48 hours of recognised activity per fortnight, or an exemption, to get 100 hours.
Do both parents need to apply?
One parent makes the claim for the family. Both parents' income counts towards the family income estimate, and the parent with less recognised activity sets the number of hours.
What is the CCS income limit for 2026-27?
CCS stops at a combined family income of $538,520. Below that, the rate rises the lower your income is, up to 90% at $88,520 or less.
Why is my subsidy lower than I expected?
Usually because the fee is above the hourly rate cap, your income estimate has changed, or you booked more hours than your subsidised hours cover.
Does CCS apply at all Kaleidoscope Kids centres?
Yes. All five centres, in Logan Central, Booval, Goodna, Redbank and Rothwell, are approved for the Child Care Subsidy.
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