*This CCS calculator provides an estimate only. For 100% accurate results, use the official Government Child Care Subsidy calculator.

Not sure what the numbers mean? Childcare fees in Australia can look confusing at first because your real cost depends on your subsidy percentage, activity hours and booked days. We explain how the gap fee works and what families actually pay in our guide to childcare costs after CCS. Not sure if you are eligible? See what income qualifies for the Child Care Subsidy.

How is the Child Care Subsidy calculated?

Your CCS percentage is based on your family's combined annual income. Your recognised activity, like work, study or volunteering, only affects how many hours are subsidised above the guaranteed 72 hours a fortnight. The subsidy applies to either your actual hourly fee or the government's hourly rate cap, whichever is lower. For centre-based day care, the 2026-27 hourly rate cap is $15.19 per hour

What does the subsidy actually cover?

Families earning up to $88,520 receive a 90% subsidy. For incomes between $88,520 and $538,520 the subsidy reduces by 1% for every additional $5,000 earned. Families earning $538,520 or more are not eligible for CCS. Families with more than one child aged 5 or under may get a higher rate for their younger children: 95% for family income up to $146,437, tapering down, with the higher rate ending at $370,727.

The 2026 3-Day Guarantee

From 5 January 2026 all eligible families are entitled to at least three days of subsidised care per week (72 hours per fortnight) regardless of work or study activity. To get 100 hours per fortnight (about 5 days), you and your partner each need more than 48 hours of recognised activity per fortnight, or an approved exemption. Families caring for an Aboriginal and/or Torres Strait Islander child also get 100 hours.

A worked example

Numbers make more sense with a real scenario. Say a family earns $90,000 combined and books their child in for 2 days a week at a centre charging $130 a day.

At $90,000 combined income, this family sits just above the top income bracket of $88,520, so their subsidy is 89.7%. Their daily fee is under the government’s hourly rate cap of $15.19 per hour (roughly $152 for a 10 hour day), so the subsidy is calculated on their actual fee. At $130 a day, that works out to around $117 subsidised per day, leaving a gap fee of about $13 a day, or roughly $27 a week for their 2 days of care.

Every family's numbers look different depending on income, activity hours and the centre's daily rate, but this gives you a sense of how the pieces fit together. Use the calculator above to run your own numbers.

What's the gap fee, and how is it worked out?

The gap fee is simply the difference between what your centre charges and what the subsidy covers. It's the amount you pay out of pocket each day your child attends.

Two things affect how big that gap is. First, your subsidy percentage, based on your family’s combined income. Second, whether your centre's daily fee sits above or below the government's hourly rate cap. If your fee is above the cap, the subsidy is calculated on the capped amount, not your actual fee, which means the gap fee covers that difference too.

This is why two families on the same income can end up with different weekly costs, it comes down to which centre they've chosen and how that centre's fees compare to the cap.

What's the CCS cut off for 2026?

Families earning $538,520 or more aren't eligible for any Child Care Subsidy. Below that, your percentage tapers down gradually as income rises, starting from the maximum 90% for families earning up to $88,520 and reducing by 1% for every extra $5,000 earned. There's no hard cliff in the middle of that range, it's a steady slide, so it's worth running your own numbers through the calculator rather than assuming you're not eligible just because you're above the lowest bracket.

Am I eligible for the Child Care Subsidy?

Most Australian families are. You'll generally need to meet residency requirements, be responsible for paying the fees, and have your child immunised or on an approved catch up schedule. Since January 2026 there's no activity test for the first 72 hours a fortnight. Combined family income affects your percentage, not your eligibility itself, so it's rare for a family to be completely locked out unless they're above $538,520. If you're not sure where you stand, our guide on what income qualifies for the Child Care Subsidy walks through it in more detail.