*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 and your activity level - things like work, study or volunteering. 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 current hourly rate cap is $14.63 per hour.

What does the subsidy actually cover?

Families earning below $85,279 receive a 90% subsidy. For incomes between $85,279 and $535,279 the subsidy reduces by 1% for every additional $5,000 earned. Families earning $535,279 or more are not eligible for CCS. Families with more than one child aged 5 or under and earning below $367,563 may receive up to 95% for their younger children.

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 access up to 5 days you'll still need to meet the activity test with more than 48 hours per fortnight in recognised activity.

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, so their subsidy percentage is close to 90%, tapering down slightly as income rises past $85,279. If their daily fee is under the government's hourly rate cap of $14.63 per hour (roughly $146 for a 10 hour day), 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 $26 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 and activity level. 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 $535,279 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 under $85,279 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, have your child immunised or on an approved catch up schedule, and meet the activity test if you want more than the guaranteed 3 days a week. 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 well above the top threshold. 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.