Child Care Subsidy Calculator
Estimate your 2026–27 CCS percentage from combined family income, activity hours and care type. See the subsidised hours, hourly cap, weekly subsidy and the gap you may pay.
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Family income and care details
Use your best estimate for the financial year.
All calculations run locally in your browser.
Your CCS percentage
$120,000 family income · centre based care
- Subsidy per week
- $504.31
- Gap per week
- $155.69
Weekly and annual estimate
AUD- Combined family income
- $120,000
- CCS percentage
- 83%
- Hourly rate cap
- $15.19
- Your hourly fee
- $16.50
- Subsidised hours per fortnight
- 100 hrs
- Care hours per week
- 40 hrs
- Weekly fee before CCS
- $660.00
- Weekly CCS
- −$504.31
- Annual CCS (48 weeks)
- −$24,207
- Annual gap fee
- $7,473
Activity test
100 hoursAt 76 hours of activity per fortnight, you qualify for 100 subsidised hours. From 5 January 2026, eligible families get at least 72 hours.
Estimate only. CCS is paid directly to your provider and reconciled against your actual income at the end of the financial year. Fees above the cap and non-session charges are not subsidised.
How the Child Care Subsidy is calculated
The Child Care Subsidy (CCS) is a percentage of the cost of approved care, subject to an hourly rate cap. Two things set the percentage: your combined family adjusted taxable income and the number of subsidised hours you are entitled to use. The percentage is not affected by the number of hours you use, but the dollar amount is.
CCS % = 90% for income up to $88,520
Above $88,520: 90% − 1 percentage point for every $5,000 of income
At $538,520 and above: 0%
For 2026–27, a family earning $120,000 has income $31,480 above the $88,520 threshold. That is 6.3 steps of $5,000, rounded up to 7, so the rate is 90% − 7% = 83%. The rate is applied to the lower of the provider’s hourly fee and the CCS hourly cap. If the provider charges $16.50 an hour and the cap is $15.19, the subsidy is 83% of $15.19, not 83% of $16.50.
CCS is usually paid directly to the approved provider and shown as a fee reduction. At the end of the financial year, Services Australia reconciles the subsidy against your actual income. If you earned more than your estimate, you may have a debt; if you earned less, you may receive a top-up.
Activity hours and subsidised hours
The activity test determines how many hours of care can be subsidised each fortnight. From 5 January 2026, eligible families receive at least72 hours of subsidised care per fortnight. Families with 48 or more hours of recognised activity per fortnight can receive up to 100 hours.
| Recognised activity per fortnight | Subsidised hours per fortnight | Subsidised hours per week |
|---|---|---|
| 0 to under 48 hours | 72 hours | 36 hours |
| 48 hours or more | 100 hours | 50 hours |
Recognised activity includes paid work, self-employment, study, training, volunteering and some other approved activities. For a couple, the activity test is generally based on the parent with the lower level of activity. Some families are exempt from the activity test, including certain carers, grandparents and families experiencing hardship. Check your individual entitlement with Services Australia.
The hours entitlement is a cap on subsidised hours, not a requirement to use that many. If you use fewer hours, CCS is paid on the hours you actually use. If you use more than your entitlement, the extra hours are charged at the full fee.
Hourly rate caps by care type
The CCS hourly rate cap is the maximum hourly fee the government will subsidise. It is indexed each July. The 2026–27 caps are:
| Care type | Below school age | School age |
|---|---|---|
| Centre based day 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 |
The cap does not limit what a provider can charge. It only limits the amount used to calculate CCS. A centre charging $160 a day for 10 hours is charging $16 an hour; if the cap is $15.19, the extra $0.81 an hour is a gap fee before the CCS percentage is applied. Higher fees in inner-city areas or for long-day care can therefore produce a larger gap than the cap alone suggests.
Gap fees and out-of-pocket costs
Your gap fee is the difference between the provider’s fee and the CCS amount. It is not simply the unsubsidised percentage of the total fee, because the subsidy is calculated on the capped hourly rate. The formula is:
Weekly gap = (hourly fee × hours used) − (CCS % × lower of hourly fee and hourly cap × subsidised hours)
Using the calculator’s default example: 40 hours at $16.50 is $660 a week. The subsidy is 83% of the $15.19 cap for 40 hours, which is about $504.31, leaving a gap of about $155.69 a week. Over 48 weeks, that is about $7,473 a year. If the family used 50 hours a week but only had 72 subsidised hours a fortnight, the extra hours above 36 a week would be charged at the full fee.
Other costs can sit outside the CCS calculation, including enrolment fees, meals, nappies, excursions, sunscreen and late collection fees. Absences can also affect the subsidy. Services Australia allows a certain number of absence days each financial year, and additional absences may be approved in specific circumstances.
The higher rate for second and younger children
Families with more than one child aged 5 or under in care may receive a higher CCS rate for the second and younger children. The higher rate is up to95%, compared with the standard rate for the eldest eligible child. For 2026–27, the higher rate applies in full up to $146,437 of family income, then phases down and stops at $370,727.
The calculator estimates the standard rate for one child, so it will understate the subsidy for a family with multiple young children. Use the Services Australia CCS estimate or the official fee estimator for a household-specific result. If you are comparing care options, thepro rata salary calculator can help you see how reduced working hours affect gross pay and leave, while thepay rise calculator shows how a salary increase changes take-home pay before childcare costs.
Questions
Child Care Subsidy Calculator FAQs
Quick answers about how this calculator works and what it includes.
How is the Child Care Subsidy percentage calculated?
For 2026–27, families with combined adjusted taxable income up to $88,520 receive the maximum 90% CCS rate. Above that, the rate falls by 1 percentage point for every $5,000 of income, reaching 0% at $538,520. The percentage applies to the lower of your provider’s hourly fee or the CCS hourly rate cap.
How many subsidised hours do you get?
From 5 January 2026, eligible families receive at least 72 hours of subsidised care per fortnight. Families with 48 or more hours of recognised activity per fortnight can receive up to 100 hours. Activity includes paid work, study, training, volunteering and some other approved activities, and the lower-activity parent’s hours are generally used.
What is the CCS hourly rate cap for 2026–27?
For 2026–27 the cap is $15.19 an hour for centre based day care and outside school hours care for children below school age, $13.30 for school-age children, $14.08 for family day care, and $41.31 per family for in home care. If your provider charges more than the cap, you pay the difference as a gap fee.
Does the calculator include the higher rate for a second child?
No. The calculator estimates the standard CCS rate for one child. Families with more than one child aged 5 or under may receive a higher rate for the second and younger children, up to 95%. The higher rate phases down at higher incomes and stops at $370,727. Use the Services Australia estimate for a family with multiple children.
What income counts for CCS?
CCS uses combined family adjusted taxable income, not just salary. It can include reportable fringe benefits, net rental income, investment income, grossed-up dividends and capital gains. Salary packaging and novated leases can therefore affect your CCS rate even if your taxable salary looks lower. Update your income estimate in myGov when your circumstances change.
Why is my gap fee higher than the calculator shows?
The calculator assumes the provider charges one hourly fee and that your child uses the entered hours each week. Real invoices can include absences, public holidays, enrolments, extra sessions, nappies, meals, levies and fees above the hourly cap. CCS is also paid on approved care only and is subject to attendance and immunisation rules. Check your provider’s fee schedule and your CCS statement.
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