How are activity hours calculated for CCS?

Activity hours are the total hours of recognised activity per fortnight for each parent or carer. Centrelink uses the lower of the two parents' activity hours to determine the subsidised hours entitlement. Hours are counted as an average over the period, and evidence may be required.

What activities count toward the CCS activity test?

Recognised activities include paid work (including part-time or casual), self-employment, unpaid work in a family business, studying at an approved course, volunteering, job searching (with evidence), and certain other approved activities. Caring for another child or person at home does not count as a recognised activity.

What happens if my activity hours change?

If your activity hours change — for example, you reduce your work days or stop studying — your subsidised hours entitlement may reduce. Update your activity details in your Centrelink account. From January 2026, the minimum entitlement is 72 hours per fortnight regardless of activity level, so reductions below this floor will not reduce your CCS hours below 72.

Do activity hours affect my CCS rate, or just the hours subsidised?

Activity hours only affect the number of subsidised hours per fortnight — they do not affect your CCS percentage (rate). Your CCS rate is determined solely by your family's Adjusted Taxable Income.

CCS Activity Test: How Activity Hours Are Calculated

5 min read Updated 11 February 2026

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Activity hours are a key component of Child Care Subsidy (CCS). They determine the maximum number of childcare hours per fortnight that can be subsidised. Check how activity hours affect your estimate.

CCS is not only influenced by income and fees. Even where a family is otherwise eligible, activity hours can limit how much care CCS applies to. Understanding how activity hours are assessed is essential to understanding out-of-pocket childcare costs.

This guide explains how activity hours are worked out and why they matter financially.

What are activity hours?

Activity hours refer to the number of hours parents spend in recognised activities.

These activities may include paid work, self-employment, study or training, volunteering, or approved job search activities. What counts as an activity, and how it is assessed, is determined by Services Australia based on reported information and supporting evidence.

For CCS, Services Australia works out your subsidised hours per fortnight based on the activity test. If you have a partner, they generally use the lower of your two recognised activity levels to determine your family's hours.

How activity hours affect subsidised care

From 5 January 2026, most CCS-eligible families can get at least 72 hours of subsidised care per fortnight (the 3 Day Guarantee), even if they do not meet the activity test.

To get 100 hours per fortnight under the activity test, you need more than 48 hours of recognised participation every fortnight. If you have a partner, you and your partner generally each need more than 48 hours. See our 72 vs 100 hours guide for a detailed comparison.

Some groups (for example, First Nations children in certain circumstances) may qualify for 100 hours automatically. See Services Australia, Recognised participation and the activity test for the full list of recognised activities and exemptions.

Common misunderstanding: for couples, it is not your combined hours that matter. Services Australia generally uses the lower of the two activity levels, and 100 hours usually requires that each person has more than 48 hours of recognised participation.

Booking childcare beyond the applicable limit results in those additional hours being charged at the full fee.

Why activity hours affect out-of-pocket costs

Activity hours do not change a family's CCS percentage. They limit how many hours that percentage can be applied to.

As a result:

a family may be eligible for CCS but still pay full fees for some care
longer daycare sessions can use subsidised hours more quickly
exceeding the activity-based limit can significantly increase out-of-pocket costs

Two families with the same income, fees, and care days can pay different amounts solely due to differences in activity hours.

What may be counted as activity

Whether an activity is recognised, and how many hours are counted, depends on individual circumstances and Services Australia assessment.

Examples of activities that may be recognised include:

paid work, including some work performed from home
certain types of paid leave
approved study or training

Examples of time that is generally not recognised as activity include:

unpaid personal time
most informal caregiving arrangements
time that does not meet activity criteria

Because eligibility can depend on the type, purpose, and structure of an activity, families should not assume all time spent is counted equally.

Changes in activity hours

Activity hours are not fixed and can change due to:

changes in work hours or days
transitions between employment, leave, or job search
changes to study or training arrangements

When activity hours change, the maximum number of subsidised childcare hours may also change. If childcare bookings remain the same, more care may fall outside CCS coverage. For more on this scenario, see Reducing Work Hours: Impact on your CCS.

Families are required to update Services Australia when their activity circumstances change. Failing to do so can affect CCS outcomes during reconciliation.

The interaction between activity hours and session length

Activity hours determine how many hours can be subsidised. Session length determines how quickly that limit is used.

For example:

longer sessions consume more subsidised hours per day
lower activity combined with long sessions can exhaust CCS early in the fortnight
once the limit is reached, remaining sessions are charged at full fee

Understanding this interaction is essential when comparing work patterns, care arrangements, or changes in employment.

Why modelling activity hours matters

Being eligible for CCS does not guarantee that all booked childcare will be subsidised.

Accurate comparison requires:

realistic estimates of recognised activity hours
actual session lengths
real centre fees
modelling what happens when subsidised hours are exceeded

Small changes in activity or care structure can materially change the financial outcome.

The bottom line

Activity hours place a cap on how much childcare CCS can be applied to.

They do not increase the subsidy rate. They determine how many hours that rate applies to.

Whether childcare is affordable depends not only on income and fees, but on how activity hours interact with session length and booking patterns.

Understanding this relationship allows families to make decisions based on actual costs rather than assumptions.

Official sources

This is general guidance only. Report all changes (income, relationship, care arrangements) promptly via myGov. For personalised advice, contact Services Australia at 136 150 or visit servicesaustralia.gov.au/child-care-subsidy.