Compare Childcare Types: Real CCS Cost
The cheapest care type is not always the one with the lowest daily fee. Your real out-of-pocket cost depends on the provider's fee, the CCS hourly cap for that care type, your CCS percentage and how many subsidised hours you actually have.
This guide compares long day care, family day care, In Home Care and OSHC so you can see what really drives the gap fee.
The short answer
The cheapest care type depends on the provider's actual fee, the session length, the CCS hourly cap for that care type, your CCS percentage, and whether your subsidised hours cover the sessions you book.
General patterns:
- Family day care often has lower fees and smaller groups.
- Long day care often suits regular full-day care before school.
- OSHC is usually cheaper per session in term, but vacation care can add up quickly.
- In Home Care has the highest hourly cap, but access is restricted and the cap applies per family, not per child.
The four approved care types
| Care type | Where care is delivered | Typical use | Main cost trap |
|---|---|---|---|
| Long day care (CBDC) | Childcare centre | Regular full-day care before school | Daily fees often above the hourly cap |
| Family day care | Educator's home | Smaller group care, sometimes flexible | Availability and educator hours vary |
| In Home Care | Family's own home | Families who cannot use mainstream care | Restricted eligibility, capped places |
| OSHC | School or approved venue | Before, after and vacation care | Vacation care burns hours fast |
Centre Based Day Care is the formal CCS category. Most parents know it as long day care.
The 2025-26 hourly caps
The CCS hourly cap is the maximum hourly fee the government will subsidise. Your CCS percentage applies to the lower of:
- the actual hourly fee charged by your provider
- the hourly cap for that care type
| Care type | 2025-26 hourly cap |
|---|---|
| Centre Based Day Care, below school age | $14.63 |
| Centre Based Day Care, school age | $12.81 |
| Outside School Hours Care, below school age | $14.63 |
| Outside School Hours Care, school age | $12.81 |
| Family Day Care | $13.56 |
| In Home Care | $39.80 per family |
A $130 day might be cheaper than a $150 day, but the final gap depends on the session length, care type and how much of the fee sits above the cap. See hourly cap explained for the underlying mechanic and fees above the hourly cap for what happens when fees go over.
Why the cap matters: same daily fee, different result
Say two services both charge $150 per day.
Service A: long day care, 10-hour session
- Daily fee: $150
- Hourly fee: $15.00
- 2025-26 cap: $14.63
- Above cap: $0.37 per hour
Only $14.63 per hour is subsidised. The 37 cents above the cap is fully out of pocket.
Service B: family day care, 12-hour session
- Daily fee: $150
- Hourly fee: $12.50
- 2025-26 cap: $13.56
- Above cap: $0
The full $12.50 hourly fee can be considered for CCS because it sits below the cap.
Same daily fee. Different CCS outcome.
Worked example: long day care vs family day care
Assume a family CCS percentage of 73%, one child, a long day care fee of $150 for 10 hours, and a family day care fee of $100 for 8 hours.
Long day care
| Item | Amount |
|---|---|
| Daily fee | $150.00 |
| Hourly fee | $15.00 |
| Hourly cap | $14.63 |
| CCS estimate | $14.63 × 73% × 10 hours = $106.80 |
| Estimated daily gap | $43.20 |
Family day care
| Item | Amount |
|---|---|
| Daily fee | $100.00 |
| Hourly fee | $12.50 |
| Hourly cap | $13.56 |
| CCS estimate | $12.50 × 73% × 8 hours = $73.00 |
| Estimated daily gap | $27.00 |
In this example, family day care is cheaper because the fee is lower and sits below the cap. But that will not be true in every situation. A family day care educator charging high hourly fees can produce a larger gap than a centre with lower fees.
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How each care type compares
Long day care
Long day care usually suits families who need regular full-day care before school. It often runs Monday to Friday with long opening hours and consistent routines, and may include meals, nappies, education programs and kindergarten or preschool programs.
Cost watch-outs:
- Daily fees often sit well above the CCS hourly cap.
- Session length matters as much as daily fee.
- Some centres charge the same fee even for shorter hours.
- Kindergarten funding can reduce fees differently by state.
Best for regular work patterns, children below school age, and families wanting centre based routines and programs.
Family day care
Family day care is provided in an educator's home. It often has smaller groups and may offer more flexible hours than centre based care, including early starts, late finishes or arrangements that suit shift workers.
Cost watch-outs:
- Availability depends on individual educators.
- Fees vary significantly between educators.
- Some educators charge by the hour, others by session.
- The educator's hours may not match your work pattern.
Best for families wanting smaller group care, younger children, families needing flexibility, and families comparing lower fee options. See family day care vs centre based day care.
In Home Care
In Home Care is approved care delivered in the family home. It is not a nanny subsidy. Families must meet specific eligibility criteria and show that mainstream approved care is unavailable or unsuitable. The cap is much higher than other care types but applies once per family, not per child.
Cost watch-outs:
- Access is restricted and places are nationally capped.
- The higher CCS rate for second and younger children does not apply to IHC sessions.
- The family may still pay a large gap if the fee is above the cap.
Best for families with non-standard work hours, geographically isolated families, children or families with complex needs, and families who genuinely cannot use mainstream approved care. See In Home Care and CCS.
OSHC and vacation care
OSHC covers before school, after school and vacation care for school-age children. Before and after school sessions are usually shorter and cheaper than long day care. Vacation care often uses full-day sessions and can be much more expensive, especially on excursion days.
Cost watch-outs:
- The school-age cap is lower than the under-school-age cap.
- Vacation care burns hours fast.
- Excursion days can sit well above the cap.
- Not every holiday program is CCS-approved.
Best for school-age children and term-time before and after school care. See OSHC and CCS and vacation care and CCS.
How to compare your own options
Before choosing a service, ask each provider:
- What is the daily or session fee?
- How many hours are charged per session?
- Is the service CCS-approved?
- Which care type will be reported for CCS?
- Are meals, nappies, excursions or activities included?
- Are there different fees for school holidays?
- Will kindergarten or preschool funding reduce the fee?
- What happens if your child is absent?
Then compare hourly fee, hourly cap, subsidised hours, your CCS percentage and weekly gap. Do not compare daily fees alone.
What this means for you
There is no universal cheapest care type. Family day care often wins where fees sit below the cap. Long day care can be good value where fees are close to the cap and the program is strong. OSHC is usually low cost in term but vacation care surprises families. IHC can be cost effective for eligible families with multiple children, but is not widely available.
The only reliable comparison is your actual fee and session length, run through CCSChecker for your income.
All figures are estimates based on current CCS settings and the inputs you provide. Final entitlement is determined by Services Australia.
Key takeaways
- The hourly cap, not the daily fee, decides how much of your fee CCS can subsidise.
- Family day care often has lower gaps where fees sit below the $13.56 cap.
- IHC's $39.80 cap is per family, and the higher rate does not apply to IHC sessions.
- Vacation care can blow through your fortnightly hours faster than term-time OSHC.
Frequently Asked Questions
Is family day care always cheaper than long day care?
No. Family day care fees vary significantly by educator. Some educators charge above the long day care cap, which produces a larger gap. The only reliable comparison is the actual hourly fee and session length, run against your CCS percentage.
Does my CCS percentage change between care types?
No. Your income-tested CCS percentage is the same across approved care types. What changes is the hourly cap that applies and the session length, which together change the dollar value of your subsidy.
Why is the OSHC cap lower than the long day care cap?
The under-school-age cap is $14.63 per hour for both Centre Based Day Care and OSHC. The school-age cap is $12.81 per hour. Most OSHC users are school age, so most families notice the lower cap when their child starts school.
Does the higher CCS rate apply to In Home Care?
No. IHC is subsidised per family, so the higher rate for second and younger children does not apply to IHC sessions. A child in IHC may still count when working out a sibling's higher rate in another care type.
Official sources
- Department of Education — Child Care Subsidy hourly rate caps
- Services Australia — Child Care Subsidy
- Department of Education — 3 Day Guarantee