CCS Hourly Cap Explained: 2025-26 Rates and How It Affects Your Costs
What the Hourly Cap Is and Why It Matters
The CCS hourly rate cap is the maximum hourly fee that Centrelink will subsidise. Understanding this cap is essential for estimating your out-of-pocket childcare costs.
How the Hourly Cap Works
The government sets a maximum hourly fee for each type of childcare service. Your CCS percentage is applied to the lower of:
- Your actual hourly fee, or
- The hourly cap for your service type
If your provider charges more than the cap, you pay the difference out of pocket — on top of your regular gap fee.
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Current Hourly Caps (2025-26)
| Service Type | Age Band | Hourly Cap |
|---|---|---|
| Centre Based Day Care (CBDC) | Under school age | $14.63 |
| Centre Based Day Care (CBDC) | School age | $12.81 |
| Family Day Care (FDC) | All ages | $13.56 |
| Outside School Hours Care (OSHC) | School age | $12.81 |
| In Home Care (IHC) | Per family | $39.80 |
Example: How the Cap Affects You
Say your centre charges $16 per hour for a child under school age:
- Hourly cap for CBDC under school age: $14.63
- CCS applies to: $14.63 (not the full $16)
- You pay the $1.37 difference for each hour, plus your gap
If your CCS percentage is 85%, you'd receive $12.44 subsidy per hour (85% of $14.63), leaving a gap of $3.56 per hour.
Key Takeaways
- The hourly cap limits the amount the government will subsidise
- Fees above the cap come entirely out of your pocket
- Different service types have different caps — see our FDC vs CBDC comparison for details
- School age children have a lower cap than younger children
Not sure what your fees mean in practice? Check your estimated weekly costs or see our guide on average childcare costs in Australia.
Frequently Asked Questions
Why are there different caps for different age groups?
The caps are based on typical fee levels for different service types. Younger children generally require more intensive care, which is reflected in higher caps.
Do the hourly caps change each year?
Yes, the government reviews and adjusts the hourly caps periodically. The current caps are for the 2025-26 financial year.
How do I know if my fees are above the cap?
Compare your provider's hourly rate to the cap for your service type. If their rate is higher, you'll be paying the difference.
Can I claim the amount above the cap somewhere else?
No. The amount above the hourly cap is not subsidised by any government program.
Official sources
- Services Australia, Child Care Subsidy rates
- Department of Education, CCS provider handbook (hourly fee caps)
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.
Hourly caps are indexed annually. For 2025-26: $14.63 (centre-based day care under school age), $13.56 (family day care), and lower for outside school hours care. Check current rates at servicesaustralia.gov.au/child-care-subsidy/rates.