What is the maximum Child Care Subsidy rate in 2025-26?

The maximum CCS rate is 90% of the applicable hourly cap for families with combined Adjusted Taxable Income of $85,279 or less in 2025-26.

At what income does Child Care Subsidy stop?

CCS reduces to 0% for families with a combined Adjusted Taxable Income of $535,279 or more in 2025-26. Above this threshold, no CCS is paid.

How is CCS calculated for a family earning $120,000 combined income?

For a combined ATI of $120,000 in 2025-26: income above the $85,279 threshold = $34,721. At 1% reduction per $5,000, the taper is 6.9%. CCS rate = 90% - 6.9% = approximately 83%. This means 83% of fees up to the hourly cap are subsidised.

Does having a second child increase my CCS rate?

Yes. A higher CCS rate applies to the second child (and younger children) in care simultaneously. The higher rate schedule starts at 95% for lower incomes and tapers differently from the standard 90% schedule. Both children must be in approved care at the same time for the higher rate to apply.

How Much Child Care Subsidy Will I Get?

6 min read Updated 6 March 2026

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Most families receive between 36% and 90% of their childcare fees subsidised through CCS — but your actual weekly cost depends on four things working together: your income, your subsidised hours, your provider's fees, and the government hourly cap. Here's how each one affects what you'll pay.

Your CCS Percentage Starts With Income

Your combined family income sets your CCS rate. The table below shows how the taper works for the 2025-26 financial year:

Family income	CCS rate
Up to ~$83,280	90%
~$83,280 – ~$118,771	Tapers from 90% down (1% per $3,000)
~$118,771 – ~$354,305	36% (base rate)
~$354,305 – ~$535,994	Phases out to 0%
Above ~$535,994	0%

Because the reduction is gradual, most families fall somewhere between 40% and 85% — not neatly at 90% or 0%.

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For a detailed walkthrough of the taper steps, see CCS income thresholds and steps.

How Subsidised Hours Work

CCS doesn't cover unlimited childcare hours. The number of subsidised hours you're entitled to each fortnight depends on your recognised activity level — paid work, study, training, volunteering, or actively looking for work.

Since January 2026, the 3-Day Guarantee means most families receive a minimum of 72 subsidised hours per fortnight, even with low activity. Families with higher activity levels can access up to 100 hours per fortnight.

If your child attends more hours than your fortnightly entitlement, you pay the full fee for those extra hours without any CCS contribution.

See activity hours explained for a breakdown of which activities count and how many hours they unlock.

The Hourly Rate Cap

CCS is applied to the lower of your provider's hourly fee or the government hourly rate cap. If your provider charges above the cap, you pay the gap out of pocket — on top of your regular CCS gap fee.

Current hourly caps (2025-26):

Care type	Hourly cap
Centre Based Day Care (CBDC)	$14.63
Family Day Care (FDC)	$13.56
Outside School Hours Care (OSHC)	$14.63
In Home Care	$39.80 per family

For example: if your provider charges $16.00/hr and the cap is $14.63/hr, CCS applies only to $14.63/hr. You pay the $1.37/hr gap plus your share of the $14.63.

See fees above the hourly cap for a worked example of how this affects your weekly cost.

Multiple Children Under 5

If you have more than one child aged 5 or younger in childcare at the same time, the younger child may attract a higher CCS rate:

For families with income up to ~$143,267: the younger child's rate can be up to 95%
This higher rate tapers as income increases, following the same structure as the standard rate

The higher rate applies automatically — you don't need to apply separately. See second child higher CCS rate explained for details.

A Worked Example

A family with a combined income of $180,000 has one child attending centre-based long day care three days a week:

Their CCS rate is approximately 60% (in the taper zone)
The hourly cap for CBDC is $14.63
If their provider charges $15.00/hr, CCS applies to $14.63 — so the effective subsidy per hour is $8.78 (60% × $14.63)
They pay the remaining $5.85/hr (40% of $14.63) plus $0.37/hr gap fee = $6.22/hr out of pocket

The same family's income neighbours who earn $170,000 might be at ~63% — a different weekly cost from a seemingly similar situation.

This is why looking up your CCS percentage alone doesn't tell you your actual childcare bill. Use the calculator to model your specific fees and hours:

Why Childcare Can Still Feel Expensive

Even with a reasonable CCS rate, families often find costs higher than expected because:

Provider fees above the cap — your subsidy doesn't stretch to cover the full fee
Hours above your entitlement — extra sessions are fully out-of-pocket
Income changes during the year — if your income rises and you don't update your estimate, a debt builds up to be repaid after tax time

Understanding these three interactions is the key to budgeting for childcare accurately. For the end-of-year reconciliation, see CCS balancing explained.

CCS Is Rechecked After Tax Time

CCS is paid during the year based on your income estimate. Once you lodge your tax return, Services Australia recalculates your entitlement using your actual income — a process called CCS balancing.

If your actual income was higher than estimated, you'll receive a debt notice for the overpaid subsidy. Centrelink automatically withholds 5% of CCS throughout the year to buffer against this. See withholding explained.

Key Takeaways

CCS can cover up to 90% of eligible fees, tapering to 0% above ~$536k family income.
Your rate is set by income, but your actual cost also depends on hours entitlement and whether your provider charges above the cap.
Most families get a minimum of 72 subsidised hours per fortnight under the 3-Day Guarantee; up to 100 with higher activity.
A second child under 5 in care at the same time may attract a higher CCS rate (up to 95%).
CCS is reconciled after tax time — keeping your income estimate updated in myGov reduces the risk of a year-end debt.

FAQ

What percentage of childcare does CCS cover?

CCS can cover up to 90% of eligible fees for families with income up to ~$83,280. Above that threshold it tapers, reaching a base rate of 36% for incomes between ~$118,771 and ~$354,305, and 0% above ~$536k.

Does CCS cover the full childcare fee?

No. CCS is applied to the lower of your provider's hourly fee or the government hourly cap. If your provider charges above the cap, you pay the gap fee in addition to your normal out-of-pocket share.

How many hours does CCS cover per fortnight?

Most families receive at least 72 hours per fortnight (the 3-Day Guarantee minimum). Families with higher recognised activity levels can access up to 100 hours. Hours above your entitlement are not subsidised.

What income gets the full 90% CCS?

Families with a combined adjusted taxable income up to approximately $83,280 receive the maximum 90% rate. Above this, the rate tapers by roughly 1% for every additional $3,000 of income.

How do I find out my exact out-of-pocket cost?

The CCS percentage alone doesn't tell you your weekly bill — you also need your provider's hourly fee, the hourly cap for your service type, and your approved hours. Use the CCS calculator to enter your specific details and get a full weekly cost estimate.

Figures shown are for the 2025-26 financial year. Rates are indexed annually each July. For confirmed current figures, visit servicesaustralia.gov.au/child-care-subsidy.