CCSChecker Methodology

Rules & Data Version

Rules version: 2025–26 Based on publicly available CCS settings as at 5 January 2026

CCSChecker provides an independent estimate only. Final Child Care Subsidy (CCS) eligibility, rates and payments are assessed and determined by Services Australia.

We endeavour to keep this tool as accurate as possible by aligning calculations with publicly available government guidance and updating rules when official settings change. However, this remains an estimation tool and individual outcomes may vary.

This page describes how CCSChecker implements publicly available rules. Rules and thresholds can change over time.

What CCSChecker Models

Free tools:

• CCS weekly cost calculator — estimates out-of-pocket childcare cost for one family scenario
• FTB standalone calculator — estimates Family Tax Benefit Part A and Part B
• PPL Planner — models leave income, household income timeline, and return-to-work scenarios
• EV novated lease impact calculator — standalone tool at /ev

CCS calculator (free) models:

• CCS percentage based on combined family income (Adjusted Taxable Income)
• Activity test hours and subsidised hours per fortnight
• The 3 Day Guarantee minimum entitlement (72 hours per fortnight)
• Hourly rate caps by service type and age band
• Standard and higher rate child rules (for multiple children under 6)
• Withholding (default 5%, adjustable between 0–10%)
• 365-day annual modelling (not a flat 52 weeks)
• Children turning 6 during the financial year
• Income estimate updates (forward-only adjustment logic)

Premium features additionally model:

• Family Tax Benefit (FTB) Part A and Part B entitlements
• After-tax, after-childcare household earnings ("What you actually keep")
• Income tax, Medicare levy, HELP repayments and Medicare Levy Surcharge
• EV novated lease impact on Adjusted Taxable Income via reportable fringe benefits
• Scenario A vs Scenario B comparison with weekly and annual differences

All calculations use full internal precision. Rounding is applied only at display level unless otherwise noted.

Core CCS Calculation Logic

1. CCS Percentage

For 2025–26:

• Income ≤ $85,279 → 90%
• Income ≥ $535,279 → 0%
• Between those thresholds, the standard CCS percentage reduces by 1 percentage point per $5,000 of income above the threshold (it is not a hard cliff at a single dollar amount).

Formula (standard rate):

Standard CCS % = 90% − ((ATI − 85,279) ÷ 5,000)

For a plain-English explanation of the percentage steps, see CCS percentage steps explained.

The result is then bounded between 0% and 90%.

2. Higher Rate for Additional Children Under 6

Where more than one CCS-eligible child aged 5 or under is in care:

• The oldest eligible under-6 child receives the standard rate.
• Additional under-6 children receive a higher CCS rate (up to 95%) based on a tiered income schedule.
• The higher rate only applies while income remains below $367,563.

The higher rate schedule for 2025–26:

The higher rate is always at least equal to the standard rate — it never falls below it. Child ordering: the oldest CCS-eligible child aged 5 or under receives the standard rate first. Any additional under-6 children are then assigned the higher rate where eligible.

3. Activity Test → Subsidised Hours

Subsidised hours are calculated per child and are based on the partner with the lower recognised activity level.

For 2025–26:

• 0–47 activity hours per fortnight → 72 hours per fortnight
• 48+ activity hours per fortnight → 100 hours per fortnight

The 72-hour minimum reflects the 3 Day Guarantee effective 5 January 2026. Every CCS-eligible family receives at least 72 subsidised hours per fortnight regardless of activity level. See our guide on activity hours explained for more detail.

Children identified as Aboriginal or Torres Strait Islander (ATSI) are modelled as receiving 100 hours per fortnight from 5 January 2026, subject to CCS eligibility requirements.

Weekly subsidised hours = fortnight entitlement ÷ 2.

For each child, subsidy is limited to the lesser of:

• the child's actual hours used, and
• the child's weekly entitlement.

4. Hourly Fee Calculation

CCSChecker supports two fee models:

Daily fee model

• Hourly rate = daily fee ÷ hours per day (capped at 12 hours)
• Weekly fees = daily fee × days per week

Hourly fee model

• Hourly rate = fee per hour
• Weekly fees = fee per hour × hours per week

5. Hourly Rate Caps

For 2025–26, the hourly caps are:

CCS is calculated using the lower of:

• Your actual hourly fee
• The government hourly cap for your care type and age band

If your hourly fee exceeds the cap, the subsidy is calculated on the capped rate only. See hourly cap explained for a plain-English guide.

The difference remains out-of-pocket.

Display note: CCSChecker uses the exact published hourly caps in calculations. In some dashboard views a rounded cap may be shown for readability. Where a rounded cap is shown, calculations still use the exact cap value.

6. Withholding

Default withholding is 5% unless changed (0–10%).

Per subsidised hour:

Gross subsidy = capped hourly rate × CCS % Net subsidy = gross subsidy × (1 − withholding)

"CCS paid" is calculated using the net subsidy after withholding. For example, if withholding is 5%, CCSChecker models a 5% reduction in weekly payments to reflect the amount held back to reduce reconciliation risk.

Weekly out-of-pocket = total weekly fees − CCS paid.

Annual Calculations

Annual figures are calculated using 365-day modelling rather than a flat 52 weeks.

The 2025–26 financial year runs from:

1 July 2025 → 30 June 2026 (365 days)

Annual values use:

365 ÷ 7 = 52.142857 weeks

This means annual totals may differ slightly from simply multiplying a weekly figure by 52.

If a child turns 6 during the year, the year is segmented and weighted by the exact number of days before and after that date.

Year Impact Planner (Income Estimate Changes)

When you update your income estimate:

• CCS payments adjust from the update date forward.
• Earlier payments are not recalculated.

The Year Impact Planner:

1. Calculates weekly outcomes under Scenario A and Scenario B.
2. Splits the financial year at the relevant update date.
3. Estimates:
   • Remainder-of-year impact
   • Full-year impact
   • Estimated balancing adjustment

Estimated balancing adjustment = (modelled full-year entitlement under your final scenario) − (modelled CCS paid based on when you updated your estimate).

This is a modelling estimate only.

PPL Planner

The PPL Planner models household income across the first year after a baby, covering parental leave and the transition to childcare.

2025–26 Paid Parental Leave Rates

The daily rate is based on the 2025-26 National Minimum Wage (~$24.95/hr × 7.6 standard hours). It is indexed annually following the Fair Work Commission's minimum wage review.

Leave Income Calculation

For each parent:

• Govt PPL gross = daily rate × govt PPL days claimed
• Govt PPL net = gross × (1 − 0.15)
• Employer leave total = (annual income ÷ 52) × employer leave weeks × employer leave rate
• Total leave income = govt PPL net + employer leave total

The gap between total leave weeks and the childcare start date is modelled as an unpaid period (zero income from employment).

Monthly Income Timeline

The planner builds a 12-point monthly model covering:

1. Govt PPL phase (month 1 through PPL exhaustion)
2. Employer leave phase (overlapping or sequential with PPL)
3. Unpaid leave phase (if any gap before return to work)
4. Return-to-work phase (income resumes, childcare costs begin)

Each month carries a phase label, household income total, childcare cost, and net household position.

Return-to-Work Scenarios

The planner calculates four scenarios (2, 3, 4, and 5 days per week return):

For each scenario:

1. Annual household income = parent 1 income (pro-rated to work days) + partner income
2. Estimated CCS rate — derived from the combined income using the 2025–26 taper schedule
3. Annual childcare cost (gross) = daily fee × care days per week × 52.142857 weeks
4. Annual CSS benefit = gross childcare × cap-adjusted CCS rate
5. Annual net after childcare = annual household income − (annual childcare cost − annual CSS benefit)
6. Delta vs full-time = net at this scenario − net at 5 days/week

The CCS rate used in scenario modelling is estimated from the income taper only. The full CCS calculator (including hourly caps, actual hours used, and activity test) should be used for a more precise figure.

Family Tax Benefit (FTB) Estimator

The FTB estimator calculates estimated FTB Part A and Part B entitlements using 2025–26 rates. It is available as a standalone free tool at /ftb and as a premium feature within the dashboard.

FTB Part A

Paid per dependent child. The maximum fortnightly rate depends on the child's age:

• 0–12 years: $227.36 per fortnight
• 13–15 years: $295.82 per fortnight
• 16–19 years (studying): $295.82 per fortnight

FTB Part A reduces based on family Adjusted Taxable Income:

• Income up to $66,722: maximum rate
• Income $66,722–$118,771: reduces by 20 cents per dollar above $66,722
• Income above $118,771: reduces by 30 cents per dollar until base rate is reached

A base rate of $72.94 per child per fortnight applies until a second income threshold phases it out entirely.

An end-of-year supplement of $938.05 per child may apply for families with ATI up to $80,000.

For separated parents, child support (maintenance) received may further reduce FTB Part A under the maintenance income test.

FTB Part B

Paid per family (not per child) for single parents or couples where one partner earns below a threshold.

Maximum fortnightly rates depend on the youngest child's age:

• Youngest child under 5: $193.34 per fortnight
• Youngest child 5–18: $134.96 per fortnight

An end-of-year supplement of $459.90 per family may also apply.

For couples:

• FTB Part B is based on the secondary earner's income
• The secondary earner income free area is $6,935
• Above that, Part B reduces by 20 cents per dollar
• Primary earner income must be below $120,007

FTB Part B is not payable to couples where both partners earn above the secondary earner cutoff ($34,438 for youngest under 5; $26,828 for youngest 5–13).

Income Assignment

The FTB calculator identifies the primary earner (higher income) and secondary earner (lower income) automatically. FTB Part B uses the secondary earner's individual income, not the combined family income.

When individual taxable incomes are provided in the earnings section, those values are used directly. If only combined ATI is available, it is split equally between partners.

Care Percentage

FTB entitlement depends on the percentage of care you have for each child:

• 100% care: full rate
• 65–99%: proportional rate
• Below 35%: nil (not modelled)

Earnings Estimate — "What You Actually Keep" (Premium)

The earnings section estimates after-tax, after-childcare household income.

Tax Calculations

For each partner, the following are estimated separately:

Income tax uses 2025–26 individual tax brackets:

• $0–$18,200: nil
• $18,201–$45,000: 16 cents per dollar
• $45,001–$135,000: 30 cents per dollar
• $135,001–$190,000: 37 cents per dollar
• $190,001+: 45 cents per dollar

Medicare levy: 2% of taxable income (reduced for low-income earners between $26,000 and $32,500; nil below $26,000).

HELP/HECS repayments: Calculated on repayment income using 2025–26 thresholds. Repayment rates start at 1% at $54,436 and rise to 10% for income above $159,664.

Medicare Levy Surcharge (MLS): Applied for individuals/families above the MLS threshold without private health insurance.

For singles: 1% above $101,000; 1.25% above $118,000; 1.5% above $158,000.

For families: 1% above $202,000; 1.25% above $236,000; 1.5% above $316,000.

Net Earnings Calculation

Weekly take-home = (annual gross income − income tax − Medicare levy − HELP − MLS) ÷ 52.142857 − weekly childcare out-of-pocket

The "+1 day" modelling adds one childcare day and the corresponding income, then recalculates all taxes and CCS to show the net effect of an extra work day.

EV Novated Lease Impact (Premium)

An EV novated lease can affect CCS through reportable fringe benefits (RFBA).

How RFBA Affects ATI

Adjusted Taxable Income (ATI) includes:

• Taxable income
• Reportable fringe benefits (adjusted — RFBA × 0.51)
• Reportable super contributions
• Net investment losses

When an EV novated lease generates an RFBA, the adjusted amount (RFBA × 0.51) is added to ATI for CCS and FTB purposes.

EV Lease RFBA Calculation

The reportable fringe benefits amount (RFBA) for an EV novated lease is estimated as follows:

1. Taxable value = car value × 20% statutory rate × (days available ÷ 365) − employee contributions
2. If taxable value falls below the $2,000 reporting threshold, RFBA is nil
3. RFBA = taxable value × Type 2 gross-up rate (1.8868 for 2025–26)

The CCS-adjusted RFBA = RFBA × 0.51, which is added to family ATI.

What the Calculator Shows

The EV calculator estimates:

1. The RFBA generated by the lease
2. The adjusted RFBA amount added to ATI
3. The resulting change to family ATI
4. The effect on CCS percentage and weekly out-of-pocket
5. The combined impact on HELP repayments and Medicare Levy Surcharge where applicable

Exempt EV novated leases (for eligible electric vehicles entered into from 1 July 2022) may produce a nil or reduced FBT liability but can still generate a reportable amount that affects ATI.

Even where FBT is exempt, a reportable fringe benefits amount (RFBA) may still arise and can affect ATI-based payments like CCS and FTB.

Official Sources

Based on publicly available information from:

Child Care Subsidy

• Services Australia — Child Care Subsidy
• Services Australia — CCS percentage and income thresholds
• Services Australia — Higher CCS rate for multiple children
• Services Australia — Hourly rate caps
• Services Australia — Activity test and subsidised hours
• Services Australia — CCS balancing and withholding
• Services Australia — Updating your income estimate
• Services Australia — Adjusted Taxable Income
• DSS Family Assistance Guide — CCS legislation and rules

Family Tax Benefit

• Services Australia — Family Tax Benefit Part A
• Services Australia — Family Tax Benefit Part B
• Services Australia — FTB income thresholds

Paid Parental Leave

• Services Australia — Paid Parental Leave Pay
• Services Australia — PPL eligibility
• Fair Work Commission — National Minimum Wage

Legislation

• A New Tax System (Family Assistance) Act 1999
• A New Tax System (Family Assistance) (Administration) Act 1999
• Paid Parental Leave Act 2010

Tax, Medicare & HELP

• ATO — Individual income tax rates 2025–26
• ATO — Medicare levy
• ATO — Medicare levy surcharge
• ATO — HELP repayment thresholds and rates

EV Novated Lease & FBT

• ATO — Electric car FBT exemption
• ATO — FBT rates and thresholds (gross-up rates)
• ATO — Reportable fringe benefits

Official rules may change. Always confirm final eligibility and payments with Services Australia or the ATO.

Use the CCSChecker calculator →

Related guides

• Estimate your CCS with our calculator
• CCS percentage steps explained
• Activity hours explained
• Hourly cap explained
• Who Is Eligible for Paid Parental Leave?
• How Much Paid Parental Leave Will I Get?