What income do I get 90% Child Care Subsidy at in 2026-27?

Families with adjusted taxable income of $88,520 or less get the maximum 90% CCS in 2026-27. Above $88,520 the percentage drops by 1 percentage point for every $5,000 of income, reaching 0% at $538,520. Second and younger children aged 5 or under can get up to 95% while family income is under $370,727. Source: Services Australia, checked 20 July 2026.

How many subsidised hours do I get under the 3-Day Guarantee?

From 5 January 2026 the activity test was replaced by the 3-Day Guarantee: every CCS-eligible family gets at least 72 subsidised hours per fortnight (3 days a week). You get 100 hours per fortnight if you and your partner each do more than 48 hours of recognised participation (work, study, training, volunteering) a fortnight, if the child is Aboriginal and/or Torres Strait Islander, or if you receive ACCS. Couples are assessed on the lower partner's participation.

What are the CCS hourly rate caps for 2026-27?

For children below school age: Centre Based Day Care and Outside School Hours Care $15.19 per hour, Family Day Care $14.08. For school-age children: Centre Based Day Care and Outside School Hours Care $13.30, Family Day Care $14.08. In Home Care is $41.31 per family. Your CCS percentage applies to the lower of your actual fee and the cap — you pay 100% of any fee above the cap.

Why does Centrelink withhold 5% of my Child Care Subsidy?

Services Australia withholds 5% of your CCS each fortnight as a buffer against an overpayment. After you lodge your tax return, your payments are balanced against your actual adjusted taxable income. If your estimate was accurate you get the withheld amount back; if you underestimated, it offsets the debt. You can vary the withholding percentage in your Centrelink online account.

What income counts for the Child Care Subsidy?

CCS uses adjusted taxable income: taxable income PLUS reportable fringe benefits, reportable superannuation contributions (salary sacrifice or personal deductible contributions), net investment losses (including negative gearing), and certain foreign and tax-exempt income. These amounts are added on top of taxable income — forgetting them is the most common cause of CCS debts at reconciliation.

Child Care Subsidy Calculator

Estimate your CCS percentage, subsidised hours under the 3-Day Guarantee, and your real out-of-pocket childcare cost for 2026-27. Includes the adjusted-taxable-income add-backs most calculators skip.

Last verified: 20 July 2026

Family taxable income estimate*

Combined taxable income for you and your partner for 2026-27, BEFORE the add-backs below.

CCS uses your adjusted taxable income — the three amounts below are added on top of taxable income. Missing them is the most common cause of CCS debts.

Reportable fringe benefits (add-back)

Gross amount from your income statement — e.g. a novated lease or salary-packaged benefits. Counted as income for CCS.

Reportable super contributions (add-back)

Salary-sacrificed super and personal contributions you claim a tax deduction for. Employer SG is NOT included.

Net investment losses (add-back)

Negative gearing losses on rental property or financial investments are added BACK to your income for CCS.

Type of care

Sets the hourly rate cap your CCS percentage applies to.

Is this child school age?

Below school age

School age

2nd or younger child aged 5 or under

Higher CCS (up to 95%) applies if an older sibling aged 5 or under also gets CCS and family income is under $370,727.

Hourly fee your service charges*

$/hour

Daily session fee divided by session hours — e.g. $145 for a 10-hour session = $14.50/hour.

Hours of care per fortnight*

hrs

Session hours count, not attendance hours. Two 10-hour days a week = 40 hours a fortnight.

Days of care per fortnight

days

Used to show your out-of-pocket cost per day. 3 days a week = 6.

Recognised participation hours per fortnight

hrs

Work, study, training, volunteering. Couples: use the LOWER partner's hours. More than 48 lifts you from 72 to 100 subsidised hours.

Aboriginal and/or Torres Strait Islander child

First Nations children get 100 subsidised hours per fortnight regardless of participation.

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

Child Care Subsidy Calculator

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