Child Care Subsidy (CCS) Calculator: Rates, Income Thresholds & Rebate Guide 2025–26
Calculate your Child Care Subsidy for 2025–26. Find out CCS percentage rates by income, activity test hours, approved childcare types, and how the old childcare rebate was replaced.
What is the Child Care Subsidy (CCS)?
The Child Care Subsidy (CCS) is an Australian Government payment that reduces the out-of-pocket cost of approved child care. It replaced the old Child Care Benefit and Child Care Rebate in July 2018, combining both into a single, simpler subsidy. CCS is paid directly to your child care provider, reducing the fees you pay. The subsidy covers a percentage of the actual fee charged or the hourly fee cap (whichever is lower), with the percentage determined by your family income. For the 2025–26 financial year, families earning up to $83,280 receive the maximum subsidy of 90%, while families earning over $539,900 receive no subsidy. The subsidy applies to approved child care services including long day care, family day care, outside school hours care (OSHC), and in-home care. Occasional care and some other arrangements may also qualify. Nannies and au pairs are generally not covered unless they are part of an approved in-home care arrangement. To receive CCS, you must use an approved child care service, meet the residency requirements, and satisfy the activity test (or be exempt from it). Around 1 million Australian families receive CCS, with the government spending approximately $13 billion per year on the program.
CCS subsidy rates by family income (2025–26)
Your CCS percentage is determined by your family's combined adjusted taxable income. The rates for 2025–26 are: **$0 – $83,280:** 90% subsidy **$83,281 – $173,163:** Subsidy tapers from 90% down to 50%. For every $3,000 increase in income above $83,280, the subsidy drops by approximately 1 percentage point. **$173,164 – $262,453:** 50% subsidy **$262,454 – $352,453:** Subsidy tapers from 50% down to 20%. For every $3,000 increase in income, the subsidy drops by approximately 1 percentage point. **$352,454 – $539,900:** 20% subsidy **Above $539,900:** 0% subsidy (no CCS) The income thresholds are indexed annually. From July 2023, the Government increased the maximum subsidy from 85% to 90% and removed the annual cap for families earning between $190,015 and $530,000, making childcare significantly more affordable for middle-income families. **Hourly fee caps (2025–26):** - Centre-based day care (long day care): $15.04 per hour - Family day care: $13.73 per hour - Outside school hours care: $13.11 per hour - In-home care: $36.24 per hour If your child care provider charges more than the hourly cap, CCS only covers the percentage up to the cap — you pay the gap plus the amount above the cap.
CCS activity test: how many hours of subsidised care you get
The activity test determines how many hours of subsidised child care you can access per fortnight. Both parents (or the single parent) must meet the activity requirements. **Activity hours per fortnight → Subsidised care hours per fortnight:** - 0–8 hours of activity: 24 hours of subsidised care (or 36 hours if income is below $83,280) - 8–16 hours: 36 hours - 16–48 hours: 72 hours - More than 48 hours: 100 hours Recognised activities include paid work, self-employment, looking for work, volunteering, studying, training, and some other approved activities. If your hours fluctuate, you can use an average over a four-week period. For couples, the activity test is based on the parent with the fewer activity hours. For example, if one parent works 40 hours per fortnight and the other works 10 hours, the family qualifies for 36 subsidised hours per fortnight. **Exemptions:** Some families are exempt from the activity test. Aboriginal and Torres Strait Islander children, children from families experiencing financial hardship, and grandparent carers can access subsidised care regardless of the activity test. Children in the year before school are also eligible for 36 hours per fortnight without meeting the test.
How the old childcare rebate was replaced
Before July 2018, child care assistance was split into two separate payments: Child Care Benefit (CCB) and Child Care Rebate (CCR). The system was widely criticised as confusing and inequitable. Child Care Benefit was income-tested and covered a set number of hours per week. Child Care Rebate covered 50% of out-of-pocket costs after CCB, up to an annual cap of $7,613 per child. Many families found it difficult to understand how much assistance they would actually receive. The Child Care Subsidy replaced both payments with a single streamlined system. Key improvements include: **Higher subsidy for low-income families:** The old CCB maximum was around $4.22 per hour. Under CCS, low-income families receive 90% of the fee cap, which translates to a much higher subsidy per hour. **No annual cap for most families:** The old CCR had a $7,613 annual cap per child. Under CCS, there is no annual cap for families earning under $539,900 (from July 2023 — previously the cap applied to families earning $190,015–$530,000). **Simpler income test:** Instead of two separate income tests, CCS uses a single sliding scale based on family income. If you are searching for 'childcare rebate' or 'child care benefit', these payments no longer exist — the Child Care Subsidy is what you need to apply for. The terminology is still widely used colloquially, but the official program is CCS.
How to apply for Child Care Subsidy
You apply for CCS through your myGov account linked to Centrelink. You do not apply through your child care provider — the assessment is done by Centrelink based on your income and activity levels. **Steps to apply:** 1. Create or sign into myGov and link your Centrelink account. 2. Go to 'Make a claim' and select 'Families'. 3. Complete the CCS claim, including income estimates, activity details, and your children's information. 4. Confirm your child's enrolment with an approved child care service (the service will send a Complying Written Arrangement through the system). 5. Centrelink will assess your claim and notify you of your CCS percentage and approved hours. **Important tips:** - Provide an accurate income estimate. If you underestimate your income, you will receive too much CCS and have to repay the excess at the end of the financial year via a reconciliation process. - Update your income estimate whenever your circumstances change (pay rise, new job, partner starts or stops working). - If you have a partner, both of you need to provide activity details. - Your CCS starts from the date you lodge your claim or the date your child starts care, whichever is later. It is not backdated, so apply before your child starts attending. CCS is paid directly to the child care provider, who then charges you the remaining gap fee. You will see the subsidy amount on your fortnightly fee statement from the provider.
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General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.
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