The 3-Day Childcare Guarantee is Live: 100,000+ Families Now Qualify

From 5 January 2026, the activity test for the first 72 hours of subsidised childcare per fortnight was removed. This is the biggest change to the Child Care Subsidy (CCS) since the system was overhauled in 2018.

What this means in plain language: every eligible family now gets up to 36 hours per week (72 hours per fortnight) of subsidised childcare — regardless of whether the parents are working, studying, volunteering, or doing anything at all.

Previously, the activity test meant that if you weren't working or studying at least 8 hours per fortnight, you got zero subsidised hours. If you worked 8-16 hours per fortnight, you got 36 hours. The test was complex, confusing, and locked out families who needed childcare the most — including stay-at-home parents, people looking for work, carers, and people with health conditions.

The government estimates that more than 100,000 families are newly eligible for subsidised childcare as a result of this change, with approximately 200,000 children gaining access to early education they didn't have before.

The 3-day guarantee specifically benefits families who were previously excluded or limited by the activity test:

• Stay-at-home parents: You now get 36 hours/week of subsidised care even if neither parent is working. This is huge for families where one parent is the primary carer.
• Job seekers: If you're looking for work, you no longer need to prove activity hours to get childcare. This removes one of the biggest barriers to job seeking for parents.
• Parents with health conditions: Previously you needed medical certificates and exemption paperwork. The 72 hours is now automatic.
• Carers: If you're caring for a family member with a disability or illness, you automatically get the 3-day guarantee.
• Single parents re-entering the workforce: This is particularly impactful. Getting childcare sorted before you find a job was almost impossible under the old system.

The activity test still exists for hours above 72 per fortnight. If you want more than 36 hours/week of subsidised care, you'll need to meet the activity test for the additional hours. But 3 days per week covers most families' needs for early education and gives parents breathing room.

Here's the new structure:

• 0-72 hours/fortnight (36 hours/week): No activity test. Every eligible family gets this automatically.
• 73-100 hours/fortnight: Activity test applies — both parents need 8-48 hours/fn of recognised activity (work, study, volunteering, looking for work)
• More than 100 hours/fortnight: Both parents need more than 48 hours/fn of recognised activity

In practice, most childcare centres operate on a 10-12 hour day. So 36 hours per week typically means 3 full days of care. If your child attends a centre that offers 12-hour sessions, that's exactly 3 days (36 hours). For centres with 10-hour sessions, it's 3.6 sessions — so you'd get 3 days with a little buffer.

For families with both parents working full-time, the activity test at the higher tiers works the same as before. The change only affects the base 72 hours.

The Child Care Subsidy covers a percentage of your childcare fees, based on your combined family income:

• Up to $83,280: 90% subsidy (maximum)
• $83,281 - $173,163: Subsidy tapers from 90% down to 50%
• $173,164 - $352,453: 50% subsidy
• $352,454 - $542,930: Subsidy tapers from 50% down to 0%
• Above $542,930: No subsidy

The subsidy is calculated against an hourly fee cap, not your actual fees. For centre-based day care, the cap is $15.00/hour in 2026. If your centre charges more than the cap, you pay the difference plus your gap fee.

Example: A family earning $100,000 with one child in care 3 days/week

• Subsidy rate: approximately 77%
• Centre fee: $140/day ($14/hour for 10 hours)
• CCS covers: $107.80/day
• Family pays: $32.20/day ($96.60/week for 3 days)

Use our Child Care Subsidy Calculator to get your exact out-of-pocket cost based on your family income and childcare fees.

If you're already receiving CCS, the 72-hour guarantee should have been applied automatically from 5 January 2026. Check your Centrelink online account to confirm your subsidised hours have increased.

If you're new to CCS, here's how to claim:

1. Create or link your myGov account to Centrelink at my.gov.au
2. Complete a CCS assessment: Go to Centrelink online → Payments and Claims → Make a Claim → Families
3. Provide your details: Family income estimate, your child's details, and which childcare service they attend (or will attend)
4. Enrol your child: Your childcare provider will complete a Complying Written Arrangement (CWA) — basically confirming your child's enrolment
5. CCS starts: Once the enrolment is confirmed, CCS is applied directly to your childcare fees. You only pay the gap.

Processing typically takes 1-2 weeks. CCS is paid directly to the childcare provider, who reduces your fees accordingly — you don't receive a separate payment into your bank account (unless you have a reconciliation balance owing at end of financial year).

Here's what 3 days of childcare costs different families under the new guarantee (centre-based care at $140/day):

• Family income $60,000 — CCS rate 90%: Out-of-pocket $14/day, $42/week for 3 days
• Family income $90,000 — CCS rate ~82%: Out-of-pocket $25.20/day, $75.60/week for 3 days
• Family income $120,000 — CCS rate ~68%: Out-of-pocket $44.80/day, $134.40/week for 3 days
• Family income $160,000 — CCS rate ~53%: Out-of-pocket $65.80/day, $197.40/week for 3 days
• Family income $250,000 — CCS rate 50%: Out-of-pocket $70/day, $210/week for 3 days

For a family on $60,000, three days of professional early childhood education now costs just $42 per week. Before this change, if neither parent was working, they would have received zero subsidised hours and faced the full $420/week fee.

That's the real impact of this policy: early education is now genuinely accessible for the families who need it most. If you haven't claimed yet, there's no reason to wait. Check your subsidy rate here and contact your local childcare centre about availability.