Child Care Subsidy calculator (2026–27)
The Child Care Subsidy pays part of your child care fees straight to the service. Your percentage depends on family income, the subsidy applies to the lower of the service's hourly fee and the hourly rate cap for the type of care, and from 5 January 2026 every family gets at least 72 subsidised hours a fortnight. Enter the fees your service charges and see what is left for you to pay.
Child 1, aged 1, Centre based day care
Where the fee is above the hourly rate cap, the subsidy applies to the cap and you pay the difference.
5% of the subsidy is withheld until your payments are balanced after the financial year.
Income is the family's adjusted taxable income for the financial year. Fees and session lengths vary by service; use the figures on your enrolment offer.
How your percentage is worked out
Families with income up to $88,520 get 90% of the capped fee. Above that the percentage drops by 1 point for every $5,000 of income, reaching nil at $538,520. The subsidy is worked out on the lower of what your service charges per hour and the hourly rate cap, so any fee above the cap is yours to pay in full.
Source: Your income can affect Child Care Subsidy (Services Australia).
The higher rate for a second child
Families earning under $370,727 with more than one child aged 5 or under get a higher rate for the younger child or children: 95% up to $146,437, tapering to 80% at $191,437, 80% up to $270,727, then tapering to 50% at $360,727 and holding there until $370,727. The eldest child aged 5 or under stays on the standard rate, and the higher rate does not apply to in home care.
Source: Higher Child Care Subsidy for more than one child (Services Australia).
Hourly rate caps (2026–27)
| Type of care | Below school age | School age |
|---|---|---|
| Centre based day care | $15.19 | $13.30 |
| Family day care | $14.08 | $14.08 |
| Outside school hours care | $15.19 | $13.30 |
| In home care | $41.31 | $41.31 |
Source: Hourly rate caps by type of care (Services Australia).
Hours, withholding and balancing
Since 5 January 2026 every eligible family gets 72 subsidised hours a fortnight (the 3 Day Guarantee) with no activity test. Where both parents do more than 48 hours of recognised activity a fortnight, it is 100 hours. Services Australia withholds 5% of your subsidy during the year and settles the difference when your payments are balanced after you lodge a tax return.
Source: Recognised participation and the 72-hour guarantee (Services Australia).
Questions about the Child Care Subsidy
Do I still need to meet an activity test?
Not for the first 72 hours. Since 5 January 2026 the 3 Day Guarantee gives every eligible family 72 subsidised hours a fortnight. Both parents doing more than 48 hours of work, study, training, volunteering or job search a fortnight lifts it to 100 hours, and families with an Aboriginal or Torres Strait Islander child get 100 hours regardless.
What is the hourly fee if my service charges by the day?
Divide the daily fee by the length of the session. A $165 day for a 10 hour session is $16.50 an hour. The subsidy is paid on the hours of the session, not the hours your child is there.
Why is 5% withheld?
Services Australia keeps back 5% of your subsidy during the year as a buffer against overpayment. After the financial year, once you and your partner have lodged tax returns, your actual income is compared with your estimate and the withheld amount is paid to you or used to cover any overpayment.
Does my child need to be immunised?
Yes. The child must meet the immunisation requirements: up to date with the National Immunisation Program schedule, on a catch-up schedule, or with a medical exemption. The subsidy stops if the record is not brought up to date within the time allowed.
When should I claim?
Claim through Centrelink in myGov once you have a confirmed place; the service sends an enrolment notice for you to confirm. The subsidy can be backdated only for a short period, so claim before care starts where you can. From the approved start date the service takes the subsidy off your fees and bills you the rest.
Rates current for 2026–27 (Services Australia); last reviewed 3 November 2026.