Suggest a calculator or tool you wish existed. We read every suggestion and build the most-requested ones — leave your email and we'll tell you when it's live.
The Child Care Subsidy (CCS) is paid directly to your provider and reduces the fee you're invoiced. Three things set the amount: your family income, the hourly rate cap for your type of care, and the hours of subsidised care you're entitled to.
Families earning up to $88,520 receive the maximum 90% subsidy. Above that, the rate falls by 1% for every $5,000 of family income, reaching zero at $538,520. These thresholds are indexed and rose from 6 July 2026. Because the taper is gradual, a modest pay rise never causes a cliff — but across a full year the cumulative effect on a family using full-time care is significant.
The subsidy is calculated on the lower of your provider's actual hourly fee and the government cap. For 2026-27 the caps are $15.19 for centre-based day care (below school age), $14.08 for family day care and $13.30 for outside school hours care. If your centre charges $16.50 an hour, the subsidy is worked out on $15.19 — so the gap above the cap is entirely yours, on top of your normal out-of-pocket share.
Subsidised hours were historically set by an activity test based on work, study or volunteering. Under the 3-Day Guarantee, eligible families now receive at least three days a week of subsidised care regardless of activity level — a significant change for families with irregular or no paid work. Higher activity levels still unlock more hours.
A family on $108,520 using centre-based care at $15.19 an hour for 40 hours a week is exactly $20,000 above the threshold: 90% minus 1% for each $5,000 — 86%. That's roughly $13.06 an hour subsidised, leaving about $2.13 an hour out of pocket, or around $85 a week for full-time care before any above-cap fees.
Between the $5,000 marks the exact percentage is worked out by Services Australia, so treat a figure taken mid-band as an estimate and confirm your rate in your Centrelink online account.
Why is 5% withheld? Services Australia withholds a portion of CCS through the year to reduce the chance of an overpayment, and balances it after your income is confirmed at tax time.
Do I get more for multiple children? Families with more than one child aged 5 or under can receive a higher rate for younger children — check your entitlement, as it's applied automatically once your details are correct.
What if my income estimate is wrong? Update it in your Centrelink online account as soon as it changes; an out-of-date estimate is the most common cause of a debt at reconciliation.
This calculator uses current published rates from Australian government and regulator sources. The result is an estimate for general guidance — it does not constitute personal financial advice. For decisions about your circumstances, consult a registered financial adviser, tax agent, or other professional. See editorial standards for how DecisionLab sources and updates its calculator data.