Child Care Subsidy Calculator
See roughly what percentage of your childcare fees the government could cover, and what you'd likely pay out of pocket each week, based on your family income.
Your details
Estimated Child Care Subsidy
83.7%
Subsidy (per week)
$301
Out-of-pocket (per week)
$59
Full fee (per week)
$360
Uses the 2026-27 Child Care Subsidy income taper (90% up to $88,520, reducing 1 percentage point per $5,000 up to $538,520, then 0%) and hourly rate caps effective 6 July 2026. Models one CCS-eligible child only, doesn't include the higher rate that still applies for a second or younger child aged 5 or under in care, the activity test in detail, or Additional Child Care Subsidy for families experiencing hardship. Estimates only, not financial advice, confirm your exact entitlement on the Services Australia CCS estimator or myGov.
How to use this calculator
- 1. Enter your and your partner's combined taxable income for the year, this is the main thing that decides your subsidy percentage.
- 2. Choose centre-based day care, family day care or outside school hours care (OSHC), each has its own hourly rate cap.
- 3. Enter what your provider charges per hour, and how many hours of care you use per week.
- 4. See your estimated CCS percentage, the subsidy amount, and what you'd likely pay out of pocket each week and fortnight.
What the Child Care Subsidy actually is
The Child Care Subsidy (CCS) is a payment the Australian Government makes directly to your childcare provider to bring down your fees, rather than a lump sum paid to you. How much you get depends mostly on your family's combined income, families on lower incomes get a higher percentage of their fees covered, up to a maximum of 90%, and that percentage gradually decreases as income rises until it reaches zero for very high income families. The subsidy also only applies up to an hourly rate cap set by the government for each type of care, if your provider charges more than the cap, you pay that extra amount yourself on top of whatever the taper works out to.
Why your estimate might differ from what you actually get
This calculator models a single child in care, using a simplified, smooth version of the government's income taper. In reality, a few things can push your real subsidy higher or lower than this estimate. If you have more than one child aged five or under in care at the same time, the government pays a higher rate for the second and any younger children, on top of your income-tested rate. Families doing little or no work, study or job hunting are still guaranteed a minimum number of subsidised hours per fortnight under the "3 Day Guarantee", while families doing more can access more hours, none of that hours entitlement is worked out here, this tool assumes you enter the hours you actually plan to use. And families going through real hardship may be eligible for a separate top-up payment called Additional Child Care Subsidy, which also isn't modelled. Use this tool to get a feel for the numbers, then check the Services Australia CCS estimator or your myGov account for what you're actually entitled to before making decisions.
FAQ
What counts as "family income" for the Child Care Subsidy?
It's your and your partner's combined adjusted taxable income for the financial year, which includes taxable income plus things like reportable fringe benefits, reportable super contributions, and net investment or rental losses added back. It's an estimate you give Services Australia, and it gets reconciled against your actual tax return afterwards, so it's worth keeping your estimate realistic to avoid an underpayment or a debt.
What happens if my childcare fees are higher than the hourly rate cap?
The government only subsidises fees up to the hourly rate cap for your type of care, for 2026-27 that's $15.19/hour for centre-based day care, $14.08/hour for family day care, and $13.30/hour for outside school hours care. Any amount your provider charges above the cap comes entirely out of your own pocket, on top of the percentage you're not subsidised for.
Do I get a higher subsidy for my second child in care?
Often, yes. If you have more than one child aged five or under in child care at the same time, the government generally pays your income-tested rate for the eldest of those children, and an extra 30 percentage points (capped at a 95% total rate) for the second and any younger children, subject to a higher income cutoff for that boost. This calculator only estimates the rate for a single child, so if this applies to you, your real household subsidy is likely higher than the figure shown here for your younger child or children.
How many hours of subsidised care am I entitled to?
Since January 2026, every family that's eligible for CCS is guaranteed a minimum of 72 subsidised hours per fortnight (about 3 standard days a week), regardless of how much you work, study or look for work. You can access up to 100 hours a fortnight if you and your partner combined do more than 48 hours a fortnight of recognised activity, if your child is Aboriginal or Torres Strait Islander, or if you qualify for an exemption. This calculator doesn't work out your entitlement, just enter the hours you plan to actually use.
Does this calculator account for every family's situation?
No. It's a simplified estimate for a typical family with one child in approved care. It doesn't model multiple children in care at once, Additional Child Care Subsidy for families facing hardship or transitioning off income support, grandparent carers, or in-home care. It also assumes a smooth income taper rather than the exact step-by-step calculation Services Australia uses, so treat the result as a ballpark, not a guarantee.
Why is the subsidy paid to my provider and not to me?
CCS is paid as a fee reduction directly to your approved childcare provider, who then charges you the difference (the "gap fee" or out-of-pocket amount). This is why your invoice usually already shows the subsidised price, rather than you paying the full fee and getting reimbursed separately.
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Disclaimer
This calculator uses the 2026-27 Child Care Subsidy income taper, effective 6 July 2026 (90% maximum rate for family income up to $88,520, reducing 1 percentage point for every $5,000 of income up to $538,520, then 0%), modelled as a smooth linear taper rather than Services Australia's exact step-by-step calculation, alongside the 2026-27 hourly rate caps. It estimates a single CCS-eligible child only and doesn't model the higher subsidy rate that can apply to a second or younger child aged five or under in care, the detailed activity test, or Additional Child Care Subsidy for hardship, income support transition, or grandparent carers. Figures were cross-referenced across multiple sources including Department of Education rate announcements and independent CCS-tracking sites, as government sites could not be fetched directly at the time of writing. This tool provides estimates only, is not financial advice, and doesn't replace your exact assessment from Services Australia or myGov.