What is the CCS income threshold for 2026–27?

For 2026–27, families with combined income up to $88,520 get the maximum 90% subsidy rate. The rate then reduces by 1 percentage point for every $5,000 of income above that, reaching 0% at $538,520.

How does the higher CCS rate work for a second child?

If you have more than one child aged 5 or under in approved care at the same time, the second and each subsequent child gets a higher rate — up to 95% for combined income up to $146,437 in 2026–27, tapering down and cutting out entirely above $370,727.

Does the activity test still apply to Child Care Subsidy?

No. The activity test was abolished from 5 January 2026 and replaced by the 3 Day Guarantee. Families no longer need to meet a minimum activity level to access subsidised care, though more hours of activity can unlock the higher 100-hour tier.

§ — Family

How much Child Care Subsidy can your family get?

Enter your combined family income to estimate your CCS rate, the higher rate for a second child under 5 in care, and your subsidised hours under the 3 Day Guarantee.

2026–27 rates·Source: Services Australia·Read · 5 min

Your details

Combined family income

Children aged 5 or under in care

Higher hours tierFirst Nations child, 48+ hrs/fortnight recognised activity, an exemption, or ACCS.

Your result · 2026–27

Standard CCS rate

83.7%

Applies to your first child in care. Combined family income of $120,000 against the 2026–27 thresholds.

Subsidised hours72 hrs / fortnight

2026–27 standard CCS rate table

Combined family income	CCS rate
Up to $88,520	90%
$88,521 – $538,519	Tapers 1% per $5,000
$538,520 or more	0%

Source: Services Australia / Family Assistance Guide · 2026–27, effective 6 July 2026

How the Child Care Subsidy works

The Child Care Subsidy (CCS) is paid directly to your child care provider to reduce your out-of-pocket fees. Your rate is set by your combined family adjusted taxable income (ATI) for the financial year.

Families earning $88,520 or less get the maximum 90% subsidy in 2026–27. Above that, the rate steps down by 1 percentage point for every $5,000 of extra income, reaching 0% at $538,520.

If you have more than one child aged 5 or under in approved care at the same time, the second and each subsequent young child gets a higher rate — up to 95% — which uses its own separate income test and cuts out above $370,727.

From 5 January 2026, the old activity test was replaced by the 3 Day Guarantee. Every CCS-eligible family now gets a minimum of 72 subsidised hours per fortnight (3 days a week) regardless of work or study activity.

2026–27 higher CCS rate (2nd+ child under 5)

Combined income	Rate
Up to $146,437	95%
$146,437 – $191,437	Tapers to 80%
$191,437 – $270,727	80%
$270,727 – $360,727	Tapers to 50%
$360,727 – $370,727	50%
Above $370,727	Standard rate applies

Source: Services Australia · 2026–27, effective 6 July 2026

The 3 Day Guarantee: subsidised hours explained

Until 5 January 2026, how many hours of subsidised care your family could access each fortnight depended on an "activity test" — hours of work, study, training or other recognised activity for both parents. That system has now been replaced.

Every CCS-eligible family now gets a guaranteed minimum of 72 hours of subsidised care per fortnight — equivalent to 3 days a week — regardless of how much parents work or study.

Families can access a higher tier of 100 hours per fortnight if they: care for a First Nations child, have more than 48 hours per fortnight of recognised participation (work, study or similar), have an exemption or exceptional circumstances, or receive Additional Child Care Subsidy (child wellbeing, temporary financial hardship, or grandparent payments).

Families who already received CCS did not need to do anything — the 72-hour minimum applied automatically from 5 January 2026.

§ Letters & replies

CCS, answered.

Common questions about the Child Care Subsidy in Australia.

What is the Child Care Subsidy?+ open

The CCS is a federal payment that reduces approved child care fees. It's paid directly to your provider as a percentage of the fee (up to an hourly rate cap), based on your combined family income and, since January 2026, a guaranteed minimum of subsidised hours.

What income threshold applies for 2026–27?+ open

Families earning $88,520 or less get the maximum 90% rate. It reduces by 1 percentage point for every $5,000 of income above that, reaching 0% at $538,520.

How does the higher rate for a second child work?+ open

If you have 2 or more children aged 5 or under in approved care at the same time, the second and each subsequent young child gets a higher rate — up to 95% — under its own separate income test that cuts out above $370,727.

Is there still an activity test?+ open

No. The activity test was abolished from 5 January 2026 and replaced by the 3 Day Guarantee, which gives every CCS-eligible family a minimum of 72 subsidised hours per fortnight regardless of activity.

How do I get 100 hours instead of 72?+ open

You qualify for the 100-hour higher tier if you care for a First Nations child, have more than 48 hours per fortnight of recognised work/study activity, have an exemption or exceptional circumstances, or receive Additional Child Care Subsidy.

Is CCS based on taxable income or something else?+ open

CCS uses combined family adjusted taxable income (ATI), which includes taxable income plus items like reportable fringe benefits, reportable super contributions, and net investment losses — not just your salary.

Related income calculators

§ — Income

Tier	Hours / fortnight
Standard (all families)	72 hrs
Higher tier (activity / exemption)	100 hrs

How much Child Care Subsidy can your family get?

How the Child Care Subsidy works

The 3 Day Guarantee: subsidised hours explained

CCS, answered.

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