For many Australian parents, childcare costs can feel overwhelming—especially when trying to balance work, study, and family life. The Child Care Subsidy (CCS) helps make approved childcare more affordable, but the rules are changing in 2026.
This parent-friendly guide explains:
- What CCS is
- Current CCS rates (2025–2026)
- How to apply step-by-step
- What the new 3-Day Child Care Subsidy Guarantee (2026) means for your family
- Common parent questions
- How Beginnings Early Learners supports your CCS journey
What is Child Care Subsidy (CSS)?
The Child Care Subsidy is financial support from the Australian Government that reduces your out-of-pocket childcare fees. The government pays your subsidy directly to your approved childcare provider, and you pay only the “gap”.
Your CCS percentage depends on:
- Combined family income
- Hours of recognised activity (work, study, volunteering, job-seeking)
- Number of children in care
- Type of service you use
Families with lower incomes can receive up to 90% subsidy, ensuring access to quality early childhood education whether parents work full-time, part-time, study, volunteer, or job-seek.
CCS Rates and Income Thresholds for 2025–2026
As of July 7, 2025, here’s how the subsidy works:
Maximum Hourly Rate Caps
- Centre-based day care: $14.63 per hour
- Outside school hours care: $12.81 per hour
Income-Based Subsidy Percentages
- Families earning up to $85,279 receive a 90% subsidy
- For incomes between $85,279 and $535,279, the subsidy is reduced by 1% for every additional $5,000 earned
- Families earning $535,279 or more are not eligible for CCS
Higher Subsidy for Multiple Children
Families with more than one child aged 5 or under receive higher rates (up to 95%) for their second and younger children. This applies to families earning up to $367,563 per year, and your children don’t need to attend the same service to receive this benefit.
How to Apply for Child Care Subsidy (Step-by-Step for Parents)
1. Check Your Eligibility
You may be eligible if:
- Your child is 13 or under and not yet in secondary school
- You use an approved childcare provider (like Beginnings Early Learners)
- You are responsible for childcare fees
- You meet residency and immunisation requirements
2. Create or Log In to Your MyGov Account
Link your MyGov to Centrelink—all CCS applications are managed here.
3. Submit Your CCS Application
In MyGov:
- Go to Make a Claim
- Select Families
- Choose Apply for Family Assistance Payments
You’ll provide information on:
- Family income
- Parent activities (work, study, volunteering)
- Children in care
4. Prepare Your Supporting Documents
Have ready:
- Proof of identity
- Immunisation records from the Australian Immunisation Register
- Recent payslips or proof of income, and
- Your child’s birth certificate
5. Complete the Activity Test
This determines subsidised hours. Recognised activities include:
- Paid work
- Study or training
- Volunteering
- Job-seeking
Centrelink uses the lower activity level between parents.
6. Enrol at Beginnings Early Learners
Contact our Alfredton or Sunbury centre to enrol your child. We’ll provide our service provider number for your MyGov enrolment.
7. Confirm the Enrolment
You’ll receive a prompt from Centrelink to review and confirm your enrolment.
Parent tip: Apply 4–6 weeks before your child’s start date so your CCS is active from day one.
What Is Changing in 2026? – The 3-Day Child Care Subsidy Guarantee
What is the 3 Day Guarantee?
From 5 January 2026, all CCS-eligible families will receive at least three days (36 hours/week or 72 hours/fortnight) of subsidised childcare—regardless of activity hours.
The government is investing $426.7 million over five years to support this.
Why Is the Activity Test Changing?
Since 2018, parents needed to work, study, or volunteer to get subsidised hours. This meant thousands of children—especially from low-income households—missed out.
From 2026:
- Activity test barriers are reduced
- Families who previously received only 36 hours/fortnight will now receive 72 hours automatically
- No need to resubmit applications
- Ideal for part-time workers, stay-at-home parents, or job seekers
More than 126,000 children are expected to gain access to early learning.
Who Benefits Most?
The 3 day child care subsidy particularly helps:
- Families where one parent works part-time or doesn’t work
- Families where both parents are looking for work
- Families experiencing temporary changes in circumstances
- Low-income families previously locked out of early learning
Special Provisions for First Nations Families
Families caring for Aboriginal or Torres Strait Islander children receive even more support—100 hours of subsidised care per fortnight for each First Nations child, regardless of parents’ activity levels.
Need More Than 72 Hours?
Families requiring more hours can still access 100 hours per fortnight if each parent participates in recognised activities for more than 48 hours per fortnight.
What Stays the Same in 2026?
- Subsidy % still depends on combined family income
- Gap fees continue
- Hourly rate caps apply
- Higher-child subsidy still available
- 8% withholding stays to prevent overpayment
Additional Support Available
Families experiencing financial hardship may be eligible for the Additional Child Care Subsidy (ACCS), providing extra support when you have a significantly reduced ability to pay childcare fees. Apply through Centrelink and MyGov.
Getting Ready for 2026
If you’re already receiving CCS, you don’t need to do anything. From January 5, 2026, families entitled to fewer than 72 hours per fortnight will automatically see their entitlement increase. Services Australia handles this transition based on your existing information.
Managing Your CCS Effectively:
- Keep income estimates updated to avoid over- or underpayments
- Reconfirm your income annually
- Update details promptly if circumstances change
- Check your CCS balance regularly
How Beginnings Early Learners Supports Parents
At Beginnings Early Learners, we are proud to be an approved CCS provider, making the process smooth for families in Alfredton and Sunbury. Our experienced teams can help you understand your entitlements, guide you through applications, and answer questions about the significant 2026 changes. As an approved provider, we handle the administrative side—reporting attendance and fees directly to Services Australia, which means less paperwork for you.
Ready to learn more? Book a tour or contact our Alfredton or Sunbury centres today. We’re here to help you every step of the way.