How much Child Care Subsidy will I get in 2026-27?

Your subsidy percentage depends on your combined family income: 90% if you earn up to $88,520, then it drops by 1 percentage point for every $5,000 above that, reaching 0% at $538,520 or more. That percentage is applied to the lower of your actual hourly fee or the government's hourly rate cap, for the hours of care you're entitled to. These figures apply from 6 July 2026.

What is the 3 Day Guarantee?

From 5 January 2026 the old activity test was replaced. Every eligible family now gets at least 72 hours of subsidised care per fortnight — about 3 days a week — regardless of how much work or study they do. Families where each parent does more than 48 hours of recognised participation per fortnight, or who have a valid exemption, can get 100 hours. Aboriginal and Torres Strait Islander children automatically get 100 hours.

How does the higher subsidy for a second child work?

If you have more than one child aged 5 or under in care and your combined income is under $370,727, your second and younger children get a higher subsidy — up to 95%. The higher rate uses its own income test: 95% up to $146,437, easing to 80% at $191,437, holding at 80% to $270,727, easing to 50% at $360,727, then withdrawing entirely at $370,727. In Home Care does not attract the higher rate.

What income should I enter?

Enter your and your partner's combined adjusted taxable income for the year — not your gross salary. Adjusted taxable income includes taxable income plus things like reportable fringe benefits, reportable super contributions and net investment losses. Using gross salary will overstate your subsidy.

Why is my out-of-pocket cost higher than the gap fee?

Services Australia withholds 5% of your subsidy each fortnight to reduce the chance of an overpayment. That means a little less subsidy is paid to your provider during the year, so you pay slightly more out of pocket. The withheld amount is reconciled after you confirm your income at tax time. The out-of-pocket figure in this calculator already includes the 5% withholding.

Does this calculator include everything that affects my subsidy?

No. It estimates the standard and higher Child Care Subsidy only. It does not include the Additional Child Care Subsidy (ACCS), state or territory programs such as free-preschool initiatives, or eligibility gates like immunisation requirements. Your official entitlement is determined by Services Australia using your verified income.

Child Care Subsidy Calculator — Australia (FY2026-27)

Estimate your Australian Child Care Subsidy for the FY2026-27 year. Enter your combined family income and each child's care details to see your subsidy percentage, gap fee and real out-of-pocket cost — including the 3 Day Guarantee hours and the higher rate for a second child aged 5 or under.

Combined family income

Your and your partner's combined adjusted taxable income for the year — not gross salary.

Each parent does more than 48 hours of recognised participation per fortnight (work, study, etc.), or has an exemption — unlocks 100 subsidised hours instead of the 72-hour guarantee.

Child 1

Age (years)

Care type

Hourly fee

Hours per fortnight

Attends school (uses the lower school-age fee cap)Aboriginal and/or Torres Strait Islander child (100 subsidised hours)

Show amounts per

Your out-of-pocket per fortnight

FY2026-27

$0.00

Subsidy $0.00 of $0.00 in fees

Family total per fortnight

Total child care fees$0.00

Child Care Subsidy− $0.00

Gap fee$0.00

5% withheld (refunded at tax time)+ $0.00

Your out-of-pocket cost now$0.00

Per child

Child 1

90.00%

Subsidy− $0.00

Gap fee$0.00

Services Australia withholds 5% of your subsidy each fortnight to reduce the risk of an overpayment, so your actual out-of-pocket cost is a little higher during the year and is reconciled after you confirm your income at tax time. The out-of-pocket figure above already includes this withholding.

Source & currency. Rates, income thresholds and hourly rate caps for the FY2026-27 year, effective 6 July 2026. The 3 Day Guarantee replaced the activity test on 5 January 2026. Figures verified against Services Australia, the Department of Education and the DSS Family Assistance Guide on 26 July 2026. CCS rates are indexed every July.

Assumptions. Income is your and your partner's combined adjusted taxable income · the subsidy percentage applies to the lower of your fee or the hourly rate cap · “below school age” is a child under 6 and not at school · the second and younger children aged 5 or under get the higher rate (except In Home Care) · the family out-of-pocket figure includes the 5% withholding · annual figures use 26 fortnights · amounts are rounded, so per-child figures may not add up exactly to the family total.

What this doesn't include. This is a standard and higher Child Care Subsidy estimate only. It does not model: the Additional Child Care Subsidy (ACCS) for grandparents, transition-to-work, temporary financial hardship or children at risk; state or territory programs such as free-preschool or kindergarten initiatives; eligibility gates such as immunisation requirements or a child being in secondary school; changes you make to your withholding percentage; or the end-of-year income balancing Services Australia performs. If you use In Home Care for more than one child it is subsidised per family — one hourly cap and one hours entitlement shared across your children — which this tool estimates per child instead. Your official entitlement is determined by Services Australia using your verified income and circumstances.

Want your take-home pay too? Try the Take-Home Pay Calculator →

Disclaimer. This calculator provides a general estimate only and is not financial, taxation, or legal advice. It uses standard Child Care Subsidy rates for the FY2026-27 year and doesn't account for your full personal circumstances. Rates and thresholds change — they are indexed each July. Your figures are calculated in your browser and aren't sent anywhere. For advice specific to your situation, contact Services Australia or a registered adviser.

Frequently asked questions

How much Child Care Subsidy will I get in 2026-27?: Your subsidy percentage depends on your combined family income: 90% if you earn up to $88,520, then it drops by 1 percentage point for every $5,000 above that, reaching 0% at $538,520 or more. That percentage is applied to the lower of your actual hourly fee or the government's hourly rate cap, for the hours of care you're entitled to. These figures apply from 6 July 2026.
What is the 3 Day Guarantee?: From 5 January 2026 the old activity test was replaced. Every eligible family now gets at least 72 hours of subsidised care per fortnight — about 3 days a week — regardless of how much work or study they do. Families where each parent does more than 48 hours of recognised participation per fortnight, or who have a valid exemption, can get 100 hours. Aboriginal and Torres Strait Islander children automatically get 100 hours.
How does the higher subsidy for a second child work?: If you have more than one child aged 5 or under in care and your combined income is under $370,727, your second and younger children get a higher subsidy — up to 95%. The higher rate uses its own income test: 95% up to $146,437, easing to 80% at $191,437, holding at 80% to $270,727, easing to 50% at $360,727, then withdrawing entirely at $370,727. In Home Care does not attract the higher rate.
What income should I enter?: Enter your and your partner's combined adjusted taxable income for the year — not your gross salary. Adjusted taxable income includes taxable income plus things like reportable fringe benefits, reportable super contributions and net investment losses. Using gross salary will overstate your subsidy.
Why is my out-of-pocket cost higher than the gap fee?: Services Australia withholds 5% of your subsidy each fortnight to reduce the chance of an overpayment. That means a little less subsidy is paid to your provider during the year, so you pay slightly more out of pocket. The withheld amount is reconciled after you confirm your income at tax time. The out-of-pocket figure in this calculator already includes the 5% withholding.
Does this calculator include everything that affects my subsidy?: No. It estimates the standard and higher Child Care Subsidy only. It does not include the Additional Child Care Subsidy (ACCS), state or territory programs such as free-preschool initiatives, or eligibility gates like immunisation requirements. Your official entitlement is determined by Services Australia using your verified income.