Understanding the Child Care Subsidy (CCS) 2025–2026
Making high-quality early learning more affordable for Australian families. At Perfect Start Early Education, we believe every child deserves access to high-quality early learning, and that child care should be affordable for every family.
That’s why we’re here to help you understand how the Child Care Subsidy (CCS) works, what’s changing in 2025–2026, and how these updates make early education more accessible for all.
What Is the Child Care Subsidy?
The Child Care Subsidy (CCS) is a government program that helps families with the cost of approved child care.
Instead of paying the full childcare fee upfront, the Australian Government pays a portion of your fees directly to your childcare provider, reducing your out-of-pocket costs.
Perfect Start Early Education is an approved CCS provider, which means eligible families can access this support at all of our centres.
Who Can Get the Child Care Subsidy?
You may be eligible for CCS if you:
- Use an approved child care service like Perfect Start Early Education
- Meet the residency and immunisation requirements
- Participate in recognised activities, such as:
- Paid work (including paid leave)
- Self-employment
- Unpaid work in a family business
- Volunteering
- Studying or training
- Looking for work
How Your Subsidy Is Calculated?
The amount of CCS you receive depends on three main factors:
What’s Changing in 2025–2026
The Government is making several key updates to make early learning more affordable and flexible for Australian families.
1. Increased Hourly Rate Caps (From 7 July 2025)
The hourly rate cap is the maximum amount the Government will subsidise per hour of care. From 7 July 2025, these caps were increased to reflect inflation, helping families save more.
If your centre’s fees are at or below these caps, your out-of-pocket costs will likely decrease.
2. Updated Income Thresholds & Subsidy Rates
(From 7 July 2025)
The CCS percentage is based on your combined family income.
- Families earning up to $85,279 receive up to 90% subsidy.
- The subsidy gradually decreases as income increases.
- Families earning $535,279 or more will not receive CCS.
- Families with more than one child under age 5 may receive a higher subsidy for younger children.
3.Introducing the Three-Day Guarantee
(From 5 January 2026)
This is one of the most exciting updates!
From 5 January 2026, all eligible families will receive at least 72 hours (3 days) of subsidised care per fortnight, regardless of how many hours they work, study, or volunteer.
This new rule means:
-Parents with casual or flexible work can still access consistent care.
– Children benefit from stability in their early learning environment.
-Aboriginal and Torres Strait Islander children will receive 100 hours of subsidised care every fortnight, regardless of activity hours.
This change ensures every family has fair access to early education opportunities.
4. No Annual Cap
The Child Care Subsidy no longer has an annual limit, so families won’t run out of subsidy throughout the year, even if your child attends care full-time.
Example: What This Means for You...
Let’s look at a real-life example:
Family income: $90,000 per year
Type of care: Centre-Based Day Care
Centre fee: $14.00 per hour
You would receive a 90% subsidy, so the Government would pay $12.60 per hour directly to your childcare provider.
Your out-of-pocket cost (gap fee) would be just $1.40 per hour.
And from January 2026, even if your work hours change, you’ll still receive 3 days (72 hours) of subsidised care every fortnight.
Tips for Families
To make sure you’re getting the most from your subsidy:
-Keep your Centrelink details up to date (income, activity hours, family structure).
-Ensure your child’s immunisation is current.
-Review your activity level regularly — especially if your work or study hours change.
Visit servicesaustralia.gov.au/ccs for official updates.
If you need help calculating your estimated out-of-pocket cost, our friendly team is happy to assist.
Frequently Asked Questions
Q: Is Perfect Start Early Education an approved CCS provider?
Yes! All Perfect Start Early Education centres are fully approved CCS providers.
Q: What happens if I don’t meet the activity test?
From January 2026, you’ll still receive 3 days (72 hours) of subsidised care every fortnight under the Three-Day Guarantee.
Q: Do I need to reapply for CCS each year?
No — but you must ensure your income and activity details are updated with Centrelink to avoid overpayments or missed entitlements.
Q: Can grandparents or carers apply for CCS?
Yes — some carers and grandparents may qualify if they meet the government’s eligibility criteria.
In Summary
- CCS helps reduce the cost of approved early learning.
- From July 2025, subsidy rates and hourly caps are increasing.
- From January 2026, every family will receive a minimum of 3 days of subsidised care per fortnight.
- There’s no annual cap, so eligible families can access CCS all year round.
Perfect Start Early Education
Understanding the Child Care Subsidy can feel intimidating, but you don’t have to face it by yourself. At Perfect Start, our friendly team is ready to guide you through each step, ensuring you access all the benefits you deserve. From clarifying your eligibility to supporting your application process, we are always just a message away!
Educating with Passion.
At Perfect Start, we’re proud to partner with families in providing affordable, high-quality early learning.
Understanding the Child Care Subsidy can feel intimidating, but you don’t have to face it by yourself. At Perfect Start, our friendly team is ready to guide you through each step, ensuring you access all the benefits you deserve. From clarifying your eligibility to supporting your application process, we are always just a message away!
