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Fees & subsidies · Starfish ELC

Childcare Subsidy (CCS) calculator & guide for Australian families

Work out roughly what you'll pay out of pocket, then understand exactly how the Child Care Subsidy is calculated — in plain English, with current figures.
Updated for 2026–27
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Subsidy Calculator
Estimate your gap fee

Your Child Care Subsidy estimate

Enter a few details and we'll estimate your subsidy percentage and weekly out-of-pocket cost. This is a guide only — your actual entitlement is worked out by Services Australia through your myGov account.
Last updated 21 August 2026 · reviewed against Services Australia 2026–27 figures

What is the Child Care Subsidy?

The Child Care Subsidy (CCS) is the Australian Government's main way of helping families with the cost of approved early education and care. It's administered by Services Australia through Centrelink.
You don't receive the money yourself. CCS is paid directly to your centre, which reduces the fee they charge you. What's left after the subsidy is your gap fee — the amount you actually pay. How much subsidy you get comes down to three things:
  • Your family's income - this sets your subsidy percentage, from 90% down to 0%.
  • Your recognised participation - work, study, volunteering and similar, which sets how many subsidised hours you can access each fortnight.
  • The hourly rate cap - the government subsidises the lower of your centre's hourly fee or the capped hourly rate.
To claim CCS, you apply through your myGov account linked to Centrelink. It's worth starting early — a claim can take several weeks to finalise, and until it's approved you may be charged full fees.
The income test

How your income sets your subsidy percentage

Your CCS percentage is based on your combined family income for the year. Lower-income families receive the highest rate; the percentage tapers as income rises.
Combined family income (2026–27)
Your CCS percentage
Up to $88,520
90%
Above $88,520 to below $538,520
Tapers down — drops 1% for every extra $5,000
$538,520 or more
0%
Families with more than one child aged 5 or under can receive a higher rate (up to 95%) for their second and younger children. That higher rate uses its own income thresholds and phases out separately.
The activity test & the 3 Day Guarantee

How many subsidised hours you can get

From 5 January 2026, the old activity test was replaced. The number of subsidised hours you can access now works like this:
Your situation each fortnight
Subsidised hours / fortnight
All CCS-eligible families — the 3 Day Guarantee
At least 72 hrs (about 3 days/week)
You (and your partner) each do more than 48hrs of recognised participation, care for a First Nations child, or qualify for an exemption.
100 hrs
Recognised participation includes paid work, study and training, setting up a business, volunteering and looking for work (the last two count for up to 16 hours). For couples, Services Australia looks at the lower of the two participation levels. The hours apply per child.
The bit that surprises families

Gap fees and the hourly rate cap

CCS doesn't pay a share of your full daily fee. It pays your percentage of the lower of your centre's hourly fee or the government's hourly rate cap. For 2026–27 the cap for centre-based day care (children under school age) is $15.19 per hour.

If your centre's hourly rate is at or below the cap, your subsidy applies to the full fee. If it's above the cap, the subsidy only applies up to the cap — and you pay 100% of the rest. That difference is part of your gap fee.

One more detail worth knowing: Services Australia withholds 5% of your subsidy through the year as a buffer against overpayment, then reconciles it after you lodge your tax return. That's why your weekly gap during the year can look a little higher than a headline percentage suggests.
Two different things families mix up

How funded kindergarten works alongside CCS

In Victoria, funded kindergarten and the Child Care Subsidy are two separate forms of support, and it's easy to confuse them.
  • Funded kindergarten is a Victorian Government contribution toward a kindergarten programme in the year (or two) before school, led by a bachelor-qualified Early Childhood Teacher.
  • CCS is a federal subsidy that reduces your long day care fees based on income and participation.
At Starfish, our funded kindergarten programme runs inside our long day care — so families get kinder hours and full-day care in one place. The funded kindergarten contribution reduces the cost of the kindergarten programme; long day care fees still apply, with CCS reducing your gap fee on top. Eligibility for funded kindergarten depends on your child's age and the Victorian Government's current rules, so it's worth confirming with your Centre Director.
Read about our Funded Kindergarten Program
Three families, three estimates

What CCS can look like in practice

Illustrative estimates using 2026–27 figures, a $150 daily fee over a 10-hour day, and the 72-hour 3 Day Guarantee. Your own numbers will differ — run them in the calculator above.
One income · $75,000

~90%

Below the $88,520 threshold, so the maximum 90% rate. Three days a week, the estimated gap lands around $60–$70 a week after subsidy and withholding.
Two incomes · $130,000

~82%

Above the threshold, the rate tapers. Three days a week, the estimated weekly gap is roughly $95–$105 after subsidy and the 5% withholding buffer.
Two incomes · $210,000

~66%

A steeper taper at higher income. Three days a week, the estimated weekly gap is around $165–$175 — and a second young child would attract a higher rate.
A note on these figures. This calculator and guide are for general information only and give an estimate, not a determination of your entitlement. Child Care Subsidy is worked out by Services Australia based on your family's full circumstances. Figures on this page reflect the 2026–27 financial year (in effect from 6 July 2026) and were last reviewed on 21 August 2026. Rates, thresholds and rules change — confirm current details with Services Australia or the Victorian Department of Education. Fees and government contributions are subject to change.
People also ask

Childcare subsidy questions, answered

To get CCS, your child generally needs to be 13 or under and not attending secondary school, be up to date with immunisation requirements, and use an approved care service. You or your partner must also meet the residence rules. Your income and recognised participation then determine your percentage and hours.

It's based on your combined family income for the year. Families earning up to $88,520 receive the maximum 90%. Above that, the rate drops by 1% for every additional $5,000 of income, reaching 0% at $538,520 (2026–27 figures).

The gap fee is what you pay after the subsidy is applied — the difference between your centre's fee and the CCS the government pays on your behalf. If your centre's hourly rate is above the government cap of $15.19/hr, you also pay the full amount above the cap.

Since 5 January 2026, all CCS-eligible families can access at least 72 hours of subsidised care each fortnight — about three days a week — under the 3 Day Guarantee. Families with more than 48 hours of recognised participation each fortnight (or certain other circumstances) can access 100 hours.

They're separate. Victorian funded kindergarten contributes to the cost of the kindergarten programme; CCS separately reduces your long day care fees. At Starfish, funded kinder runs inside our long day care, so both can apply — long day care fees still apply, with CCS reducing your gap fee.

You apply online through your myGov account linked to Centrelink. It's best to start as soon as you know your child's likely start date, because a claim can take several weeks to finalise. Until your claim is approved, you may be charged full fees.
Child Care Subsidy · from our blog

Subsidy & fee guides for families

Short, plain-English reads on how subsidies, the 3 Day Guarantee and gap fees actually work — updated as the rules change.
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