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Australian Government CCS, 2026–27
Child Care Subsidy
The Child Care Subsidy (CCS) is an Australian Government payment that covers up to 90% of your child care fee, and up to 95% for a second or younger child. It's paid straight to the centre and comes off your fees, so you only pay the gap.
Last reviewed 19 October 2026
90%
of the fee, for family income up to $88,520
72 hrs
subsidised per fortnight, guaranteed
Up to 95%
for a second or younger child under 6
What is the Child Care Subsidy?
CCS is the main way the Australian Government helps families with the cost of child care. Services Australia pays it directly to your approved child care service, and the service passes it on as a reduction in your fees.
You don't pay the full fee and wait for a refund. Your invoice shows the fee, the subsidy and the gap you pay.
Most families still pay a gap fee. How big it is depends on a few things.
How your CCS is worked out
Family income
Your combined adjusted taxable income sets your CCS percentage.
Subsidised hours
72 or 100 hours a fortnight, under the 3 Day Guarantee.
The hourly rate cap
CCS is paid on your fee or the cap, whichever is lower.
Your children
Their age, and whether you have more than one child in care.
The 3 Day Guarantee
Since 5 January 2026, the 3 Day Guarantee has replaced the old activity test. Every CCS-eligible family now gets at least 72 hours of subsidised care a fortnight, no matter how many hours you work, study or volunteer.
72 hours a fortnight
Every eligible family
About three days of care a week in most centres. There's no work or study requirement.
100 hours a fortnight
If you qualify for more
- You and your partner each do more than 48 hours of recognised activity a fortnight
- You care for an Aboriginal and/or Torres Strait Islander child
- You have an approved exemption, or receive certain types of Additional Child Care Subsidy
The 3 Day Guarantee is about subsidised hours. It doesn't guarantee a place at a particular centre.
CCS rates for 2026–27
From 6 July 2026, your CCS percentage is based on your combined family income.
| Combined family income | CCS percentage |
|---|---|
| Up to $88,520 | 90% |
| $88,521 to $538,519 | Drops by 1% for every $5,000 above $88,520 |
| $538,520 or more | 0% |
| Second and younger children aged 5 and under | Standard rate plus 30 points, capped at 95% |
The hourly rate cap for centre-based day care is $15.19 an hour for children below school age in 2026–27. If a fee is above the cap, the difference is added to your gap.
How a gap fee is worked out: an example
An illustrative 10-hour day at $150, for a family earning under $88,520. This isn't Lumora's fee.
| Daily fee (under the $151.90 cap for 10 hours) | $150.00 |
| CCS at 90% | −$135.00 |
| 5% of CCS held back until your tax return | +$6.75 |
| You pay on the day | $21.75 |
The held-back 5% is paid to you after the end of the financial year if your income estimate was right.
Who is eligible for CCS?
- You care for your child at least 2 nights a fortnight
- You pay the fees at an approved child care service
- You or your partner meet the residency rules
- Your child's immunisations are up to date, or on a catch-up schedule
- Your child is 13 or under and not yet at secondary school
How to apply for CCS
- 1Sign in to myGov and link it to Centrelink
- 2Have your and your child's CRNs, your income estimate and immunisation records ready
- 3Claim the Child Care Subsidy in your Centrelink online account
- 4Confirm the enrolment we create for your child in myGov: check the start date and days
- 5Keep your income and activity details up to date
Backdating is limited, so claim early. Apply with Services Australia.
Extra help with child care costs
Additional Child Care Subsidy (ACCS)
Extra help on top of CCS for families who need it, including:
- Children at risk of harm (child wellbeing)
- Temporary financial hardship
- Grandparents caring for grandchildren on income support
- Parents moving from income support into work or study
Talk to us in confidence. We can help you work out whether to apply.
Free Kinder in Victoria
If your child is in a funded kinder program, the Victorian Government's Free Kinder offset comes off your fees after CCS. In 2026 that's up to $2,101 a year per child.
Child Care Subsidy at our Ballarat and Pakenham centres
Lumora is an approved child care service, so families can claim CCS at both our centres. On your tour, our Centre Manager can sit down with you, estimate your likely gap fee and walk you through applying on myGov.
Both centres are open 6:30 am to 6:30 pm, Monday to Friday.
Clear invoices
Fee, CCS, any Free Kinder offset and your gap, line by line.
Help with myGov
We create the enrolment, and help you confirm it.
Gap fee estimate
Worked out with you before you enrol, not after.
Free Kinder too
Applied after CCS for kinder-age children in funded programs.
Questions
Child Care Subsidy FAQs
Do I need to work to get the Child Care Subsidy?
No. Since 5 January 2026 the 3 Day Guarantee has replaced the old activity test. Every CCS-eligible family gets at least 72 hours of subsidised care a fortnight, no matter how many hours you work, study or volunteer. You get 100 hours if you and your partner each do more than 48 hours of recognised activity a fortnight, you care for an Aboriginal and/or Torres Strait Islander child, or you have an approved exemption or certain types of Additional Child Care Subsidy.
How much will I pay after CCS?
You pay the gap: the fee minus your CCS percentage, on the lower of your fee and the hourly cap, plus the 5% of subsidy that is held back until your tax return. What that leaves depends on your income, the days you attend and the daily fee for your child's room. Our calculator gives you an estimate in about a minute, and our Centre Manager can work it out with you before you enrol.
Why is 5% of my CCS held back?
Services Australia holds back 5% of each payment to cover differences between your income estimate and what you actually earn. After you lodge your tax return, they work out the true amount. If your estimate was right, the held-back money is paid to you after the end of the financial year. If you earned more than estimated, the held-back 5% helps reduce what you owe back.
Is CCS paid when my child is away?
Generally yes. You can receive CCS for absences for up to 42 days in a financial year, which covers most family holidays and sick days. Once those days are used up, additional absences are paid only in limited circumstances, such as illness supported by a medical certificate.
What if my income changes during the year?
Update your income estimate in myGov as soon as it changes. Your CCS percentage is adjusted to match. Keeping your estimate close to your real income means a smaller adjustment when Services Australia reconciles after your tax return — and less chance of an unexpected bill.
Can I get CCS and Free Kinder together?
Yes — they stack. Your Child Care Subsidy comes off the fee first, then the Victorian Government's Free Kinder offset is applied on top. In 2026 the Free Kinder offset is up to $2,101 a year per child in a funded kinder program. See our Free Kindergarten guide for how that works.
Work out your gap fee with us
Visit either centre. Our Centre Manager will show you around, estimate your gap fee after CCS, and answer every question, with no pressure to decide on the day.
Lumora Ballarat
- 2 Stirling Drive, Lake Gardens VIC 3355
- 03 5340 0726
- ballarat@lumoraearlylearning.com.au
- 6:30 AM – 6:30 PM, Monday to Friday
Lumora Pakenham
- 3 Savage Street, Pakenham VIC 3810
- 0406 929 780
- pakenham@lumoraearlylearning.com.au
- 6:30 AM – 6:30 PM, Monday to Friday
Child Care Subsidy rules and rates change each financial year. Figures are for 2026–27, reviewed 19 October 2026. This page is general information, not a Services Australia assessment. Check your entitlement with Services Australia or call 136 150.
Sources: Services Australia: Child Care Subsidy · Department of Education: early childhood · Starting Blocks
Every child deserves to sit in the circle.