Child Care Subsidy Calculator (2025-26)
Estimate Your Subsidy
Enter your family income and child care details on the left, then click Calculate to see your estimated costs.
Why use this CCS Calculator?
Navigating the Child Care Subsidy system can be confusing. Our tool simplifies the process by applying the complex Centrelink formulas to your specific situation, helping you budget for the year ahead.
Automatically applies the 2025-26 hourly rate caps ($14.63 for Centre Based Care) to check for gap fees.
Calculates the exact subsidy percentage reduction for incomes over $85,279.
Shows you the 'Gap Fee' – what you actually pay after subsidy and withholding.
How Your Subsidy is Calculated (Legislation Guide)
The Australian Government calculates your CCS entitlement based on three main factors. Our calculator aligns with the A Family Tax Benefit and Child Care Subsidy legislation:
Services Australia Guide1. Combined Family Income
Your subsidy percentage is based on your family's adjusted taxable income. For 2025-26, families earning up to $85,279 receive the maximum 90% subsidy. The rate decreases by 1% for every $5,000 of extra income, reaching 0% at $535,279.
2. Activity Test (New 3-Day Rule)
From January 5, 2026, the activity test safety net increases. All families are guaranteed at least 72 hours of subsidised care per fortnight (approx. 3 days/week) regardless of work hours. For more hours, you must meet higher activity steps.
3. Hourly Rate Caps
The subsidy is calculated on the lower of your centre's hourly fee OR the government's hourly rate cap. If your centre charges more than the cap (e.g. >$14.63), you pay the full difference.
4. The 5% Withholding Rule
Centrelink withholds 5% of your subsidy payments to use as a buffer against potential overpayments at the end of the financial year. Our calculator includes this to show your true weekly cash flow.
Child Care Subsidy FAQs
To be eligible, you or your partner must generally be an Australian citizen, a permanent resident, or hold a Special Category Visa (SCV) (New Zealand citizens). However, holders of certain temporary visas—specifically Partner Provisional (Subclass 820 or 309)—are also eligible. Most other temporary visa holders (e.g., Student 500, Graduate 485, Working Holiday) are not eligible.
For the 2025-26 financial year, families earning $85,279 or less get the maximum 90% subsidy. Families earning between $85,279 and $535,279 get a tapering rate (decreasing by 1% for every $5,000). Families earning above $535,279 are not eligible for CCS.
Previously, families with low activity hours received fewer subsidised hours (e.g., 24 hours). From January 2026, the base entitlement increases to 72 hours per fortnight for all families, covering approximately 3 days of care per week, even if you are not working or studying.
The 'Gap Fee' is your out-of-pocket cost. It consists of two parts: (1) The percentage of the fee that the government doesn't cover (e.g., if you get 80% subsidy, you pay 20%), plus (2) Any amount your centre charges ABOVE the hourly rate cap.
Yes, you can add multiple children. However, for the 'Higher Subsidy for Multiple Children' (up to 95% for 2nd child), the rules are complex. This calculator currently applies the standard rate calculation to give a conservative estimate of your costs.
No, the Child Care Subsidy is not taxable income. It is paid directly to your childcare provider to reduce your fees.
Data based on Department of Education 2025-26 projections. Last updated January 2026.
Need help with Family Visas?
While we can't help with Centrelink claims, we represent families for Partner Visas, Child Visas, and Parent Visas.