Child Care Subsidy Australia: 2026–27 income rates and claim process
Child Care Subsidy is paid to approved providers to reduce family fees. From the 2026–27 year, the standard rate is 90% up to family income of A$88,520 and tapers to zero below A$538,520.
Key facts before you decide
- The standard CCS rate is 90% for family income up to A$88,520.
- It tapers by 1 percentage point for each A$5,000 above the threshold and reaches 0% at A$538,520.
- Eligible families receive at least 72 subsidised hours per fortnight under the January 2026 arrangements.
- The subsidy is normally paid directly to the approved child care provider.
Rules, amounts and dates can change. Confirm your situation through the official links before submitting documents.
What CCS pays
Child Care Subsidy reduces fees charged by an approved child care service. Services Australia pays the subsidy to the provider, which applies it to the family account. The family pays the remaining gap fee.
The amount depends on family income, subsidised hours, the type of care, the hourly rate cap, the provider’s fee and attendance.
Updated 2026–27 standard income rates
For the current 2026–27 settings, families with income from A$0 to A$88,520 can receive the 90% standard rate. Between A$88,520 and below A$538,520, the percentage decreases by 1 point for each A$5,000 of additional family income. At A$538,520 or more, the standard rate is 0%.
Income thresholds are indexed and should be checked each financial year.
Higher rate for multiple young children
Families with more than one child aged 5 or younger in approved care may receive a higher percentage for one or more younger children. The 2026–27 higher-rate table starts at 95% for family income up to A$146,437 and then tapers through additional bands.
The standard rate still applies to the eldest eligible child and children outside the higher-rate conditions.
Who can qualify
The claimant must care for the child at least two nights a fortnight or have at least 14% care, be liable for the fees and meet residence requirements. The child must generally be 13 or younger, not attending secondary school, and meet immunisation rules unless an exemption applies.
Only approved services qualify. Informal babysitting is not subsidised.
Subsidised hours
From 5 January 2026, eligible families receive at least 72 subsidised hours per fortnight. Activity and family circumstances can support up to 100 hours. Aboriginal and Torres Strait Islander children may qualify for 100 hours under the published arrangements.
The number of subsidised hours is not the same as free care. The CCS percentage and hourly cap still determine the gap.
How to claim
The usual route is a Centrelink online account linked to myGov. Prepare identity, Tax File Number, partner, child, care and income details. Submit the claim promptly because backdating is limited to no more than 28 days before submission under the official rules.
After the claim, confirm the provider’s enrolment notice in Centrelink.
Income estimates and balancing
Families give an estimate of combined annual income. Services Australia later balances CCS against actual taxable income. An estimate that is too low can create a debt; an estimate that is too high can reduce help during the year.
For 2025–26 CCS, families generally have until 30 June 2027 to confirm income. Missing the deadline can stop payments and reduce the percentage to zero.
Managing the claim
Report changes in income, relationship, residence, care, activity and provider enrolment. Compare provider statements with attendance reports and resolve errors quickly.
A child must attend within the required period after the CCS start. Extended non-attendance can end the enrolment and require a new claim.
Claim-readiness checklist
- Confirm the provider is approved.
- Check who is legally liable for fees.
- Update both partners’ income estimates.
- Link Centrelink to myGov.
- Confirm the enrolment notice after claiming.
Grantalia cannot calculate an official CCS percentage.
This guide was checked against the responsible agency’s pages. Use these links to verify the process and any later updates.
Read the Child Care Subsidy overviewCheck income rates
Review eligibility
Check income confirmation deadlines