From 7 July 2025, Child Care Subsidy (CCS) has changed.
Service Australia (“Centrelink”) pays this subsidy directly to childcare providers to reduce the fees you pay. The amount you may be eligible for depends on:
Changes from 7 July 2025 include:
Families already getting CCS don’t need to do anything to get the new rates. Services Australia is applying the changes automatically.
Families should tell Services Australia that they have an Aboriginal and/or Torres Strait Islander child in their care if they would like to get at least 36 hours of subsidised care.
Families can call Services Australia on the Centrelink families line to let them know a child in their care is an Aboriginal and/or Torres Strait Islander person. It is voluntary to tell Services Australia this.
Families do not need to do anything if they already get more than 36 hours of subsidy based on their circumstances.
From 5 January 2026, big changes are coming to the Child Care Subsidy (CCS). The government has confirmed the introduction of the long-discussed “3-Day Guarantee”, along with updates to how the CCS Activity Test works.
In this message, we are helping parents better understand the new changes with an easy-to-follow breakdown of what this change means for families, and how you can prepare.
Eligible families for the CCS will now have access to at least 72 hours of subsidised care per fortnight, that’s the equivalent of minimum 3 days a week for most families.
This change gives families more certainty. Even if your recognised activity hours (such as work, study, or volunteering) are low, you’ll still receive a baseline level of subsidised care.
While the 3-Day Guarantee provides a strong foundation, many families will still be able to access up to 100 hours of subsidised care per fortnight. This applies if:
Both parents (if partnered) complete more than 48 hours of recognised activity each fortnight; or
Your family has a valid exemption from the activity test.
In addition, Aboriginal and Torres Strait Islander children will automatically be eligible for the full 100 hours of subsidised care, regardless of activity levels.
The activity test is still an important part of determining your CCS hours. Recognised activities include things like:
If you’re unsure whether your situation qualifies, you can check the full list on the Services Australia website here.
It’s important to remember that the CCS doesn’t always cover the full cost of childcare. Families will still be responsible for gap fees or out-of-pocket expenses charged by their provider.
The good news? With more subsidised hours guaranteed, many families are likely to see significant savings compared to previous arrangements.
Parents with lower activity hours: You’ll receive 72 hours of subsidised care each fortnight, giving you more flexibility for work, study, or family needs.
Families with higher activity levels: You can continue to access the full 100 hours.
Aboriginal and Torres Strait Islander families: Automatically receive the maximum 100 hours.
Families with exemptions: You’ll also be eligible for the full 100 hours.
How to Prepare for the Changes
With changes coming into effect from 5 January 2026, now is a great time to prepare yourself for the changes to ensure your family doesn’t miss out. You can do this by:
The introduction of the 3-Day Guarantee is a major win for families, helping to ensure that all children can access quality early education and care, regardless of their parents’ activity levels.
By locking in a minimum of 72 hours and keeping pathways to 100 hours of subsidised care, these changes aim to support families, strengthen workforce participation, and give every child the best possible start.
