Child Care Subsidy (CCS) Calculator
On a A$100,000 combined family income, one child in Centre Based Day Care at A$11.50/hour for 100 hours a fortnight gets 88% Child Care Subsidy, leaving a gap fee of about A$1.89/hour (A$189/fortnight, A$4,904/year). If a 2nd child aged 5 or under is also in care at the same rates, that child usually gets the higher CCS rate — 95% at this income — cutting their gap fee further. Enter your own numbers below.
$189 gap fee per fortnight
Standard rate child: 88% CCS · gap $1.89/hr ($189/fortnight)
Total gap fee: $4,904/year · at least 72 hours/fortnight are subsidised regardless of the activity test (3 Day Guarantee, since 5 Jan 2026).
Standard rate child — A$11.50/hr fee (cap A$15.19/hr)
Income sensitivity: standard vs higher CCS rate
| Family income | Standard rate (1 child ≤5) | Higher rate (2nd+ child ≤5) |
|---|---|---|
| $80,000 | 90% | 95% |
| $120,000 | 84% | 95% |
| $200,000 | 68% | 80% |
| $300,000 | 48% | 71% |
What's withheld and what happens at reconciliation
| Subsidy (gross, calculated) | Withheld (5%) | Paid to provider now | |
|---|---|---|---|
| Standard rate child | $1,012/fn | $51/fn | $961/fn |
The 5% withheld is reconciled after end of financial year, once your actual income is confirmed — you can be paid the withheld amount, or owe a debt, depending on how your estimate compares to your real income.
Standard and higher Child Care Subsidy rates, hourly rate caps by care type, the 5% withholding and the 3 Day Guarantee (72 subsidised hours/fortnight, since 5 January 2026) verified against Services Australia (servicesaustralia.gov.au). Estimate only — it doesn't model the activity test above the guaranteed hours, and your real subsidy is reconciled against your actual income at year end, not the estimate entered here. How we calculate →
How the standard CCS percentage works
Child Care Subsidy pays a percentage of your hourly fee (up to a rate cap that depends on the type of care) — the percentage depends on your family's combined income. Families on A$88,520 or less get the top rate of 90%. Above that, the rate drops by 1 percentage point for every $5,000 of extra income, reaching 0% at A$538,520.
For example: A$80,000 income → 90% CCS. A$120,000 → 84%. A$200,000 → 68%. A$300,000 → 48%. The subsidy applies to the lower of your actual hourly fee or the government's hourly rate cap for your type of care — if your provider charges more than the cap, you pay the difference on top, with no subsidy on that extra amount.
The higher CCS rate for a 2nd child aged 5 or under
If your family has more than one CCS-eligible child aged 5 or younger in care at the same time, the younger one (or ones) usually qualify for a higher CCS rate instead of the standard rate — Services Australia automatically designates the eldest as the 'standard rate child' and any younger sibling(s) ≤5 as 'higher rate child(ren)'.
The higher rate starts at 95% for combined income up to $146,437, tapers down to 80% by $191,437, holds at 80% to $270,727, tapers again down to 50% by $360,727, then holds at 50% until $370,727 — above that threshold the higher rate stops entirely and every child in the family reverts to the standard rate. In Home Care is excluded from the higher rate by law, since it is subsidised per family rather than per child.
The gap fee and the 5% withholding
Your gap fee is what you actually pay out of pocket: your hourly fee minus the subsidy your provider receives. Services Australia doesn't pass on the full calculated subsidy in real time — it withholds 5% of your fortnightly entitlement and pays that portion as a lump sum only after your income is reconciled at the end of the financial year (to avoid you ending up with a debt if your estimate turns out too low).
That means your real-time gap fee is slightly higher than the 'headline' subsidy percentage suggests — the calculator shows both the gross subsidy and the actual amount paid to your provider after withholding.
The 3 Day Guarantee: a minimum of subsidised hours
Since 5 January 2026, every CCS-eligible family gets at least 72 hours of subsidised care per fortnight (the '3 Day Guarantee') regardless of the activity test — previously, hours above a low-activity minimum required both parents to meet a work/study/job-search activity test. This calculator assumes the hours you enter are eligible; it doesn't model the activity test that can still apply to hours requested above the 72-hour minimum.
Frequently asked questions
How much is Child Care Subsidy on $100,000 family income?
At A$100,000 combined family income, the standard CCS rate is 88%. A 2nd CCS-eligible child aged 5 or under in care at the same time would usually get the higher rate — 95% at this income.
What is the higher Child Care Subsidy rate?
It applies to your 2nd (or younger) CCS-eligible child aged 5 or under while another sibling aged 5 or under is also in care: 95% up to $146,437 combined family income, tapering to 80%, holding, tapering again to 50%, then cutting out entirely above $370,727 (everyone reverts to the standard rate).
Does the higher CCS rate apply to In Home Care?
No. In Home Care (IHC) is explicitly excluded from the higher CCS rate — it's subsidised per family rather than per child, so an IHC child is always paid at the standard CCS rate.
Why is my Child Care Subsidy 5% lower than expected?
Services Australia withholds 5% of your calculated fortnightly CCS and pays it to your provider in real time, holding back the remaining 5% until your income is reconciled at the end of the financial year. Your headline CCS percentage is the gross rate; what actually reduces your fee right now is 95% of that.
What is the 3 Day Guarantee for child care?
Since 5 January 2026, every family gets at least 72 hours of subsidised child care per fortnight, regardless of the activity test that previously limited hours for families with low work/study/job-search activity. Hours requested above that minimum can still depend on the activity test.
At what income does Child Care Subsidy reach 0%?
At $538,520 or more combined family income, the standard CCS rate drops to 0% — no subsidy is paid regardless of the type of care or number of children.
Researched & verified by the Calcuris Data & Research Team. How we build and check our tools →