How should childcare centres explain costs after Child Care Subsidy?

Centres can help families understand the calculation without promising an exact entitlement.

Use three layers.

1. Show the full service fee

State the daily fee, session length, inclusions and unavoidable extras before discussing subsidy.

2. Explain the CCS calculation in plain language

A family’s subsidy depends on factors including family income, the child’s circumstances and approved care. The subsidy is also subject to an hourly rate cap, so the percentage may not apply to the full service fee. ^R16

From 5 January 2026, the activity test was replaced by the 3 Day Guarantee, giving CCS-eligible families at least 72 hours of subsidised care per fortnight, with some families eligible for more. ^R15

3. Explain why actual payments can differ from an estimate

Services Australia may withhold part of CCS to reduce the risk of a debt and balances payments after the financial year using confirmed family information. ^R14

Use a calculator only if it:

• uses current rules;
• shows all assumptions;
• can model the centre’s real fee and session length;
• identifies the hourly-cap effect;
• displays a last-updated date;
• tells families to confirm their circumstances with Services Australia.

Suggested disclaimer:

This is an estimate based on the information entered and current published settings. It is not a Services Australia assessment. Your actual subsidy and gap fee may differ.

Avoid telling a family what income to declare, how to structure care for maximum subsidy or what entitlement it will receive. Direct individual entitlement questions to Services Australia.

Last checked: 19 July 2026.

Practical next step: review every cost example against the current Department of Education rates and the centre’s actual session structure before publishing it.

Related guides

• How the CCS hourly rate cap affects a family’s childcare cost
• Should childcare centres show fees online?
• Why can a family’s gap fee be higher than its CCS percentage suggests?