Why can a family’s gap fee be higher than its CCS percentage suggests?

A CCS percentage is not always the percentage taken off the centre’s full daily fee.

The main reason is the hourly rate cap. Subsidy is generally calculated using the lower of the service’s hourly fee or the applicable government cap. ^R16

Example:

• daily fee: $190;
• session: 12 hours;
• service hourly fee: $15.83;
• 2026–27 below-school-age Centre Based Day Care cap: $15.19;
• family CCS percentage: 80%.

The simplified subsidised base is capped at $15.19 × 12 = $182.28. Eighty per cent of that is $145.82, leaving a gap of about $44.18 before any withholding or other adjustments. That gap is more than 20% of the $190 fee because the amount above the cap is not subsidised.

Actual payments may also differ because Services Australia can withhold part of CCS, family circumstances can change and payments are balanced after the financial year. ^R14

Centres should explain the components rather than saying only “you receive 80%”. Show:

1. the full fee;
2. session hours and hourly fee;
3. the applicable cap;
4. the estimated subsidy;
5. the estimated family gap;
6. the assumptions and date of the calculation.

Use rounded examples for education, not as quotes. The family’s official entitlement comes from Services Australia.

Last checked: 19 July 2026.

Practical next step: add one worked example beside the fee schedule and review it every time the fee, session length or CCS cap changes.

Related guides

• How the CCS hourly rate cap affects a family’s childcare cost
• How should childcare centres explain costs after Child Care Subsidy?
• How should childcare centres communicate fee changes?