Understanding childcare costs can help families plan their weekly budgets with greater confidence. For families considering a Preschool in prestons, one of the most important factors to understand is the Child Care Subsidy (CCS). The Australian Government uses a family’s estimated income, childcare arrangements and other circumstances to determine how much CCS a family may receive. For the 2026–27 financial year, the income thresholds have been adjusted, making it useful for parents to understand how the current system works.
What Is the Child Care Subsidy?
The Child Care Subsidy is financial assistance from the Australian Government that helps eligible families manage the cost of approved early childhood education and care. Instead of paying the full eligible childcare fee, families receive a percentage of the cost as a subsidy, which is generally paid directly to their childcare service.
The amount a family receives depends on several factors, including estimated family income, the type of approved care being used, the hourly fee or applicable hourly rate cap, the number of children in care and the family’s recognised participation or circumstances. Families generally still need to pay a gap fee after CCS has been applied.
What Are the 2026–27 CCS Income Thresholds?
For the 2026–27 financial year, families with an estimated income of up to $88,520 may receive the maximum standard CCS rate of 90%.
For families earning more than $88,520 but less than $538,520, the subsidy gradually decreases as family income increases. The percentage decreases by 1 percentage point for every additional $5,000 of family income above the $88,520 threshold.
Families with an estimated income of $538,520 or more have a standard CCS rate of 0%.
| Family income for 2026–27 | Standard CCS rate |
| Up to $88,520 | Up to 90% |
| More than $88,520 to below $538,520 | Gradually decreases |
| $538,520 or more | 0% |
These thresholds are adjusted annually, so families should check the current figures rather than relying on information from previous financial years.
How Do Subsidised Childcare Hours Work?
Income is only one part of the CCS calculation. Families also need to understand subsidised childcare hours, which determine how many hours of approved care can receive CCS during each fortnight.
Since 5 January 2026, CCS-eligible families can access at least 72 hours of subsidised care per fortnight per child. Some families may be eligible for up to 100 hours per fortnight, depending on recognised participation and other circumstances.
This means parents should consider both their CCS percentage and the number of subsidised hours available to them. Receiving a high CCS percentage does not necessarily mean every hour of childcare will be subsidised.
Does the Childcare Fee Affect Your CCS?
Yes. The CCS percentage generally applies to the lower of the childcare service’s hourly fee or the relevant government hourly rate cap.
For centre-based day care in 2026–27, the hourly rate cap for children below school age is $15.19 per hour. This is important because CCS is not simply calculated as a percentage of whatever childcare fee a provider charges.
Parents comparing a prestons Preschool should therefore look beyond the advertised daily fee. It can be useful to understand the service’s fee structure, operating hours and how CCS may affect the amount a family actually pays.
What Happens If Your Family Income Changes?
Parents should keep their family income estimate up to date. If circumstances change, such as receiving a pay rise, changing jobs or having a significant change in household income, families may need to update their estimate.
At the end of the financial year, Services Australia compares the income estimate with the family’s actual adjusted taxable income and balances the CCS payments. Keeping information accurate can help reduce the risk of receiving too much or too little subsidy during the year.
What If You Have More Than One Child in Care?
Families with more than one CCS-eligible child aged five or under may qualify for a higher subsidy rate for their second and younger children.
For 2026–27, the higher rate can be up to 95% for eligible second and younger children when family income is up to $146,437. The higher rate then reduces at different income levels and eventually ends when family income reaches $370,727 or more.
This can make the CCS calculation different for families with multiple young children. Parents should check their individual assessment rather than assuming the same percentage will apply to every child.
Planning Childcare Costs With Confidence
For families considering childcare in the Prestons area, understanding CCS can make it easier to plan ahead. Wiggles and Giggles provides an early learning environment where families can explore their childcare options while considering their individual circumstances and childcare needs.
Parents should remember that CCS eligibility and payment amounts are determined by Services Australia. A childcare centre does not decide a family’s CCS percentage. Families can use their Centrelink or myGov account to manage their income estimate and CCS information.
Key Takeaways for Families
The 2026–27 CCS income thresholds are an important part of planning childcare expenses. Eligible families with income up to $88,520 may receive a standard CCS rate of up to 90%, while the rate gradually decreases as family income increases.
Eligible families can access at least 72 hours of subsidised care per fortnight, with some families able to receive up to 100 hours depending on their circumstances. The actual amount a family pays will depend on several factors, including income, childcare fees, applicable hourly rate caps and eligible hours.
Before making childcare decisions, parents should check their current CCS assessment through Services Australia and keep their family income estimate updated.
Frequently Asked Questions
1. What is the maximum Child Care Subsidy rate for 2026–27?
For 2026–27, eligible families with an estimated annual family income of up to $88,520 may receive a maximum standard CCS rate of 90%. The percentage gradually decreases as family income increases.
2. How many subsidised childcare hours can families receive in 2026?
Since 5 January 2026, CCS-eligible families can access at least 72 hours of subsidised childcare per fortnight for each child. Some families may be eligible for up to 100 hours depending on their circumstances.
3. Does family income affect the Child Care Subsidy?
Yes. Family income is one of the factors used to determine the CCS percentage. Generally, the subsidy percentage decreases as estimated family income increases.
4. Can families receive a higher CCS rate for more than one child?
Eligible families with multiple CCS-eligible children aged five or under may receive a higher subsidy rate for their second and younger children. The applicable rate depends on the family’s circumstances and income.
5. How can parents check their Child Care Subsidy entitlement?
Parents can check and manage their CCS information through their Centrelink account linked to myGov. Keeping the family income estimate updated can help ensure the subsidy assessment is based on current information.
