If you’ve been hearing about the child care subsidy changes in 2026 and wondering what it might mean for your family, you’re in the right place. Here’s a breakdown of what’s changed, from new income thresholds to updated hourly rate caps, and what you need to do.
What Are the CCS Changes 2026?
The Child Care Subsidy hourly rate caps and family income thresholds have gone up from 6 July 2026, adjusted annually based on the Consumer Price Index. So if your fees or subsidy percentage felt different this month, that’s why.
Families with combined income up to $88,520 receive the maximum CCS rate of 90%. Above that, the rate reduces by 1 percentage point for every $5,000 of additional income, tapering down to 0% at $538,520.
For families with more than one child under 5 in care, the Australian Government increases the subsidy up to 95% for a second child and subsequent children aged under 6.
Not sure where your family sits? Use our childcare subsidy calculator to get a personalised estimate.
Changes to the Gap Fee Payment Rules
As of 1 July, families are required to pay their gap fee using electronic means, including bank or credit card, direct deposit, bank transfer, online payment systems, or BPAY and Centrepay.
This change is about protecting families from fraud and non-compliance. If you’re already paying electronically, nothing changes for you. Families who cannot pay electronically may be eligible for Additional Child Care Subsidy support.
Updated Income Thresholds: What the Numbers Mean
The child care subsidy changes for 2026 have shifted the income thresholds upward with CPI indexation.
Here’s what that looks like in practice:
The lower threshold has risen from $85,279 to $88,520, meaning families earning up to $88,520 receive the full 90% maximum rate. The upper cutoff has moved from $535,279 to $538,520, above which no subsidy applies.
If your income hasn’t changed much, you may find yourself in a slightly better subsidy band than last year, worth checking before you assume your rate is the same.
The 3-Day Guarantee: Still in Effect
One of the bigger 2026 child care subsidy changes worth knowing about is that from 5 January 2026, all eligible Australian families became entitled to at least three days of subsidised child care per week (72 hours per fortnight), regardless of work or study activity.
The 3-Day Guarantee doesn’t reduce anyone’s existing entitlement; it only raises the minimum for families who previously had less. If you need full-week care, you can still access up to 100 hours per fortnight by meeting the usual work or study participation test.
What NSW Families Need to Know
If you’re in New South Wales, the 2026 CCS changes apply to you the same way they do nationally, but there are also state-based supports worth stacking on top. NSW families may be eligible for Start Strong funding to further reduce the cost of preschool in the year before school.
Families at our NSW Childcare Centres can speak to our team about how CCS and state funding work together for your situation.
What QLD Families Need to Know
Queensland families have an extra layer of support available. Eligible 4-year-olds can access Free Kindy in QLD (600 funded hours per year), which can be combined with CCS to bring down the real cost of care significantly.
At our QLD Childcare Centres, Free Kindy is applied directly to your fees with no claiming required from your end. Our team handles it from day one.
What Do Families Need to Do?
Most families don’t need to do anything; families on an active CCS arrangement will automatically be moved to the new rates from 6 July 2026.
That said, it’s worth taking a few minutes to:
- Check your income estimate is up to date in myGov or Centrelink; an outdated estimate could mean you’re underpaid or overpaid subsidy across the year
- If you haven’t claimed CCS before but may now be eligible, lodge a claim through myGov or the Centrelink app
- Use our childcare subsidy calculator to see what your family’s out-of-pocket cost looks like under the new rates
See the Child Care Subsidy Changes in Action at Rise & Shine
Understanding the child care subsidy changes in 2026 is one thing; seeing what quality early learning actually looks like is another. Whether you’re in NSW or QLD, our team is here to help you work out your subsidy entitlements and find the right fit for your child.
Book a tour with Rise & Shine and see why families across both states trust us with their most important years.
