Early childhood education is important in supporting a child’s development, yet the cost of quality care can limit access for many Australian families, particularly those in casual or part-time work. The government’s Child Care Subsidy (CCS) aims to make early learning more affordable and accessible.
The Child Care Subsidy (CCS)
The CCS helps families manage the cost of approved early learning and care, with the government covering part of the total fee. The amount a family receives depends on their combined income, the number of children in care and the type of service they are seeking. Families earning up to about $85,000 a year can have up to 90 per cent of their fees covered, with the rate decreasing as income rises, tapering off completely at around $530,000 per year.
Eligibility also depends on an activity test, which looks at the number of hours parents spend working, studying or taking part in other recognised activities each fortnight. Although the system is designed to encourage parents to participate in work and study more often, the calculation can be disadvantageous to families whose hours are inconsistent on a week-to-week basis.
The 3 Day Guarantee
From January 2026, the Australian government have introduced the 3 Day Guarantee as part of the CCS. This guarantee is for families who are already eligible for the CCS, but ensures that they will receive a minimum of 72 hours of subsidised care per fortnight, or about three days each week.
Families who are already receiving more than three days of subsidised care will not have any change to their support; rather, this policy focuses on families who previously qualified for limited hours under the activity test, providing consistency across many different family dynamics.
Support for First Nations Families
The 3 Day Guarantee also provides extra support for Aboriginal and Torres Strait Islander families, allowing them to access up to 100 hours of subsidised care every two weeks, supporting the national aim of closing the education gap and ensuring that First Nations children have regular access to quality care.
Additional Support Programs
In addition to the primary subsidy, the government provides extra aid to families in need or in special circumstances through the Additional Child Care Subsidy (ACCS). The ACCS provides greater financial support for families undergoing hardship and assists them in keeping a child in care during those stressful times.
The ACCS applies in a range of situations, including:
Australia’s child-care subsidy system is designed to help families access affordable early education, and the upcoming 3 Day Guarantee is a major step toward making that access more consistent and fair. The ACCS applies in a range of situations, including:
