Child Care Subsidy calculator
This Child Care Subsidy calculator works out your CCS percentage, the subsidy for a day of care and your out-of-pocket gap fee using the 2026-27 income thresholds and hourly rate cap. It then answers the question most parents ask: after tax and child care costs, how much do you actually keep from working an extra day?
Updated 12 November 2026 · Uses 2026-27 figures
Is an extra work day worth it?
Enter your family income, the daily fee and your pay for the extra day.
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.
Looking for steady shifts or a permanent role? TQN Personnel places casual, contract and permanent staff across Australia.
Find workHow to use the Child Care Subsidy calculator
- Enter your combined family income for the financial year.
- Enter the centre's daily fee and the hours charged per day (often 10 to 12 hours, even if your child attends less).
- Enter your gross pay for the extra day of work.
- Enter your marginal tax rate (30% for most incomes between $45,001 and $135,000).
- Read your CCS percentage, gap fee and what you keep from the day.
Child Care Subsidy rates for 2026-27
Your CCS percentage depends on your family's combined income. It is 90% for incomes up to $88,520, then falls by 1 percentage point for every $5,000 of income above that, reaching zero at $538,520.
| Family income | CCS percentage |
|---|---|
| Up to $88,520 | 90% |
| $100,000 | 87% |
| $140,000 | 79% |
| $200,000 | 67% |
| $300,000 | 47% |
| $538,520 or more | 0% |
The subsidy is paid on the lower of the fee charged and the hourly rate cap. For centre-based day care the cap is $15.19 an hour for children below school age and $13.30 for school-age children. Families with more than one child aged 5 or under may get a higher rate for their younger children, which this calculator does not include.
Worked example
Family income $140,000, daily fee $150 for 10 hours, extra day's pay $260, marginal tax rate 30%.
The CCS percentage is 79%. The fee works out to $15 an hour, which is under the $15.19 cap, so the subsidy is 79% of $150: $118.50. Your gap fee is $31.50 for the day.
After 30% tax and 2% Medicare, the $260 day's pay is worth $176.80. Take away the $31.50 gap fee and you keep $145.30 from the extra day, or about $19.12 an hour over 7.6 hours.
At $200,000 family income the CCS percentage is 67%, the gap fee rises to $49.50 and you keep $127.30.
How does Child Care Subsidy work?
CCS is paid by the government straight to your approved child care provider, which takes it off your fees. You pay the rest, called the gap fee. To get it you must claim through myGov, give an estimate of your family income and confirm your enrolment with the provider. Services Australia withholds 5% of your subsidy during the year and pays it back after the reconciliation of your actual income.
Since 5 January 2026 every eligible family gets at least 72 hours of subsidised care per fortnight, about three days a week, with no activity test. Families whose parents work, study or volunteer more can get up to 100 hours a fortnight.
Should I work an extra day?
For most families the answer is yes in cash terms, because the subsidy covers most of the fee at middle incomes. The answer changes when:
- the daily fee is well above the hourly cap, so the gap fee grows quickly
- family income is high, which lowers the CCS percentage
- the extra day pushes you over a tax threshold, the Medicare levy surcharge threshold or the HELP repayment threshold
- the extra day adds travel costs, which you can check with the fuel and trip cost calculator
There is also a longer-term gain the day's numbers miss: super contributions, leave accruals and career progress. Casual and part-time work through an agency can let you choose which days you work to fit your child care days. Register with TQN Personnel to hear about flexible roles.
Limits of this estimate
The calculator uses one child at the standard rate, a single day of care and your marginal tax rate. It does not include the higher rate for second and younger children, family day care or outside school hours care caps, or changes to Family Tax Benefit. Use the Services Australia child care subsidy estimator for an official estimate.
Frequently asked questions
How much Child Care Subsidy will I get?
It depends on family income. For 2026-27 the subsidy is 90% of the fee, up to the hourly rate cap, for families earning up to $88,520. It falls by 1 percentage point for each $5,000 above that, reaching zero at $538,520.
What is the hourly rate cap for child care in 2026-27?
For centre-based day care it is $15.19 an hour for children below school age and $13.30 for school-age children. If your centre charges more than the cap, the subsidy is paid only on the capped amount.
How many hours of subsidised child care can I get?
Since 5 January 2026 all families eligible for CCS can get at least 72 hours of subsidised care per fortnight, regardless of how much they work or study. Families with more recognised activity can get up to 100 hours.
How do I apply for Child Care Subsidy?
Claim through your Centrelink online account in myGov, estimate your family income, and have your provider confirm your child's enrolment. The subsidy is then paid to the provider and reduces your fees.
Is it worth working an extra day with child care costs?
For most middle-income families yes. In the worked example at $140,000 family income, the parent keeps $145.30 from a $260 day after tax and the gap fee. The return falls as income or fees rise, so run your own numbers.
Does the CCS percentage use one parent's income or both?
It uses your combined family income, which includes your partner's income. A change in either parent's hours can change the percentage.
Related calculators
Related guides
Paid parental leaveSources and assumptions
- Services Australia: Your income can affect Child Care Subsidy
- Services Australia: Child Care Subsidy
- Department of Education: Child Care Subsidy
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.