Childcare Subsidy

Child Care Subsidy Changes

From 5 January 2026, working out your Child Care Subsidy got a whole lot simpler. The old activity test is gone, replaced by what’s known as the 3 Day Guarantee. Here’s what it means for your family:

Every eligible family can now access at least 72 hours of subsidised care each fortnight, roughly 3 days a week, no matter how much work, study or other participation you do.
Do more than 48 hours of recognised participation each fortnight and you can access up to 100 hours.
Aboriginal and/or Torres Strait Islander children can access 100 hours of subsidised care each fortnight, regardless of their family’s participation level.
The maximum subsidy is 90% for families earning up to $88,520, dropping by 1% for every $5,000 earned above that.
Families with more than one child aged 5 or under in care can still receive a higher rate for their second and younger children.

We know the subsidy can feel like a maze. Our team lives and breathes this stuff, so if you’d like to talk through what your family is entitled to, have a chat with the team at your KingKids Centre.

Current Child Care Subsidy Entitlement

Three things shape how much Child Care Subsidy your family receives: your Combined Family Income, your level of Recognised Participation, and the Type of Care you’re using, such as long day care or family day care.

1. Combined Family Income

Your combined family income sets your subsidy percentage, which is the share of your child care fees the government covers. The higher your income, the lower the percentage. Here are the current standard rates:

Standard CCS Rates

(Service Australia, 2026)

2. Recognised Participation

Your recognised participation is the mix of work, study and other approved activities you do each fortnight. It decides whether you access the baseline 72 hours of subsidised care or the full 100 hours. If you have a partner, both of you are counted, and the lower of your two participation levels is the one used to work out your family’s hours. The hours you can access apply to each child in care.

(Service Australia, 2026)

What counts as recognised participation?

paid work, including being self-employed
paid or unpaid leave, including paid or unpaid parental or maternity leave
an approved course of education or study, including both class time and self-directed study
training to improve your work skills or job prospects
unpaid work in a family business
unpaid work experience or an unpaid internship
actively setting up a business, for up to 13 fortnights over a 12 month period
actively looking for work
volunteering
other activities considered case by case.

A few things worth knowing

If volunteering or looking for work is your only participation, only the first 16 hours each fortnight will count.
You can include reasonable travel time between your child care service and where you work, study or do your activity.
If you’re setting up a business and then start working in it, update your details with Services Australia from setting up a business to paid work.

Parental or maternity leave

Services Australia will count any paid or unpaid parental and maternity leave you take, as long as you’re expected to return to work once your leave ends. When you include this, give them the hours you worked before your leave began.

3. Exemptions

Some families legitimately can’t meet participation requirements, for example parents with disability and carers. If that’s your situation, an exemption may apply, which can give you access to up to 100 hours of subsidised care per fortnight. To check whether you’re eligible, visit the Exemptions page on the Services Australia website.

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Complying Written Agreement (CWA)

What is a Complying Written Arrangement (CWA)?

A Complying Written Arrangement (CWA) is an ongoing agreement between an Early Childhood Education Centre service provider and a Parent/Guardian, to provide care in return for fees. The CWA must contain a minimum amount of information as defined by the Government.

Service providers are required to have a CWA in place for each child in their care, as set out in subsection 200B (3) of the Family Assistance Administration Act.

The CWA needs to include all of the following (in accordance with subsection 200B (3) of the Family Assistance Administration Act):

The names and contact details of the parties to the arrangement
The date the arrangement was entered into
The name and date of birth of the child to whom sessions of care are proposed to be provided
Whether care will be provided on a routine basis under the arrangement, and if so:
- details about the days on which sessions of care will usually be provided; and
- usual start and end times for these sessions of care
Whether care may be provided on a casual or flexible basis under the arrangement (either in addition to, or instead of, being provided on a routine basis)
Details about fees proposed to be charged to the individual for the sessions of care provided under the arrangement, which can be detailed by reference to other material (such as a fee schedule or information available on a website maintained by the provider) that the parties expressly understand may vary from time to time

Who needs a CWA?

A CWA is required for all families that are attending KingKids. The CWA Agreement must be signed before a child can commence care at one of our services and must be re-signed with any changes to permanent bookings.

For more information please go to the Childcare Alliance website.