Australia Child Care Subsidy income and hours
This explanation covers Australia’s standard Child Care Subsidy income percentages and the subsidised hours available under the 3 Day Guarantee.
On this page
- Standard income band
- 90% at A$0–A$88,520Services Australia Child Care Subsidy
- Standard subsidy cut-off
- 0% at A$538,520 or moreServices Australia Child Care Subsidy
Standard income percentages
The standard subsidy is 90% for family income from A$0 to A$88,520. Services Australia Child Care Subsidy (opens in a new tab).
Above A$88,520 and below A$538,520, it falls by 1 percentage point for each A$5,000 of income above A$88,520. At A$538,520 or more it is 0%. Services Australia Child Care Subsidy (opens in a new tab).
Fees and higher rates
The percentage applies to the hourly fee or relevant hourly rate cap, whichever is lower. Services Australia Child Care Subsidy (opens in a new tab).
Families with more than one child aged 5 or younger may receive a higher rate for some children. Services Australia Child Care Subsidy (opens in a new tab).
The activity test has changed
The 3 Day Guarantee replaced the previous activity test on 5 January 2026. Department of Education 3 Day Guarantee (opens in a new tab).
Eligible families receive at least 72 subsidised hours per fortnight regardless of activity levels. Department of Education 3 Day Guarantee (opens in a new tab).
When 100 hours apply
A parent and partner, if any, must each do more than 48 hours of recognised participation per fortnight to qualify for 100 subsidised hours on participation grounds. Services Australia recognised participation (opens in a new tab).
The 100-hour provision also covers Aboriginal and Torres Strait Islander children, approved exemptions and certain Additional Child Care Subsidy payments. Department of Education 3 Day Guarantee (opens in a new tab).
Published rules and scope
Services Australia balances subsidy using actual adjusted taxable income after the financial year ends. Services Australia Child Care Subsidy (opens in a new tab).
This general explanation provides no personal eligibility decision, payment or contribution estimate, tax calculation or recommendation. No matching calculator or numerical worked example is provided.