Understanding Child Care Subsidy for Your Baby: What It Really Costs

How much is childcare for a baby, really, once Child Care Subsidy is taken off? For most families, the answer is much less than the daily fee suggests. This guide explains how Child Care Subsidy (CCS) works for babies, what changed in 2026, and what a day in our babies room at Little Stars in Toongabbie might actually cost you.

What is Child Care Subsidy?

Child Care Subsidy is the Australian Government's help with childcare fees. It's paid straight to your centre, which takes it off your bill. You pay the rest, called the gap fee.

To get it, your child must meet immunisation requirements, and you need to claim through your myGov account linked to Centrelink. Claim before your baby starts, because until CCS is approved you pay full fees.

How much Child Care Subsidy will I get?

Your CCS percentage depends on your family's combined income. For the 2026–27 financial year:

• Families earning up to $88,520 get 90%.
• Above that, the rate drops by 1% for every $5,000 of income.
• It reaches 0% at $538,520 or more.

The subsidy is worked out on the lower of your hourly fee or the government's hourly rate cap. For centre-based day care in 2026–27, the cap is $15.19 an hour for children below school age. Caps and income thresholds change each July, so check the current figures with Services Australia.

What changed in 2026: the 3 Day Guarantee

From 5 January 2026, the old activity test was replaced by the 3 Day Guarantee. Every eligible family now gets at least 72 hours of subsidised care a fortnight, whatever your work or study hours. Families who work, study or volunteer more can get up to 100 hours a fortnight.

For a baby starting on three days a week, that means all three days are subsidised, even if you're returning to work part-time.

What does a day in the babies room cost?

At Little Stars, the daily fee for our babies room, Lilly Pilly, is $156. We're open 11 hours a day, from 7am to 6pm, and the fee is the same for a 9, 10 or 11-hour session. Over an 11-hour session, the hourly cap adds up to about $167, so the whole $156 is subsidised at your CCS rate. (Shorter sessions have a lower cap, so the 11-hour session gets the most subsidy.)

Here's roughly what you'd pay for one day:

Your CCS rate	Subsidy	You pay
90%	$140.40	$15.60
70%	$109.20	$46.80
50%	$78	$78

These are estimates, before the 5% that Services Australia withholds until you balance your CCS at the end of the financial year.

Work out your own numbers: try our Child Care Subsidy calculator. Choose the babies room, enter your family income and the days you need, and it shows what you'd pay per day, week and fortnight, using the 2026–27 rates.

Other costs to know about

• Bond. We ask for a two-week bond before your baby starts. It's refundable when care ends, or can be used for outstanding fees.
• Absences. Fees still apply when your baby is sick or on holiday. CCS covers up to 42 absence days per child each financial year.
• Notice. We need 14 days' notice if you're leaving.
• What's included. Nappies and fresh meals are included in our fees, so there's less to buy each week.

Is childcare worth it financially?

It's a personal decision. Some families work it out week by week. Others look at the bigger picture: keeping a career moving, super contributions, and the value to their baby of warm, consistent care.

With CCS at 90%, a day of care can cost less than many people expect. Run your own numbers before you decide.

How to claim Child Care Subsidy, step by step

1. Sign in to myGov and link Centrelink, if you haven't already.
2. Make a CCS claim with your income estimate and your baby's details.
3. Enrol with your centre. We enter your enrolment, and you confirm it in myGov.
4. Check your CCS percentage once your claim is approved.
5. Update your income estimate if it changes during the year, so you don't over- or under-claim.

You can claim before your baby starts care, which avoids paying full fees at the beginning.

Frequently asked questions

How do I apply for Child Care Subsidy?
Through your myGov account linked to Centrelink. Do it before your baby starts care.

Does the 3 Day Guarantee apply to babies?
Yes. It applies to all eligible children below school age.

Is there a calculator I can use?
Yes. Our Child Care Subsidy calculator estimates your out-of-pocket fees for each of our rooms.

Is the CCS hourly cap the same in 2027?
No. Caps are indexed each July, so check the current amount.

Do I pay fees on public holidays?
Fees apply during absences, including public holidays.

Let's work out your numbers together

Families from Toongabbie, Seven Hills, Wentworthville, Pendle Hill and Girraween ask us about costs on every tour. Read about our rooms and our childcare centre in Toongabbie. Then book a tour, and we'll go through fees and CCS with you.