2026-27 estimate
CCS income thresholds and rates, 2026-27
Every Child Care Subsidy number that matters, in one place: where the maximum rate ends, how fast it tapers, where it reaches zero, and the hourly caps for each care type. Unlike a hand-typed table, this page is generated from the same rules file the calculator runs on, so it updates the day our rules profile does.
For 2026-27, CCS covers up to 90% of fees while combined family income stays at or below $88,520. The rate then falls one percentage point per $5,000 of extra income, reaching zero at $538,520. Second and younger children under five get a higher rate, up to 95%, while income stays under $370,727.
Subsidy rate by family income
Rates below come from the engine's own taper function, not a copied brochure table. The standard rate applies to your eldest child under five (and to school-age care); the higher rate applies to second and younger children under five, until it cuts out entirely at $370,727.
CCS rates at sample family incomes, 2026-27
| Family income | Standard rate | Higher rate (younger siblings under 5) |
|---|---|---|
| $88,520 | 90% | 95% |
| $120,000 | 83.7% | 95% |
| $160,000 | 75.7% | 95% |
| $200,000 | 67.7% | 95% |
| $250,000 | 57.7% | 87.7% |
| $300,000 | 47.7% | 77.7% |
| $370,727 | 33.56% | 63.56% |
| $420,000 | 23.7% | 23.7% |
| $480,000 | 11.7% | 11.7% |
| $538,520 | 0% | 0% |
Hourly rate caps by care type
Your CCS percentage applies to your fee or the hourly cap for your care type, whichever is lower. A centre charging above the cap leaves the difference entirely out of pocket, on top of the unsubsidised share, which is why two families on the same subsidy rate can pay very different gaps.
Hourly caps, 2026-27
| Care type | Hourly cap |
|---|---|
| Centre-based day care, below school age | $15.19 |
| Centre-based day care, school age | $13.30 |
| Family day care | $14.08 |
| Outside school hours care | $13.30 |
| In-home care (per family) | $41.31 |
The thresholds in motion: Priya and Dan, Melbourne
A table of thresholds looks static; a family moving through it isn't. Priya earns $85,000 full-time equivalent and is weighing up days; Dan earns $115,000 across a full week. One child in centre-based care at Victoria's average fee of $148 a day. Watch the CCS rate column: every day Priya adds pushes family income further along the taper, so the rate falls from 84.7% with her at home to 67.7% at five days, repricing every day of care they already use, not just the new one.
Priya's family, day by day
| Days | Gross pay | CCS rate | Childcare you pay (after subsidy) | That day adds | $/hr |
|---|---|---|---|---|---|
| 0 (baseline) | $0 | 84.7% | $0 | n/a | n/a |
| 1 | $17,000 | 81.3% | $1,439 | +$15,561 | $39.38 |
| 2 | $34,000 | 77.9% | $3,401 | +$12,769 | $32.31 |
| 3 | $51,000 | 74.5% | $5,887 | +$10,178 | $25.76 |
| 4 | $68,000 | 71.1% | $8,895 | +$8,316 | $21.04 |
| 5 | $85,000 | 67.7% | $12,428 | +$8,028 | $20.31 |
Open this exact scenario in the calculator and swap in your own income and fee to see which threshold band your family actually lands in, day by day.
Reading the table like the calculator does
Two things trip families up. First, the taper works on combined income, so a second earner's fourth day can drop the subsidy on all four days of care, which is why the last days of the week often pay the least; our CCS sweet spot guide works through exactly that. Second, the higher sibling rate makes two-kid maths genuinely different from one-kid maths, but not in the direction many parents guess: see how CCS works with two or more children. Where your fee sits against the cap matters too, and fees vary a lot by state: average childcare costs by state has the comparison. The formulas behind every number here are on the methodology page.
Questions about the thresholds
Which income do the thresholds apply to?
Combined family income for the financial year, the same figure Centrelink assesses for CCS. For a couple that means both incomes added together: a second earner adding days moves the whole family along the taper, which is why the subsidy rate on days you already use can fall when you add another.
Why is my paid rate about 5% lower than the table?
Services Australia withholds 5% of your subsidy through the year as a buffer against an end-of-year debt, then reconciles it after tax returns are lodged. The table shows entitlement rates; your fortnightly statement shows the withheld rate.
Where does the subsidy stop entirely?
At $538,520 of combined family income the rate reaches zero, no matter how many children are in care. From there the full fee is out of pocket, and the higher rate for younger siblings has already cut out earlier, at $370,727.
Sources
- Services AustraliaCCS income test, taper and withholding
- Services AustraliaCCS rates and hourly caps by care type
- Department of EducationAverage daily fees used in the worked example