New government subsidies in 2026
3 Day Guarantee
From 5 January 2026, childcare is becoming more affordable for families thanks to the Federal Government’s 3 day Guarantee. This means more families will be able to access early learning and care with greater support from the Child Care Subsidy (CCS).Â
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What is the 3 Day Guarantee?
The 3-Day Guarantee is an initiative of the Federal Government designed to make early learning more accessible for families, particularly for low-income and irregular-work families by guaranteeing more hours of subsidised care. It ensures that every child has the opportunity to benefit from early childhood education, regardless of their family’s circumstances.
How is the 3 Day Guarantee different from the current CCS?
Currently, to be eligible for the Child Care Subsidy (CCS), families must pass an activity test. This test assesses the number of hours parents spend in work, study, training, or other recognised activities to determine the amount of funding they get. If a family doesn’t meet the activity test, they may only be eligible for 24 hours of subsidised care each fortnight.
Under the 3-Day Guarantee, the activity test will be abolished for the first 72 hours of subsidised care per fortnight. This means all children, regardless of their parents’ employment status, will have access to at least three days (72 hours) of CCS-funded childcare every two weeks.
Why is it called the 3 Day Guarantee?
72 hours of subsidised care per fortnight (equivalent to 36 hours per week) is guaranteed. Many long childcare centres (like Busy Bees) offer 12-hour sessions, meaning the 72 hours would cover three full days of care per week and so it is named “3-Day Guarantee.”
Do families have to book 3 days to get the subsidy?
No. Even though it is known as the 3-Day Guarantee, the subsidy is granted based on 72 hours across a fortnight. This means a child could attend two days one week and four days the next.
Does 'guaranteed' mean childcare will be free?
No, childcare will not be free. The CCS reduces the out-of-pocket cost of childcare, but families will still pay the gap fee. This is the difference between the subsidy amount and the daily Busy Bees rate.
How will families benefit ?
These changes could mean thousands in savings per year. We’ve included an example below:Â
Lisa and Tom have one child enrolled in care three days per week (36 hours total). Their combined income is $90,000. Lisa works full-time, and Tom works casually (8 hours/week). Under the current 2025 CCS, they are only eligible for 18 hours of subsidised care per week.
From January 2026, under the 3-Day Guarantee, they’ll receive 36 hours per week, saving around $230 each week (or $11,400 per year) based on average 2025-26 fees.
Will all families benefit from the 3 Day Guarantee ?
No, only families who earn a household income of less than $535,279 (2025/5 financial year) and meet Australian residency rules will get subsidised care under the new rules.Â
Even though the activity test has been removed, the CCS will continue to be means tested in 2026. This means the subsidy amount depends on a family’s household income.
Can some families receive more than 3 days of subsidised care ?
Yes. Some families may access more subsidised care hours if they:
- Care for an Aboriginal or Torres Strait Islander child
- Work, study, or volunteer for more than 48 hours per fortnight
- Have a valid exemption or are experiencing exceptional circumstances
- Receive Additional Child Care Subsidy (ACCS) for wellbeing, financial hardship, or grandparent care.
Do I need to update my centrelink details ?
Most families will be automatically transitioned to the new system. However, it’s always a good idea to check your income estimate and ensure your Centrelink details are up to date.
How can I estimate my 2026 childcare fees?
You can use our updated Child Care Subsidy Calculator to see how the 2026 changes might affect your out-of-pocket fees.
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Calculate your Child Care Subsidy with our CCS calculator
To see your out-of-pocket expenses, select centre, choose activity and add in your family information below.
This is an estimate only and may be subject to changes dependent on your family’s situation.
Slide the button to the year you want to calculate your subsidy for.
Your estimate for the Child Care Subsidy
Total
| Per Week | Per Fortnight | |
|---|---|---|
| Estimated Child Care Subsidy |
$ |
$ |
| Estimated out-of-pocket expenses |
$ |
$ |
- The Government will withhold 5% of your weekly CCS entitlement, which is reflected in our estimates.
- The estimator does not take into account that you may be eligible for the Additional Child Care Subsidy.
- The estimator does not consider that families with First Nations children in their care can receive at least 36 hours of subsidised childcare per fortnight.
- The Government will withhold 5% of your weekly CCS entitlement, which is reflected in our estimates.
- The estimator does not take into account that you may be eligible for the Additional Child Care Subsidy.
- This is based on a child attending sessions of 10 hours on average
- First Nations families are guaranteed 100 hours from 05/01/2026
Remember, this is an estimate only. Changes to centre fees, the law, policy, or your individual circumstances may mean that any Child Care Subsidy you actually are entitled to differs from the amount estimated.
To discuss your enrolment options with our friendly enrolment team, enquire now.
