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Child Care Subsidy 2026 Explained: What the Changes Mean for Your Family

From January 2026, the Australian Government will be introducing major childcare subsidy changes known as the 3 Day Guarantee. These changes are designed to make early childhood education and care more accessible, particularly for families who have found the current activity test confusing or limiting.

If your child is currently attending or will start early learning next year, these changes are very relevant. This guide explains what will be different, what it means for your family, and how our early learning & care centre in Western Sydney can support your child’s learning, safety and wellbeing.

Key Child Care Subsidy Changes for 2026

What is changing?When?What this means for your family
3 Day Guarantee startsFrom 5 January 2026If you are CCS-eligible, your child will get at least 72 hours of subsidised child care per fortnight. That is usually about 3 days a week in a long day care setting.
Less focus on the activity test for the first block of hoursFrom 5 January 2026Even if you have low, irregular or no recognised activity (work, study, training), your child can still receive those 72 subsidised hours if you are eligible for CCS.
More support for First Nations childrenFrom 5 January 2026Families caring for a First Nations child can receive 100 hours of subsidised care per fortnight for that child.

What is the Child Care Subsidy?

If you are already using childcare or early learning, you probably know the basics. For anyone who is new to it:

  • The Child Care Subsidy is a national payment that helps families with the cost of approved early childhood education and care, including long day care, family day care, occasional care and outside school hours care.
  • The Australian Government pays CCS straight to your service, and you pay the gap fee (the difference).
  • How much you get depends on:
    • your family income
    • your child’s age
    • the type of service you use
    • your hours of recognised participation (e.g. study, work or volunteering

From January 2026, the 3 Day Guarantee changes the minimum hours of subsidised care, so more children can attend early learning more regularly.

What does the 3 Day Guarantee actually do?

The 3 Day Guarantee replaces the old CCS activity test for the first block of hours and sets a clear minimum for everyone who is CCS-eligible.

Minimum hours from 5 January 2026

Family situationMinimum CCS hours per child, per fortnightWhat this can look like for you
Any CCS-eligible family72 hoursAround three 10–12 hour days per fortnight in a long day care service, depending on session length (many services count 10–12 hour days).
Caring for a First Nations child100 hoursUp to around five 10-hour days per fortnight of subsidised early learning.
Families with high participation (for example full-time work or study)Up to 100 hoursFamilies with high participation (for example, full-time work or study)

For many families who currently receive 0, 24 or 36 hours of subsidised care because of the activity test, this is a significant increase.

Common Questions Families May Have

1. Who is eligible for the Child Care Subsidy?

You may be eligible for the Child Care Subsidy (CCS) if:

  • You care for a child who is under 13 and not attending secondary school
  • Your child is enrolled with an approved child care service
  • You are responsible for paying the fees
  • You meet certain residency and immunisation requirements

We recommend visiting Services Australia and logging into your myGov account to review if you can start a claim.

2. Do I need to reapply for CCS to get the new hours?

Generally, no. If you already receive CCS and your details are current, Services Australia will apply the new hours automatically from 5 January 2026.

You should still:

  • Log in to myGov and check your family income estimate
  • Update any changes to work, study or family situation

3. Will my fees go down?

The Child Care Subsidy changes affect your hours, not your subsidy percentage. Your gap fee will still depend on:

  • Your CCS percentage
  • Your service’s daily fee and session structure
  • How many hours or days you actually use

However, if you used to receive fewer hours (for example, 24 or 36 hours each fortnight), you may now be able to spread your subsidy over more days, which can make regular attendance more affordable.

Want to Chat Through the Changes?

For families in western Sydney, the Child Care Subsidy changes are designed to make it easier for you to access more regular days of early learning support.

At Woodville Alliance Early Learning & Care in Carramar:

  • We are an approved CCS provider, so eligible families can claim the Child Care Subsidy for our long day care and preschool programs
  • We have a strong focus on school readiness and real-world experiences, including transition activities with local public schools and hands-on learning such as animal programs and safety programs.
  • As a not-for-profit organisation with more than 40 years of local history, any profits are reinvested into our services, educators and facilities, rather than going to shareholders.
  • As part of a wider community, we can also offer disability supports and family programs in Western Sydney if extra help is ever needed

Our team is happy to help you navigate these changes and answer any questions that may arise. Together, we can make the most of the new Child Care Subsidy changes and give your child a safe, nurturing and high-quality start to their learning journey.

Feel free to get in touch with our team to book a tour, ask about vacancies for 2026 or discuss your options.