Question 1

What is the CCS hourly fee cap for centre-based day care in 2025–26 and 2026–27?

Accepted Answer

For 2025–26 and 2026–27, the CCS hourly fee cap for centre-based day care is $14.63 per hour. If your childcare provider charges more than this cap, the subsidy is calculated on the cap amount and you pay the difference. Other care types have different caps: family day care is $13.56 per hour and outside school hours care is $14.63 per hour.

Question 2

What is the family income threshold for the maximum 90% Child Care Subsidy in 2025–26 and 2026–27?

Accepted Answer

For 2025–26 and 2026–27, families with a combined Adjusted Taxable Income (ATI) of $85,279 or less receive the maximum CCS rate of 90%. Above this threshold, the subsidy percentage tapers down. The subsidy reduces to 0% for families earning $535,279 or more. A higher CCS rate may apply for families earning between $85,279 and $367,563 for their second child and younger children.

Question 3

How does the 5% CCS withholding rate work and why is it applied?

Accepted Answer

The Australian Government withholds 5% of your CCS entitlement by default as a safeguard against overpayments. This withholding is reconciled after the end of the financial year when your actual income is confirmed. If your income estimate was accurate, the withheld amount is paid back to you. You can request to change your withholding percentage through your Centrelink online account via myGov.

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