Fees Above the CCS Hourly Cap: What It Means for Your Gap Fee
When your childcare centre charges more per hour than the government's hourly cap, you pay the full difference yourself. That above-cap amount isn't partially subsidised — it's entirely out of pocket, on top of your normal CCS gap.
At high-fee centres, the above-cap portion can be larger than the gap itself.
The 2026–27 hourly rate caps
| Care type | Below school age | School age |
|---|---|---|
| Centre-based day care (long day care) | $15.19/hr | $13.30/hr |
| Outside school hours care | $15.19/hr | $13.30/hr |
| Family day care | $14.08/hr | $14.08/hr |
| In Home Care | $41.31/hr (per family) | |
Your CCS percentage applies to whichever is lower: your centre's hourly fee or the cap. If the fee is below the cap, the full fee is subsidised at your CCS rate. If it's above the cap, only the capped amount is subsidised.
How the above-cap amount is calculated
Worked example: centre charging $17.50/hr, 10-hour session, family income $120,000
CCS rate at $120,000: 84%
| Daily fee | $175.00 |
| Cap (LDC, below school age) | $151.90 (10hrs × $15.19) |
| Above-cap — you pay in full | $23.10 |
| CCS subsidy (84% of cap) | $127.60 |
| Regular gap (16% of cap) | $24.30 |
| Total daily out-of-pocket | $47.40 |
Compare that to a centre charging $15.00/hr (just below cap) for the same family:
- No above-cap amount
- Daily gap: $15.00 × 16% × 10hrs = $24.00
A $2.50/hr fee difference — $175 vs $150 per day — produces a $23.40/day gap difference. Over 48 weeks at 4 days, that's more than $4,500 per year you're paying extra, with no subsidy on any of it.
How common is it?
According to the Department of Education's December quarter 2025 report, nearly 39% of centre-based day care services nationally charge above the (then) $14.63/hr cap. The 2026–27 cap rises to $15.19/hr, which will bring more services under it from July — but many centres in inner-city areas will remain above cap.
The ACT is the only state where the average LDC fee already exceeds the new $15.19/hr cap. In NSW and WA, individual centres in high-cost suburbs are commonly above it even though the state average sits below.
How to work out your centre's hourly rate
Divide your daily fee by the number of hours in your session.
- $150 for a 10-hour session → $15.00/hr → below the $15.19 LDC cap
- $160 for a 10-hour session → $16.00/hr → $0.81/hr above cap
- $175 for a 10-hour session → $17.50/hr → $2.31/hr above cap
- $160 for an 11-hour session → $14.55/hr → below the $15.19 LDC cap
Session length matters. A higher daily fee for a longer session can still sit below the cap, while a lower fee for a short session might exceed it.
What to check if your gap is higher than expected
- Find your centre's daily fee and session hours (on your enrolment paperwork or statement)
- Divide the fee by the hours to get your hourly rate
- Compare to $15.19/hr (LDC below school age) or $14.08/hr (family day care)
- If you're above the cap, multiply the excess by your session hours — that's your daily above-cap amount
- Enter your fee in the CCSChecker calculator to see the exact weekly impact
Frequently asked questions
Why do some centres charge above the cap? Centres set their own fees based on operating costs, staff ratios, location and quality of program. The government doesn't regulate what centres can charge — only what it will subsidise.
Does a higher fee mean better quality? Not necessarily. NQS quality ratings are independent of fees. You can check your centre's rating at startingblocks.gov.au.
Is the above-cap amount included in my annual CCS cap? No. The above-cap amount you pay is entirely outside the subsidy system. It doesn't count toward any annual cap and can't be claimed back.
Will the cap rise each year? Yes. The government indexes hourly caps annually to CPI, usually from the start of July. The 2026–27 caps are confirmed. See hourly cap explained for how indexation works.
CCS rates confirmed from 6 July 2026. All calculations are estimates. Services Australia makes the final assessment.