Is a 4th Day Worth It? CCS Cost Analysis

I've asked myself this question more than once.

Is it actually worth going back to 4 days a week?

The fourth childcare session can add only a small gap payment if it fits within 100 subsidised hours. If your family remains capped at 72 hours, it may receive little or no CCS.

Quick answer

A fourth workday often produces a better return when the extra childcare session fits within 100 subsidised hours.

The result can be much smaller, or negative, when the extra session receives little or no CCS and the additional take-home pay is low.

The main factors are:

• your additional take-home pay
• whether the extra childcare session receives CCS
• your childcare fee and session length
• whether the extra income lowers CCS across your existing days
• future provider fee increases

The answer is to compare your complete three-day and four-day scenarios.

Why 72 versus 100 hours matters

From 5 January 2026, eligible families receive at least 72 subsidised hours per fortnight under the 3 Day Guarantee.

If the partner with the lower activity level meets the activity-test threshold for more than 48 hours per fortnight, your family may qualify for up to 100 subsidised hours.

Recognised activity includes more than paid work. It can include approved study, training, volunteering and other recognised activities.

For 12-hour sessions:

In this 12-hour-session example, the first three days use the full 72 hours, so no subsidised hours remain for a fourth session unless the family qualifies for 100 hours.

Shorter sessions change the result. Three 10-hour days use 60 hours per fortnight, leaving 12 hours within the 72-hour entitlement for additional care.

Check both partners' approved activity hours in myGov before running the comparison.

What changes when you work another day?

Moving from three days to four can affect:

• take-home pay
• childcare usage
• CCS percentage
• subsidised hours
• HELP repayments
• Family Tax Benefit and other income-tested payments

The useful calculation is:

Additional take-home pay

minus

Additional out-of-pocket childcare

minus

Any increase across your existing childcare days

Comparing your daily wage with the centre's advertised fee will usually give the wrong answer.

Confirmed 2026–27 CCS rates

The confirmed 2026–27 rates apply from 6 July 2026.

The maximum-rate income threshold increases from $85,279 to $88,520.

If your family income sits between those amounts, you may qualify for the full 90% rate from 6 July.

The Centre Based Day Care hourly cap for a child below school age also increases from $14.63 to $15.19.

For a 12-hour Centre Based Day Care session for a child below school age, CCS can apply to fees up to $182.28 per day, subject to the family's CCS percentage and available subsidised hours. Families pay the full amount charged above that.

See all confirmed 2026–27 CCS rates →

Example: the fourth session fits within 100 hours

These examples are illustrations only. Your result will depend on your income, fees, session length and CCS rate.

Assume:

• one child in Centre Based Day Care
• 12-hour sessions
• 90% CCS
• $173 daily fee
• 100 subsidised hours

The $173 fee is about $14.42 an hour, which sits below the confirmed $15.19 hourly cap.

At three days a week, the family's out-of-pocket childcare cost is about $51.90.

At four days, it is about $69.20.

Extra childcare cost in this example: $17.30 a week

This is the childcare cost only. It is not the total financial benefit of working the extra day.

The additional income may also reduce CCS across all four days. The complete result needs to include take-home pay, tax, HELP and any increase across the existing childcare days.

Example: the family remains on 72 hours

Use the same assumptions, but the family remains limited to 72 subsidised hours.

With three 12-hour sessions, the existing care already uses the full entitlement.

No subsidised hours remain for the fourth 12-hour session.

Extra childcare cost in this example: $173 a week

At a $201 daily fee:

Extra childcare cost in this example: $201 a week

The higher income may also lower CCS across the existing three days.

The same childcare arrangement can therefore add $17.30 or $173 a week depending on whether the family receives 100 or 72 subsidised hours.

How earning more affects CCS

For families above $88,520, the standard CCS rate gradually tapers by the equivalent of 1 percentage point for each additional $5,000 of family income.

That reduction applies across all subsidised childcare, not just the fourth session.

If working the extra day adds $20,000 to annual family income, the standard CCS rate may fall by around four percentage points, provided the family remains within the taper range.

That can increase the cost of the fourth session, the existing three days and care used by other children.

Families with two or more children aged 5 or under may receive a higher rate for the second and younger children under a separate income test.

The additional income can affect each child differently.

See the second and younger child CCS rates →

Is a fifth day worth it?

The fifth day often produces a smaller financial return than the fourth.

Four 12-hour days use 96 hours per fortnight and fit within the 100-hour maximum.

Five days use 120 hours. That leaves 20 hours per fortnight, or 10 hours each week, outside the entitlement.

The childcare cost from four days to five days is therefore much higher than the cost of moving from three days to four.

Fees above $182.28 for a 12-hour session exceed the 2026–27 hourly cap, so families pay the full excess.

The table below assumes one child, 90% CCS and 12-hour Centre Based Day Care sessions.

The fifth day can still leave you ahead when the additional take-home pay is high.

But it often produces a smaller return and is more exposed to childcare fee rises. Model it separately rather than assuming it costs the same as the fourth day.

Why the answer may change later in 2026

The CCS hourly caps rise by around 3.8% from 6 July, but provider fees may rise faster.

Fee settings for participating services change again from August 2026, and the current Worker Retention Payment is scheduled to end on 30 November 2026.

CCS Checker's fee-outlook modelling estimates that replacing the expiring wage support could place roughly $9 to $12 per child per day of pressure on fees at an average centre. This is a modelling estimate, not a confirmed increase.

See the 2026 childcare fee outlook →

A fee rise does not always flow dollar-for-dollar to the family. CCS may cover part of an increase below the hourly cap. More of it lands directly on the family when the provider already charges above the cap.

Run the comparison using your current fee and a realistic future fee scenario.

Is the fourth day worth it?

The fourth day is usually most attractive when the extra childcare session fits within 100 subsidised hours.

High fees, lower CCS, HELP repayments and additional work costs can still reduce the gain.

The fifth day needs a separate calculation because five 12-hour sessions exceed the 100-hour maximum.

Check your subsidised hours first, then compare the extra take-home pay with the full increase in childcare across every child and every existing day.

Compare 3, 4 and 5 days side by side

Premium's Scenario Comparison compares three-day, four-day and five-day scenarios after tax, CCS and childcare.

It shows how the household result changes when income, childcare days, session lengths or future fees change.

This is general guidance only. Report changes to your income, activity hours, relationship status and care arrangements promptly through myGov. Always confirm your approved CCS percentage and subsidised hours with Services Australia.

Need a quick starting point? Run the free CCS Checker →