2025 Australia Childcare & CCS Changes: Out-of-Pocket Cost Calculator for Different Incomes
- The Child Care Subsidy (CCS) still gives the highest rates to lower income families, but the 2025–26 income thresholds have been indexed slightly upward.
- Families earning up to roughly $85,000 can receive the maximum 90% CCS, with a gradual taper down towards 0% as income rises.
- Approved subsidised hours still depend on the CCS activity test; part-time work or irregular shifts can reduce the hours covered.
- Out-of-pocket childcare costs now vary widely by state, centre type, hours used and whether you have more than one child in care.
- Below is a simplified, calculator-style breakdown to help different income brackets estimate what they actually pay in 2025–26.
Childcare fees continue to rise across Australia, with many centres increasing daily rates in 2024–2025 due to staffing pressures, higher wages and compliance costs. The federal Child Care Subsidy (CCS) remains the main way families get help, but the way the sliding scale and activity test work can still be confusing.
This guide walks through the 2025–26 CCS settings and then uses a simple calculator-style example to show what different income levels might pay out of pocket for long day care. It’s designed for both local families and expats trying to budget childcare costs in Australia.
1. 2025–26 CCS Income Thresholds: Updated Bands
The CCS uses a sliding scale that depends on your combined family income. From the 2025–26 year, the standard CCS thresholds are roughly:
| 2025–26 Family Income | Standard CCS Rate (First Child) |
|---|---|
| Up to about $85,279 | 90% |
| More than $85,279 to below $535,279 | Tapering from 90% down to 0% (drops 1 percentage point for every additional $5,000 of income) |
| $535,279 or more | 0% |
On top of this, families with more than one child aged 5 or under in care may receive a higher CCS rate (up to 95%) for second and younger children, within separate higher-rate thresholds. The structure, however, is still a gradual taper rather than hard jumps between fixed bands.
2. Childcare Fees in 2025: What Centres Actually Charge
Daily fees differ by location, service type and quality:
- Major capital cities: around $125–$180 per day for long day care
- High-demand inner suburbs: $160–$190+ per day
- Regional centres: roughly $110–$150 per day
Most families use between 3 and 5 days of care per week. That means even small changes in CCS percentage or daily fees can add up to thousands of dollars per year.
3. Simple 2025 CCS Calculator (Different Income Scenarios)
To keep things concrete, we’ll use a common metro example: a daily fee of $150 per day for long day care, 3 days per week, for 48 weeks per year.
Base annual fee (before CCS):
$150 × 3 days/week × 48 weeks = $21,600 per year
Income: $85,000 (Maximum CCS – 90%)
- Approx CCS rate: 90%
- Government covers: ≈ $19,440
- Out-of-pocket: ≈ $2,160 per year
- Weekly cost: ≈ $45/week
Income: $135,000 (Lower-Mid Income – ~80%)
- Approx CCS rate: 80%
- Government covers: ≈ $17,280
- Out-of-pocket: ≈ $4,320 per year
- Weekly cost: ≈ $90/week
Income: $185,000 (Mid-High Income – ~70%)
- Approx CCS rate: 70%
- Government covers: ≈ $15,120
- Out-of-pocket: ≈ $6,480 per year
- Weekly cost: ≈ $135/week
Income: $285,000 (Higher Income – ~50%)
- Approx CCS rate: 50%
- Government covers: ≈ $10,800
- Out-of-pocket: ≈ $10,800 per year
- Weekly cost: ≈ $225/week
Income: $485,000 (Upper Income – ~10%)
- Approx CCS rate: 10%
- Government covers: ≈ $2,160
- Out-of-pocket: ≈ $19,440 per year
- Weekly cost: ≈ $405/week
Income: $535,000+ (No CCS)
- CCS rate: 0%
- Out-of-pocket: $21,600 per year
- Weekly cost: ≈ $450/week
Remember: these are simplified calculations that ignore hourly caps and higher rates for second and younger children. Your actual costs will depend on your exact income, hours used, centre fees and family structure.
4. Activity Test in 2025: How Many Hours You Actually Get
The CCS “activity test” determines how many hours per fortnight are subsidised based on the parents’ recognised activities (work, study, training, volunteering, etc.). Services Australia looks at the lower activity level of the two parents in a couple.
From mid-2025, guidelines commonly use these activity bands (per fortnight):
- Less than ~8 hours: limited or no subsidised hours above a small baseline (depending on circumstances)
- More than 8 to 16 hours: around 36 subsidised hours
- More than 16 to 48 hours: around 72 subsidised hours
- Over 48 hours: up to 100 subsidised hours
If you work part-time, do shift work, or have irregular hours, it’s important to regularly update your activity details and check how many CCS hours you’re actually approved for—otherwise you may unexpectedly run out of subsidised hours for a fortnight and face higher out-of-pocket fees for extra sessions.
Final Thoughts
Childcare costs remain one of the largest expenses for Australian families. The 2025–26 CCS settings continue to support lower and middle-income families the most, but childcare remains a substantial line in nearly every household budget. Understanding your subsidy percentage and your activity-test hours is the key to budgeting accurately.
Use your personal income estimate, check your childcare centre’s daily rate, then apply the CCS percentage to get your real out-of-pocket weekly cost. Small changes in hours or income can shift CCS bands, so keep your details updated with Services Australia.
Useful References
- Services Australia – Child Care Subsidy
- Department of Education – CCS Policy Updates
- Australian Bureau of Statistics – Childcare Data
- Individual childcare centre fee schedules
Disclaimer: This article provides general information only. Subsidy percentages, income thresholds and eligibility criteria change frequently—always check Services Australia for current details.