2026–27 From 6 July 2026
Child Care Subsidy Hourly Rate Caps (2026–27)
The cap is the most your subsidy will ever be calculated on, for each hour of care. If your provider charges more, you pay the difference — on top of your share of the fee.
The caps for 2026–27
| Type of care | Child below school age | School aged child |
|---|---|---|
| Centre based day care (long day care) | $15.19 | $13.30 |
| Outside school hours care | $15.19 | $13.30 |
| Family day care | $14.08 | $14.08 |
| In home care | $41.31 | Capped per family |
Figures from the Family Assistance Guide 3.5.3, checked 12 October 2026.
Two worked examples
Both examples come straight from the government’s own guidance, so you can follow the logic exactly as Centrelink applies it.
Fee below the cap — you are subsidised on the real fee
A family is charged $100.00 for a 10 hour session — that is $10.00 an hour. The centre based day care cap is $15.19, which is more, so the subsidy is worked out on the actual fee of $10.00 an hour, not on the cap.
At 77.7 subsidy that is $7.77 an hour, or $77.70 for the 10 hour session.
Fee above the cap — the excess is yours to pay
A family is charged $154.00 for a 10 hour session — that is $15.40 an hour. The cap is $15.19, so the subsidy is worked out on $15.19 only.
The extra $0.21 an hour is a gap fee the family pays in full, on top of their percentage of the capped amount.
Why two families paying the same fee pay different amounts
The cap does not change with income — but the percentage applied to it does. Take a centre charging $15.19 an hour, 50 hours a fortnight:
| Combined family income | CCS percentage | Subsidy per hour | Subsidy per fortnight |
|---|---|---|---|
| $88,520 | 90% | $13.67 | $684 |
| $150,000 | 77.7% | $11.80 | $590 |
| $250,000 | 57.7% | $8.76 | $438 |
| $400,000 | 27.7% | $4.21 | $210 |
Same fee, same hours, same cap — the only thing that moved is income. That is why the percentage matters far more than shopping around for a provider that charges under the cap.
Frequently asked questions
What is an hourly rate cap?
The maximum hourly fee the government will subsidise, for each type of care. You are subsidised on the lower of the cap and what your provider actually charges.
What if my centre charges more than the cap?
You still get your percentage of the cap — the extra is a gap fee you pay in full. Paying $16.50 an hour at a $15.19 cap means the last $1.31 an hour is never subsidised.
Why is the school age cap lower?
School aged children are usually in care for fewer hours, so the government subsidises them at a lower hourly rate. The lower cap applies to centre based day care and outside school hours care, not to family day care.
When does a child count as school aged?
From the first day they are due to attend school. It also applies automatically once a child turns 6, and during school holidays or short absences — so the lower cap is not switched off over the summer break.
Do the caps go up?
Yes, by CPI at the start of each financial year. The 2026–27 caps have applied since Monday 6 July 2026.
Is in home care treated differently?
Yes. The in home care cap of $41.31 an hour is applied per family, not per child, and the higher rate for second and younger children does not apply to it.
Next
- Child Care Subsidy calculator — put your own fee and hours in
- Income thresholds — the bands that set your percentage