Understanding Child Care Subsidy (CCS) Changes in 2026

Key takeaways

• From 5 January 2026, all families will receive 72 hours of subsidised child care.
• Families can still access up to 100 hours of subsidised care per fortnight through recognised activity.
• These changes aim to improve access to early childhood education and provide more predictable attendance patterns.
• The same child care subsidy eligibility requirements still apply, including residency, immunisation and other standard child care subsidy criteria.
• SunRise Kids can assist families in understanding CCS, navigating hours, and exploring support options.

What’s changing in 2026?

From 5 January 2026, the Australian Government will introduce significant changes to the Child Care Subsidy (CCS) to make early learning more accessible and affordable for families. These updates give parents greater certainty about their subsidised hours and open the way for more children to participate in consistent, structured early childhood education.

There are two major components to the 2026 reforms:

1. All families will receive at least 72 hours of subsidised care per fortnight, regardless of how much they work or study.
2. The way the activity test impacts families will change. Families will only need to complete the test if they require more than 72 hours of subsidised care, instead of using it to access any hours at all. The activities already recognised by CCS will stay the same, but they’ll now sit under a new term: recognised participation types.

These changes aim to ease some of the barriers families run into when trying to access subsidised care.

Why the CCS activity test is changing

Currently, the child care subsidy uses an activity test to determine a family’s hours of subsidised care. These hours depend on recognised participation such as work, study, volunteering or looking for work.

However, research shows that the activity test has created challenges for families. The Productivity Commission found that:

• Children who would benefit the most from early childhood education are often the least likely to attend
• Families with casual, fluctuating or low-activity hours miss out due to eligibility rules
• Many parents struggle with rising child care fees when their activity level drops

To address these issues, the Australian Government is moving towards a more accessible system. The goal is to improve access to early childhood education, reduce financial stress and ensure families do not lose subsidised care because of changing participation levels.

The updated model supports care continuity for more children while still recognising work, study and other eligible activity types.

The new “3-Day Guarantee” explained

From 5 January 2026, all CCS-eligible families will receive a baseline of 72 hours of subsidised child care per fortnight, known as the 3-Day Guarantee.

This applies across all approved child care services, including long day care, family day care, occasional care and outside school hours care for children attending secondary school unless an exemption applies.

What this means for families

• Every child receives subsidised care, regardless of the activity test results
• Children benefit from consistent routines and learning opportunities
• Parents with casual or unpredictable work patterns gain more stability
• Families with younger children or multiple children receive predictable subsidised attendance
• CCS-eligible First Nations families continue to receive 100 hours per fortnight

This change helps ensure children remain engaged in quality early childhood education even when families experience changes in employment or recognised activity.

It’s also important to note that the activity test hasn’t been removed. Instead, how it impacts the amount of subsidised care has changed. The new guarantee applies to everyone, and the activity test is only used if a family needs more than 72 hours. This means most families will have enough subsidised hours to keep their child attending regularly, with the option to increase up to 100 hours through recognised participation.

How these changes benefit children

The CCS changes are designed to support both parents and children by encouraging more consistent attendance in early learning. When children participate regularly, they’re not only accessing extra hours — they’re gaining continuity. Familiar routines help them feel settled, secure and ready to learn, giving them a stronger foundation for the skills they build over time.

Regular early childhood education supports:

• School readiness – predictable routines help children understand structure, build resilience and develop early numeracy and literacy foundations.
• Social and emotional development – frequent interactions give children space to practise emotional regulation, develop friendships and navigate social situations with growing confidence.
• Language and communication – daily conversations, stories, and play contribute to vocabulary growth and early communication skills.
• Stronger educator relationships – when children attend consistently, educators gain a clearer understanding of their interests, temperament and learning style, allowing for more responsive support.
• Developmental equity – steady access to quality early learning is especially impactful for children who may face disadvantage, offering a stable environment that supports long-term outcomes.

At SunRise Kids, our environments focus on play, connection and curiosity. Daily routines and warm relationships help each child feel known, supported and ready to explore their world as part of a caring learning community.

How SunRise Kids can support your family through the changes

Understanding CCS can be confusing, especially with new rules coming into effect. SunRise Kids is committed to helping families navigate:

• How to apply for the CCS, and how to access more than 72 hours
• CCS Eligibility criteria and what they mean for your family
• Working out your likely fortnightly hours
• Recognised participation types and possible exemptions
• Out-of-pocket fees, gap fees and hourly rate caps
• Using the Services Australia child care subsidy calculator
• How the new settings may influence your child’s attendance

We stay up to date with all Services Australia announcements, including immunisation requirements, residency requirements and updates to CCS for eligible families.

Preparing for 2026

The new CCS model aims to give children the continuity they need to learn, build social connections and lay strong foundations for lifelong learning. With guaranteed access to early learning and more flexible pathways to additional hours, families can plan ahead and support their child’s development with greater ease.

If you’re preparing for the 2026 changes or want to understand how they may affect your family, the SunRise Kids team is ready to assist. Together, we can navigate the new system and create a learning experience that supports your child through every stage of their early years.