New CCS Rates for 2025-26

From 7 July 2025, important updates to the Child Care Subsidy (CCS) will come into effect, such as new CCS rates for both standard and higher CCS, income thresholds, and hourly rate caps. These updates are designed to better support families, especially those with younger children or multiple kids in care.

There are also new rules coming into effect from January 2026, including a guaranteed 3 days of subsidised care per week, enhanced support for First Nations families, and the Direct Gap Fee Collection (DGFC) model for FDC providers.

Below is a clear summary of what's changing and what families need to do to keep receiving CCS.

New CCS rates based on family income (7th July 2025)

Starting 7 July, CCS percentages will adjust based on household income:

• Up to $85,279: 90% subsidy

• $85,279 - $535,279: Subsidy reduces by 1% for every $5,000 over $85,279

• $535,279 or more: Not eligible for CCS

These changes aim to ensure more equitable support, with stronger subsidies for lower- to middle-income households.

New CCS Rates for families with multiple children in care (7th July 2025)

The higher child care subsidy (CCS) rate has been around since 2022. Similar to the standard CCS rates, this gets an adjustment based on income:

• Up to $143,273: Up to 95% subsidy

• $143,273 - $188,273: Subsidy reduces by 1% for every $3,000 over $143,273

• $188,273 - $267,563: 80% subsidy

• $267,563 - $357,563: Subsidy reduces by 1% for every $3,000 over $267,563

• $357,563 - $367,563: 50% subsidy

• Above $367,563: Standard CCS rate applies to all children

This is a great opportunity for families with younger siblings to receive more support.

Increased Hourly Rate Caps (7th July 2025)

Hourly caps are the maximum hourly fees the government will subsidise. These are also going up from the first fortnight of the 2025-26 CCS year.

For Centre-Based Day Care and OSHC, they are:

• $14.63 for below school age children

• $12.81 for school age children

For Family Day Care (FDC) the hourly cap is $13.56 (all ages).

For In-Home Care (IHC), the hourly cap is $39.80 per family.

These increases reflect the rising costs of care and help make child care more affordable across all service types.

Changes from January 2026

There are several significant changes from 2026 that will come into effect in January. Here is a list of them.

Gap fees paid directly to FDC providers under DGFC (1st January 2026)

The Direct Gap Fee Collection (DGFC) initiative requires families to pay gap fees by the electronic methods, including:

• Direct debit

• BPAY

• EFTPOS

• Bank transfer

From 1st January 2026, this now applies to Family Day Care (FDC) providers. Services must keep evidence of payment for audit and compliance purposes, and are no longer allowed to take cash payments.

NOTE: The FDC service (not necessarily the educator) remains the approved CCS provider, so it is the service's responsibility to ensure DGFC compliance — not just the educator.

Guaranteed 3 days of subsidised care per week (5th Jan 2026)

All CCS-eligible families will be entitled to three days (72 hours per fortnight) of subsidised child care per child, regardless of their work, study, or activity status. This change removes the previous activity test requirements, ensuring broader access to early learning.

These reforms are expected to alleviate child care costs substantially. For instance, a family previously eligible for 36 hours of subsidised care per fortnight could now receive 72 hours, potentially saving up to $230 per week or $11,400 annually, depending on their provider's fees .

Enhanced support for First Nations families (5th Jan 2026)

Families caring for First Nations children will receive a guaranteed 100 hours of subsidised care per fortnight per child, regardless of activity, providing greater support for early childhood education within these communities.

What to do Next

With expanded access and increased subsidies on the horizon, services can expect an influx of new enquiries and enrolments for the 2025-26 CCS year.

That means it's more important than ever to have efficient systems in place to manage waitlists, bookings, subsidies and family communication.

If you're ready to simplify your operations and stay ahead of the curve, now is the time to explore how OWNA's all-in-one childcare management software can support your service.

👇 Book a demo today and see how OWNA can help you save time, stay compliant, and deliver an outstanding experience to families.