Is Child Care Free in Australia? Exploring Government Programs for Child Care 

Understanding the Cost of Child Care in Australia 

Is Child Care Free? A Quick Overview 

The government recently introduced the ‘3 Day Guarantee’ for childcare in Australia. It has caused some misunderstanding amongst families, with some now thinking that childcare is free, or that they are automatically guaranteed a spot in a centre. 

From January 2026, the 3 Day Guarantee replaces the Child Care Subsidy (CCS) Activity Test, which used to determine how many hours of subsidised childcare families could access. The activity test was based on paid work, study, training, volunteering, job seeking and travel. 

The 3 Day Guarantee replaces the activity test for the first 72 hours per fortnight (equivalent of 3 days per week), making it easier for non-working parents to get subsidies. The test still applies for any hours beyond that. 

Child Care Subsidy (CCS) 

The Child Care Subsidy (CCS) is an Australian government financial aid, paid directly to approved childcare providers, to help families with the cost of centre-based childcare fees. 

CCS makes early childhood education more accessible for many families by reducing out-of-pocket costs. 

Each family’s eligibility for CCS is based on combined family income, the child’s age, family care arrangements and whether they have other children enrolled in an Early Childhood Education and Care setting. 

CCS aims to support early learning as well as allow parental workforce participation. 

Subsidised Early Childhood Education and Care 

Approved early childhood programs eligible for CCS include; 

• Centre-Based Day Care (long day care/occasional care) 
• Family Day Care 
• Outside School Hours Care  
• In Home Care (restricted to families who can’t access other types of approved care) 

Additional Child Care Subsidy 

To further support families in Australia, the government offers the Additional Child Care Subsidy (ACCS). ACCS provides extra financial support for families facing temporary financial hardship. It also allows for vulnerable children to have access to early childhood education and care, by covering most or all of their childcare fees. To qualify for ACCS, the family must first be eligible for CCS. 

Through CCS and ACCS, families can access affordable childcare despite the higher cost of living in certain regions of Western Australia. 

Childcare Fees and Financial Support for Families 

Childcare fees can vary between centres, and factors such as proximity to the City and National Quality Standard rating can affect the fee that a childcare provider charges.  

CCS has an hourly rate cap. This is the maximum amount the government will subsidise per hour, depending on the type of care (e.g. long day care, family day care). 

The hourly rate cap for long day care is currently $14.63 per hour (as of July 2025). 

When considering childcare costs, it is important to find out the centre’s hourly rate, as this is not always less than the CCS hourly rate cap. 

Access to Quality Care for Australian Families 

Any Australian family earning up to approximately $535,000 per annum can access quality care through government programs such as CCS. 

Eligibility and Requirements for Government Assistance 

Who is Eligible for the Child Care Subsidy? 

You may be eligible if: 

• You or your partner care for your child at least 2 nights per fortnight or have at least 14% care 
• Your child is 13 or under (or 18 and under with a disability)  
• You or your partner are liable for fees for care provided at an approved child care service 
• Your child meets the Department of Health, Disability and Ageing’s age appropriate early childhood vaccination schedule (or be on an approved catch-up schedule) or have an approved medical exemption recorded on the Australian Immunisation Register. 
• Meet the residence rules (either have Australian citizenship, a permanent visa, a Special Category visa or a certain temporary visa that is either partner provisional or temporary protection type visa). 
• You may also meet the residence rules if any of the following apply: 
• You’re a subclass 403 visa holder who is part of the Pacific Australia Labour Mobility scheme family accompaniment initiative 
• You or your partner are a student from overseas and are receiving financial assistance from the Australian Government to study in Australia 
• You’re in hardship 
• Special circumstances apply 

How to Claim Child Care Subsidy 

Claiming CCS and Subsidy Rates 

To receive CCS, families must complete the following steps: 

1. Parents apply for CCS via their myGov account, linked to Centrelink. 
2. Once approved for CCS, parent provides the parent and child CRNs (Customer Reference Numbers) to the service provider. 
3. On the child’s first day of attendance at the service, the parent confirms the enrolment details on their myGov account. 
4. The subsidy is applied to the childcare fees and families pay the remaining gap fee.