Despite the current cost-of-living pressures, relief is on the horizon for Child Care Subsidy (CCS) eligible families with the upcoming introduction of the 3 Day Guarantee. From the 5th of January 2026, the CCS activity test will be replaced, meaning all CCS-eligible families can access at least 72 hours of subsidised child care per fortnight.
Wondering what these CCS changes mean for you? Read on to learn more about the 3 Day Guarantee, including what’s changing, who benefits, how it affects your family, and how to estimate your subsidy with our CCS calculator for 2026.
Background: What’s the CCS and what was the activity test?
The Child Care Subsidy, or CCS for short, is the main form of government assistance designed to help with the cost of childcare. The subsidy is paid directly to your childcare provider, who passes the benefit on in the form of reduced childcare fees.
Before families can qualify for the CCS, they must meet several criteria to determine whether they’re eligible and how much assistance they could receive, including an activity test.
As it currently stands, the hours of subsidised care your family is entitled to each fortnight under the CCS are based on the hours of recognised activity that you do. As a general rule, the fewer hours of work or study that you do, the less subsidised hours you’re entitled to. This meant that some families with low or no work or study hours are often locked out of meaningful support and left to pay the full cost of childcare. But this is all set to change under the new CCS in 2026.
The big change: The “3 Day Guarantee” from January 2026
As of the 5th of January 2026, all CCS-eligible families will be guaranteed at least three days (equivalent to 72 hours per fortnight) of subsidised early childhood education and care (ECEC) for each eligible child, regardless of their work or study hours.
Some families who do more than 48 hours of recognised activities each fortnight (or have a valid exemption) will be eligible for up to 100 hours of subsidised care per fortnight. Similarly, families caring for an Aboriginal and/or Torres Strait Islander child will automatically receive the CCS’s 100 hours regardless of their participation hours.
It’s worth noting that although these changes affect the number of subsidised hours of care your family is entitled to, other deciding factors, including the income test, will remain the same.
What do these changes mean for families?
The 3 Day Guarantee represents a significant step towards building a more universally accessible early childhood education and care system. It’s estimated that over 66,000 families will be better off under these CCS changes, saving them an average of $1,370 annually on childcare costs. For instance, a family that previously couldn’t meet the activity test and had access to only 24 or 36 subsidised hours each fortnight will now have their benefit automatically increased to 72 hours.
In short, these changes will provide more families with access to subsidised childcare. This means greater consistency for children, more flexibility for parents, and potential savings for families who previously had access to fewer hours. More consistent access to early learning days for children means stronger routines, more opportunities for socialisation, and better preparation for school. As for families, there’ll be less pressure to meet work/study participation hours just to access subsidised childcare.
That said, these CCS 2026 changes don’t necessarily guarantee your child a place at your chosen childcare service for 3 days each fortnight. It’s purely a guarantee of your subsidy hours entitlement, rather than availability. With the CCS in 2026, families will still need to cover the difference between the subsidised amount and their service’s fees. And remember, your subsidy rate will still be determined by your family’s income, hourly rate caps, and the number and age of children in your care.
Where to from here?
While these changes aren’t set to come into effect until early January 2026, it’s important to act now or risk missing out on a place at your current or preferred childcare service. Start planning your days, chat with the friendly Kids ELC staff, and review your enrolment or current bookings to secure your preferred days.
Not quite sure where to start? Here are a few questions you might want to ask your childcare provider:
- How many days per week can my child attend?
- After the change, how many subsidised hours will our family have?
- What will our out-of-pocket (gap) cost be?
- Does my child qualify for the 100-hour tier (e.g., if First Nations child, or over 48 hours of participation)?
- Do we need to update our details with Services Australia (especially for First Nations entitlement)?
Remember, the 3 Day Guarantee applies to subsidised hours based on your circumstances. You’ll still need to secure a placement at your childcare provider and cover the gap between the CCS and the provider’s fees.
Secure your place at Kids ELC before 2026
The upcoming CCS changes in 2026, including the 3 Day Guarantee, are a huge win for families and children in care. While the subsidy rate will continue to depend on your family’s combined income and other factors, the changes to the activity test are set to benefit more families.
To make the most of these childcare changes, chat to your local Kids ELC centre and plan ahead for January to take advantage of the extra hours of subsidised care. Use our CCS calculator to see what your family could be entitled to, or get in touch with the Kids ELC team to let us help you navigate these changes.
