In January 2026, the Australian Government is rolling out a comprehensive $533,290 child care reform package to support working families.
This significant investment is designed to enhance access to early childhood education, ease financial pressure on parents, and promote better developmental outcomes for children.
The new policy includes a 90% subsidy, a Three-Day Guarantee, and expanded eligibility to families earning up to $533,280 annually.
Major Highlights of the 2026 Child Care Subsidy Reform
With rising living costs, many families struggle to afford quality child care. The 2026 reform introduces several key benefits aimed at providing relief and improving access:
| Feature | Description | Benefit |
|---|---|---|
| Three-Day Guarantee | 72 hours of subsidised care every fortnight | Ensures continuity regardless of parental work/study status |
| Subsidy Amount | Based on family income | 90% subsidy for incomes ≤ $83,280; gradual decrease up to $533,280 |
| Eligibility Criteria | Child under 13, using approved provider, immunisation requirement | Targets genuine need while upholding care standards |
| Additional Child Care Subsidy (ACCS) | Up to 100% coverage in hardship cases | Offers added support for vulnerable families |
| Application Process | Through myGov portal linked to Centrelink | Streamlined process; payments go directly to providers |
Subsidy Structure and Income Brackets
The Child Care Subsidy (CCS) will now operate on a sliding scale, based on annual family income:
- $0 – $83,280: 90% subsidy
- $83,281 – $280,000: Subsidy gradually decreases
- $280,001 – $533,280: Lower percentage support still available
- Over $533,280: No subsidy
This approach ensures equitable support, providing meaningful help to a broader range of working families.
Three-Day Guarantee: A Game-Changer
Perhaps the most transformative part of this reform is the Three-Day Guarantee. Starting January 2026, every child under the age of 13 will be eligible for up to 72 hours of subsidised care per fortnight. This benefit applies regardless of the parent’s employment or study status, replacing the former activity test.
The new system helps families like:
Example: Sarah, a single parent earning $65,000 while studying part-time, now qualifies for a 90% subsidy and guaranteed three-day care every fortnight.
Easy Online Application and Direct Payment to Providers
Families can apply via the myGov portal, which links to Centrelink accounts. The steps include:
- Submit income documents
- Confirm care arrangements
- Provide work/study details (if applicable)
Once verified, payments are made directly to the provider, minimising out-of-pocket costs for parents.
Additional Support for Families in Need
The Additional Child Care Subsidy (ACCS) will remain in place to assist families facing:
- Financial hardship
- Domestic violence
- Special care needs
This subsidy can cover up to 100% of child care costs for eligible households.
The 2026 child care subsidy reform marks a progressive shift in Australia’s approach to family support. With expanded eligibility, the Three-Day Guarantee, and higher subsidy rates, the government is investing in both children’s futures and parental well-being.
As working families navigate modern pressures, this reform provides timely and necessary relief—making quality child care more affordable, accessible, and consistent for households across the country.
FAQs
Who qualifies for the 90% child care subsidy?
Families earning up to $83,280 annually with children under 13 using an approved provider are eligible for 90% support.
What is the Three-Day Guarantee?
It ensures all children can access 72 hours of subsidised care per fortnight, regardless of parental work or study status.
How do I apply for the new CCS?
Apply online through the myGov portal, submit required documents, and confirm care details with your provider.