The Australian Government is moving to change the Child Care Subsidy (CCS) activity test effective 5 January 2026. The update adds a minimum entitlement to subsidised child care, termed the “3 Day Guarantee”, where qualifying families are assured a minimum of 72 hours subsidised child care every fortnight, irrespective of their work or study activity. The Child Care Subsidy activity test is designed to increase the availability of child care to families across the country, providing parents with more assistance and flexibility to engage in their activities.
The 3 Day Guarantee is a positive step for families who in the past never received subsidized care because there were not enough hours of recognized activity. The new framework ensures every eligible family is guaranteed a minimum of 72 hours over a two-week period. Many more young children will be able to participate in early learning programs, which will help them develop and reduce the strain on parents with competing work and family obligations.
Some families, in particular circumstances, are eligible for up to 100 hours of subsidized care. For partnered families, if both parents (or guardians) achieve more than 48 hours of recognised work, volunteering, or studying every fortnight, then the full subsidy hours are available. Validation if completing the activity test is to have children who are Aboriginal or Torres Strait Islander also permits families to claim the full 100 hours. This is of great help to those who have greater child care needs.
Out-of-pocket Costs Remain
In spite of the CCS covering a large amount of the child care expenses, there will still be a cost that needs to be paid is referred to as a ‘gap fee’. This is the gap between what the provider pays and what the government pays. It is recommended that families have a conversation with their providers about the costs to help determine their budgets.
Impact on Children and Families
The new guarantee is especially advantageous for young children, as improving access to early learning makes them better prepared for school and the social world. Aboriginal and Torres Strait Islander children will continue to enjoy special support that the government has enhanced, demonstrating its desire to close the educational inequities and disparities. For parents, the updated CCS will enable them greater ease to pursue work, education, or volunteering as there is no loss of affordable child care.
Preparing for the Changes
Families need to work with Services Australia to update their activity details and check with their child care provider regarding the hours offered and their effects on schedules. Customers looking to gain any more specifics on the subject is referred to the official website of Services Australia, from which visitors can access the RSS feeds of the ongoing updates.
### FAQs
1. Who is qualifies for 100 hours of subsidized child care?
Families in which both parents do more than 48 hours of recognized activity, have a granted exemption, or whose children identify as Aboriginal or Torres Strait Islander.
2. Will families continue to pay some amount of child care expenses?
Yes, the families will still have to pay the gap fee which is the fee for child care services that is not covered by the subsidy.
3. Are all types of child care providers impacted by these changes?
Yes, all types of child care providers will implement the new rules under the Child Care Subsidy from 1 January 2026.
