Question 1

How do I work out my real out-of-pocket daycare cost?

Accepted Answer

Take your daily fee, multiply by days per week to get the gross weekly fee, then subtract the weekly Child Care Subsidy. The subsidy depends on your family income (90% down to 0% as income rises) and the activity test. This calculator does the maths for you using the official 2025-26 CCS rates.

Question 2

Why does the calculator divide my daily fee by 10?

Accepted Answer

The Child Care Subsidy is calculated on an hourly basis. A standard Australian centre-based daycare day is 10 hours (typically 7am to 6pm), so dividing your daily fee by 10 gives the hourly fee the government uses. This is how Services Australia assesses your subsidy.

Question 3

What if only one parent works?

Accepted Answer

The activity test applies to both parents — the parent with the lower activity level sets your subsidised hours. If one parent isn't working, studying or doing recognised activity (at least 8 hours per fortnight), you generally receive no subsidised hours unless you qualify for a low-income exemption. Families earning under $85,279 get 36 guaranteed subsidised hours per fortnight from 2026 regardless of the activity test.

daycare out-of-pocket calculator

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