The Australian Government has announced significant updates to the Child Care Subsidy (CCS) which will make child care more accessible for families. These changes, known as the 3 Day Guarantee, are a fantastic step forward in ensuring all children have the opportunity to benefit from quality care and education.
We know that navigating government support can sometimes be confusing, so we’ve broken down all the key details of the 3 Day Guarantee to help you understand what it means for your family.
Key details:
- What is CCS?: A government subsidy to reduce child care costs for eligible families, based on income, care type and activity levels.
- 3 Day Guarantee overview: Starting 5 January 2026, all families eligible for CCS can access 72 hours of subsidised child care per fortnight, regardless of their activity level.
- Eligibility: Families earning under $533,280 annually qualify, with additional support for specific groups (e.g. Aboriginal/Torres Strait Islander children).
- Benefits: Greater accessibility, flexibility and support for early education, especially for low-income households.
- How to access 3 Day Guarantee: Current CCS recipients automatically benefit; families must still meet other criteria and secure enrolment with a provider.
Keep reading to learn more.
What is the Child Care Subsidy (CCS)?
The Child Care Subsidy is a payment from the Australian Government designed to help eligible families with the cost of child care. It’s paid directly to child care providers (like us) who pass the saving onto families as a fee reduction. This lowers your out-of-pocket expenses, making care more affordable.
The amount of CCS you receive depends on several factors, including your family's income, the type of care you choose, your child's age, and how much you work, study, or volunteer (known as the activity test).
What is the 3 Day Guarantee?
The 3 Day Guarantee is a new change to the Child Care Subsidy that guarantees every eligible family access to at least 72 hours of subsidised child care per fortnight, which is equivalent to three full days of care each week.
The changes will also remove the activity test for the base level of subsidy. This means you no longer have to work, study or volunteer a certain number of hours to get the base level of subsidised care.
The 3 Day Guarantee will come into effect from 5 January 2026.
The Australian Government is investing $426.7 million over the next five years to fund these updates, demonstrating a strong commitment to early childhood education and care.
Who is eligible for the 3 Day Guarantee?
Under the new rules, every family earning a combined income of less than $533,280 per year will be eligible for the 72 hours of subsidised care per fortnight.
Some families will be able to access additional support, receiving up to 100 hours of subsidised care per fortnight. This includes families who:
- are caring for an Aboriginal and/or Torres Strait Islander child;
- have more than 48 hours each fortnight of recognised participation;
- have an exemption or are experiencing exceptional circumstances;
- receive the Additional Child Care Subsidy (ACCS) child wellbeing, temporary financial hardship, or grandparent payments.
The benefits of the 3 Day Guarantee
These updates represent a major step forward in making early learning and child care more accessible for all Australian families. The changes provide:
- Greater accessibility, ensuring access to care is not compromised if parents are on parental leave, looking for work, or have had their work hours reduced.
- More flexibility for families when choosing early learning services that best suit their needs.
- Essential support for all children to access the lifelong benefits of early education, particularly those from low-income households.
How to get the 3 Day Guarantee
The good news is that if you already receive the Child Care Subsidy, you don't need to do anything to benefit from these changes when they start in 2026.
It’s important to remember that families must still meet all other eligibility criteria and will still be required to pay the gap fee (the difference between our fee and the subsidy amount), except in certain circumstances. The guarantee is for subsidised hours, not a guaranteed place at a centre, so you will still need to secure enrolment with your chosen provider.
Begin your child care journey
The 3 Day Guarantee is a positive change that will empower more families to access child care. At the Y, we believe every child deserves the best possible start in life, and these updates help make that a reality.
If your family is eligible, you can receive Child Care Subsidy (including the 3 Day Guarantee from 2026) at any of our early learning centres and Outside School Hours Care services.
Visit our Child Care Subsidy page to learn more, or find a centre near you to begin your family’s child care journey with us.
