As of 5 January 2026, the Australian Government will begin its first ever stream of changes to the Child Care Subsidy (CCS) activity test. This is a part of a broader plan to heighten affordability and accessibility to child care. The 3 Day Guarantee will be the first of these changes. It will provide 72 hours of subsidised child care per fortnight to all qualifying families, no matter what activity test they meet or don’t meet. This will provide families the opportunity to manage their child care needs with a lot more flexibility. This is an unprecedented change in the allocation of subsidised child care and will be of great relief to families that currently struggle to meet participation requirements to receive any child care subsidisation.
What Is the 3 Day Guarantee?
It is a policy that will guaranteed each eligible CCS family 72 hours, or 3 full days, of subsidised care each fortnight. Subsidised care will now be more predictable and extensive, even in cases where the activity test of work, study or volunteering is not met. There used to be a considerable reliance on the activity test, leaving families with subsidised child care that was minimal and highly variable. Child care subsidy variability will significantly reduce.
Under the revised system, families may continue to qualify for up to 100 hours of subsidised care every 2 weeks provided that one of the participating adults works over 48 hours of recognised work or they have valid exceptions. Each Aboriginal and Torres Strait Islander child also has 100 hours of subsidised child care, irrespective of hours of care activity. This promotes equity and inclusion, especially in overnumerated families.
How Does This Affect Families?
In many ways, child care supports the closure the gaps for equity. For families who may have parents on maternity or paternity leave, those who are taking a break from work, or in the case of those whose work hours are reduced and thus, at a stage of child care subsidised child care, the risk of participation activity loss is greatly reduced. This is also likely to reduce financial stress in families at the other end of the sector and thus, improves participation of the subsidised early childhood education and care system for low-income and vulnerable families.
Families will continue to be required to pay any gap fees or out-of-pocket child care provider costs which proves the subsidy is partial. The subsidy refinements aim to streamline the process for administrators and simplify the calculations they perform.
Short Table: Key Changes to Child Care Subsidy Activity Test
| Aspect | Before 5 January 2026 | From 5 January 2026 (3 Day Guarantee) |
|---|---|---|
| Minimum subsidised hours | Based on hours of activity, can be low | Guaranteed minimum of 72 hours/fortnight |
| Maximum subsidised hours | Up to 100 hours based on activity | Up to 100 hours if >48 hours activity or exemption |
| Special provisions | Some exemptions, lower minimum hours | 100 hours guaranteed for Aboriginal and Torres Strait Islander children |
| Families between jobs or on leave | Limited or no subsidy | Subsidy guaranteed with minimum hours |
What Parents Should Know
To access the updated subsidy, families need to continue meeting the requirements for the Child Care Subsidy, which means reconciling income and other requirements via MyGov and Centrelink as needed. Parents should keep their details current for uninterrupted access to the subsidy under the new system. The Department of Education expects families to discuss changes to enrolment and booking processes with their child care service, as they will need to account for the additional hours of subsidised care.
FAQs
Q1: Will all families get at least 72 hours of subsidised child care?
All families who qualify for the Child Care Subsidy will get 72 hours subsidised child care per fortnight as of January 2026.
Q2: Can families still get more than 72 hours of subsidy?
Yes, families who engage in more than 48 hours of recognised activities and those with valid exemptions, will continue to access up to 100 hours of subsidised care.
Q3: Are there any special provisions for Indigenous families?
Yes, Aboriginal and Torres Strait Islander children will receive 100 hours of subsidised child care per fortnight irrespective of their parents’ activities.
