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Key takeaways
- The Child Care Subsidy (CCS) is the standard subsidy that most families receive. The Additional Child Care Subsidy (ACCS) provides extra support for families in specific circumstances.
- ACCS raises your subsidy above the standard CCS rate, and for most categories, it can cover nearly the full fee up to the hourly rate cap.
- There are four ACCS categories. These are: Child Wellbeing, Grandparent, Temporary Financial Hardship and Transition to Work.
- Families apply for three ACCS categories through myGov, but the childcare service applies for Child Wellbeing on the family’s behalf.
- The hourly rate cap determines whether or not you pay a gap fee, so it’s worth understanding this before you enrol.
You may already be familiar with the Child Care Subsidy (CCS). This is the government’s fee reduction that shows up on your childcare invoice every fortnight. But you may not know about the Additional Child Care Subsidy (ACCS). There’s a chance that your family qualifies to receive this subsidy for extra help, but you may not know you can claim it.
The CCS is the standard income-tested subsidy. The ACCS provides a greater level of support for families in specific circumstances, such as grandparents raising their grandchildren or households experiencing financial hardship.
This is a practical guide that explains your childcare subsidy options, covering CCS, ACCS, the four ACCS categories, the hourly rate cap that affects what you actually pay, and how to actually apply. For a related change worth noting, see how the 3-Day Guarantee works.
What is the Child Care Subsidy (CCS)?
The Child Care Subsidy is Australia’s standard fee subsidy for approved early education and care. Rather than being paid to families, it goes directly to your childcare provider and turns up as a reduction on your invoice. The two things that influence what you receive are your combined family income and the hours of subsidised care your family is eligible for.
Effective from 5 January 2026, the 3-Day Guarantee has made it possible for eligible families to receive a minimum of 72 hours of subsidised care per fortnight. This is regardless of whether or not both parents meet the older activity test. As of February 2026, your subsidy percentage is calculated on a sliding scale up to an annual family income limit. Please note that conditions may change over time, so please refer to Services Australia for the most current information.
To determine CCS eligibility in 2026, the core tests are usually residency, immunisation, an approved service and family income below the threshold. The Services Australia childcare subsidy estimator is the fastest way to check what you would receive.
What is the Additional Child Care Subsidy (ACCS)?
The ACCS additional child care subsidy is extra support for families whose circumstances require more than what the standard CCS covers. It raises your subsidy for the relevant care above the standard rate. For most categories, it can cover nearly the whole fee up to the hourly rate cap.
ACCS is not means-tested in the usual sense. Eligibility depends on fitting one of four defined categories. If you qualify, ACCS replaces your standard CCS rate for the child and the period covered, rather than sitting on top of it. It is normally temporary and is subject to regular review. It is tied to the reason it was originally granted.
The four ACCS categories
There are four distinct categories. Each one is tailored to address specific situations. The following sections outline the purpose of each category and provide details on who is responsible for lodging the applications.
Child Wellbeing
For children at risk of serious abuse or neglect, or from families in significant difficulty. The childcare service applies on the family’s behalf, since the category is often initiated by educators, caseworkers or child protection agencies. Families cannot apply directly for this subsidy category.
Grandparent
For grandparents on an income support payment who have primary care of their grandchild. It covers a high proportion of fees up to the hourly rate cap. For this subsidy category, families need to apply via myGov, which is linked to Centrelink.
Temporary Financial Hardship
For families hit by a short-term crisis such as job loss, a natural disaster or a major medical event. It is time-limited (typically lasting 13 weeks) and designed to prevent care disruption while the family recovers. Here, families apply directly via myGov.
Transition to Work
For parents moving from an income support payment into work, study or training. This category offers a subsidy rate that’s lower in comparison to the other three categories, yet it still remains above the standard level for CCS. Families need to apply directly via myGov.
CCS vs ACCS at a glance
A side-by-side view can make the difference between CCS and ACCS clearer. The table below summarises who each is for, the subsidy level, who lodges the application, and clarifies whether or not the older activity test still affects hours.
| Feature | CCS | ACCS |
| Who it’s for | All eligible families with children in approved care | Families in specific circumstances (four categories) |
| Subsidy level | Income-tested percentage up to the hourly rate cap | Higher rate above standard CCS, up to nearly the full fee |
| Who applies | The family, through myGov linked to Centrelink | The family via myGov (for Grandparent, Temporary Financial Hardship and Transition to Work categories), or the service (for the Child Wellbeing category) |
| Activity requirement | Modified from January 2026 by the 3-Day Guarantee (72 hours minimum) | Waived or reduced for most categories |
ACCS entitlement is generally temporary and reviewed at intervals set out by Services Australia.
Understanding the hourly rate cap and gap fees
The hourly rate cap is the maximum hourly fee the government uses to calculate your subsidy. If your childcare centre charges within the cap, your subsidy covers your set percentage of the fee. If your childcare centre charges above the cap, the subsidy is calculated only on the cap. In this instance, you pay the difference out of pocket. That difference is known as your gap fee.
Different cap levels apply to long day care, family day care and outside school hours care. Two families on the same subsidy percentage can therefore pay very different weekly amounts, because the fee their early learning centre charges and the cap that applies both affect the final invoice. Among all government funding types for childcare, the cap is the single biggest determinant of out-of-pocket costs. Refer to Service Australia for current cap figures, as this guide cannot provide personalised financial advice.
How to apply, and how we can help
You may apply for CCS and three ACCS categories (Grandparent, Temporary Financial Hardship and Transition to Work) through myGov, which is directly tied to Centrelink. The exception is ACCS Child Wellbeing, which the childcare service applies for on the family’s behalf. This is typically done in coordination with a caseworker or a child protection contact. If you’re uncertain which category best fits your situation, the Story House enrolment team can walk you through what usually applies. We can let you know what documents Services Australia asks for and how the subsidy shows up on your invoice once approved. Enquire about enrolment today.
Frequently asked questions
What is the difference between CCS and ACCS?
CCS is the standard income-tested subsidy that’s paid to all eligible families for approved services. ACCS is a higher subsidy rate for families in specific circumstances, covering nearly the full fee up to the hourly rate cap for most categories.
Can I get both CCS and ACCS at the same time?
Currently, ACCS replaces your standard CCS rate for the child and period it covers rather than paying on top of CCS. Services Australia works out which rate applies at each stage. Check with them for your specific case.
Who applies for the ACCS Child Wellbeing subsidy?
The childcare service lodges an application for the ACCS Child Wellbeing category on the family’s behalf, since it’s usually initiated by educators or a caseworker. You cannot lodge this category yourself through myGov.
What is the childcare hourly rate cap?
The hourly rate cap is the maximum hourly fee the government uses to calculate your subsidy. If your centre charges above the cap, you pay the gap between the capped amount and the actual fee.
How do I find out what I will actually pay?
Use the Services Australia childcare subsidy estimator for a personalised estimate. The Story House enrolment team can also walk you through how the subsidy applies to fees at your local centre.
