What changed on 5 January 2026
On 5 January 2026, the Australian Government introduced the 3-day guarantee — a new minimum entitlement that ensures every eligible family can access at least 72 subsidised childcare hours per fortnight, regardless of how many hours of work, study, or other activity the parents do.
Before this change, the number of subsidised hours your family could access was entirely determined by the activity test — a system that tied your subsidised hours to the hours of recognised activity performed by the parent who did the least. If neither parent worked, studied, or volunteered enough hours, your family could receive very few or even zero subsidised hours.
The 3-day guarantee removed that floor. Now, every family that meets the basic CCS eligibility requirements receives at least 72 subsidised hours per fortnight as a baseline — with more hours available for families who meet the higher activity thresholds.
Old rules vs new rules
The table below shows how the subsidised hours entitlement has changed. The key difference is in the lowest activity band — families with less than 8 hours of activity per fortnight.
| Activity hours (per fortnight) | Before 5 Jan 2026 | From 5 Jan 2026 |
|---|---|---|
| 0 hours (no activity) | 0 hours (no subsidy) | 72 hours |
| 1 to 7 hours | 24 hours | 72 hours |
| 8 to 16 hours | 72 hours | 72 hours (unchanged) |
| 17 to 48 hours | 72 hours | 72 hours (unchanged) |
| More than 48 hours | 100 hours | 100 hours (unchanged) |
As you can see, the change specifically affects families at the lowest activity levels. Families in the 8+ hours bands already had access to 72 or 100 hours — nothing changed for them. The guarantee lifted the floor for everyone else.
What 72 hours per fortnight means in practice
The number “72 hours per fortnight” can be confusing because childcare sessions vary in length. Here's how it translates to real-world care arrangements:
| Session length | Subsidised sessions per fortnight | Equivalent days per week |
|---|---|---|
| 12 hours (standard long day care) | 6 sessions | 3 days |
| 10 hours | 7 sessions | 3.5 days |
| 8 hours | 9 sessions | 4.5 days |
| 6 hours (half-day / before-school) | 12 sessions | 6 sessions |
For most families using standard long day care (12-hour sessions), the guarantee works out to 3 days per week — hence the name “3-day guarantee”.
Per child, not per family: The 72-hour entitlement applies to each child individually. If you have two children in care, each child gets up to 72 subsidised hours per fortnight — you don't need to split the hours between them.
Who benefits most
The 3-day guarantee was designed to help families who were previously disadvantaged by the activity test. The biggest beneficiaries include:
- Stay-at-home parents — families where one or both parents are not in paid work, study, or formal volunteering. Previously, these families received little or no subsidised care. Now they can access up to 3 days per week.
- Parents between jobs — if you've recently been made redundant, left a job, or are taking time out, you no longer lose your subsidised hours during the gap. The guarantee provides continuity of care for your child.
- Parents with health conditions or caring responsibilities — those who couldn't meet the activity test due to illness, disability, or caring for other family members now have guaranteed access.
- Parents considering returning to work — the guarantee provides subsidised care before you start a job, making it easier to attend interviews, complete training, or transition back to work without paying full unsubsidised fees during the process.
- Casual or seasonal workers — parents whose hours fluctuate significantly no longer risk losing subsidised care during quiet periods. The floor of 72 hours provides stability.
For families where both parents already work 24+ hours per week, the guarantee doesn't change anything — you were already well above the 72-hour floor.
When you still need the activity test
The 3-day guarantee sets the minimum — but if you need more than 3 days per week, the activity test still matters. Here's when:
| Days needed per week | Hours needed per fortnight | Activity requirement |
|---|---|---|
| Up to 3 days | Up to 72 hours | None (3-day guarantee) |
| 4 to 5 days | 73 to 100 hours | 48+ hours of activity per fortnight (both parents) |
The activity test applies to whichever parent does the least activity. If one parent works full-time but the other does zero hours, the activity test result is based on the parent with zero hours. Under the old rules, this meant the family might get very few subsidised hours. Under the new rules, they're guaranteed 72 hours regardless — but they still can't access 100 hours unless the lower-activity parent also meets the 48-hour threshold.
Worked example: stay-at-home parent
Before the 3-day guarantee:
With zero hours of activity for Rachel (the lower-activity parent), the family qualified for only 24 subsidised hours per fortnight under the old rules — about 1 day per week. The other 2 days would be entirely unsubsidised, costing an extra $280 per week at the full fee.
After the 3-day guarantee:
Rachel's family now receives 72 subsidised hours per fortnight regardless of her activity level. All 3 days per week are subsidised.
The financial impact:
Combined income of $95,000 puts them at an 88% CCS rate (2 brackets above the $85,279 threshold).
| Per day | Per week (3 days) | Per year (50 weeks) | |
|---|---|---|---|
| Gross fee | $140.00 | $420.00 | $21,000 |
| CCS covers (88%) | $123.20 | $369.60 | $18,480 |
| Gap fee (what Rachel pays) | $16.80 | $50.40 | $2,520 |
The bottom line: Under the old rules, Rachel would have paid approximately $16,520 per year (1 subsidised day + 2 unsubsidised days). Under the 3-day guarantee, she pays just $2,520 per year — a saving of almost $14,000 per year.
Worked example: returning to work part-time
During the job-search phase (before Aisha starts working):
With Aisha doing zero hours of activity, the family's subsidised hours depend on the 3-day guarantee. They receive 72 hours per fortnight — enough for 3 days of 12-hour sessions. All 3 days are subsidised at the maximum 90% rate (income below $85,279).
| Per week (3 days) | Per year | |
|---|---|---|
| Gross fee | $450 | $22,500 |
| CCS covers (90%) | $405 | $20,250 |
| Gap fee | $45 | $2,250 |
After Aisha starts working 2 days per week:
Combined income rises to approximately $98,000 ($80,000 + $18,000). CCS rate drops to 87% (3 brackets above threshold). With 2 days of work (16 hours per fortnight), Aisha still falls in the 8–16 hour activity band — which also gives 72 hours. All 3 days remain subsidised.
| Per week (3 days) | Per year | |
|---|---|---|
| Gross fee | $450 | $22,500 |
| CCS covers (87%) | $391.50 | $19,575 |
| Gap fee | $58.50 | $2,925 |
The key insight: The 3-day guarantee gave Aisha subsidised care while she was job-searching — before she had any activity hours at all. This made the transition to work financially feasible. The cost increased only marginally ($675/yr) when she started working, because the higher income slightly reduced the CCS rate. Use our Back-to-Work Calculator to model this transition for your own situation.
The income test hasn't changed
It's worth emphasising what the 3-day guarantee doesn't change:
- Your CCS percentage is still based on family income. A family earning $200,000 still gets 67% — the guarantee just ensures they can use that 67% for at least 72 hours per fortnight.
- Hourly rate caps are unchanged. The government still subsidises up to $14.63/hour for centre-based day care (below school age), $12.81 for school-age and OSHC, $12.43 for family day care, and $35.40 for in-home care.
- The 5% withholding still applies. Services Australia withholds 5% of your CCS each fortnight as a buffer, reconciled after the financial year.
- The annual cap still applies. Families earning above $85,279 have an annual CCS cap of $11,003 per child.
- You still need to meet basic eligibility. The child must be 13 or under, attend an approved provider, and the family must meet residency requirements.
In short, the guarantee expanded access (who can use subsidised hours) without changing the generosity (how much subsidy you get per hour). For a full breakdown of how the income test works, see our CCS Income Test Explained guide.
How to access the 3-day guarantee
If you already receive CCS: The guarantee is applied automatically. You don't need to do anything — your subsidised hours entitlement was updated from 5 January 2026. Check your Centrelink account to confirm.
If you don't currently receive CCS: You need to apply for CCS through myGov. The steps are:
- Create or log in to your myGov account and link it to Centrelink
- Submit a CCS claim through your Centrelink online account
- Provide your family income estimate for the current financial year
- Your childcare provider sends an enrolment notice — confirm it within 14 days
Once approved, you'll automatically receive the 3-day guarantee — no separate application is needed. CCS claims are typically processed within 1 to 2 weeks.
Common questions
Can I split the 72 hours across different providers?
Yes. The 72-hour entitlement is per child, not per provider. If your child attends two different services (e.g. long day care 2 days + family day care 1 day), the combined hours are drawn from the same 72-hour allocation.
What happens if my child uses fewer than 72 hours?
Nothing. Unused hours don't roll over or accumulate. The 72 hours reset each fortnight. There's no requirement to use the full entitlement.
Does the guarantee apply during school holidays (vacation care)?
Yes. The 72-hour entitlement applies to all approved care types, including vacation care during school holidays. The hourly rate cap for OSHC/vacation care is $12.81.
What if both parents work but one does fewer than 48 hours per fortnight?
You still get the 72-hour guarantee. The higher 100-hour entitlement only kicks in when the lower-activity parent reaches 48+ hours per fortnight. For example, if one parent works full-time (80 hours/fortnight) and the other works 2 days (16 hours/fortnight), the family gets 72 subsidised hours — not 100.
Want to see exactly how the 3-day guarantee affects your family's childcare costs? Use our free CCS calculator for a personalised estimate.