If you have been putting off starting your child in childcare because of cost, or you have been frustrated that you could only access one or two subsidised days, this change is for you.
From 5 January 2026, the Australian Government replaced the Child Care Subsidy (CCS) activity test with something much simpler: a guarantee. Every CCS-eligible family is now entitled to at least three days of subsidised early childhood education and care per week, no matter how many hours you work, study, or volunteer.
It is one of the most significant changes to childcare funding in years, and for many families, it means the door to quality early learning just got a lot easier to walk through.
Here is what changed, who benefits, and what you need to do (spoiler: if your child is already in care, you may not have to do anything).
What Was the Activity Test, and Why Did It Change?
Before January 2026, the amount of subsidised childcare a family could access each fortnight was tied directly to how many hours parents spent in work, study, training, volunteering, or job searching. This was called the activity test.
Under that system, a stay-at-home parent might receive just 24 hours of subsidised care per fortnight, the equivalent of one day a week. A family where one partner worked only a few hours casually could find themselves in a similar position, even if they genuinely needed more care.
The problem was clear: children whose families could not meet the activity threshold were missing out on the developmental benefits of early learning, not because their families did not want it for them, but because the funding rules were not designed with their reality in mind.
The 3 Day Guarantee replaced the Activity Test for the first 72 hours of care each fortnight. You no longer need to prove a certain number of work or study hours to access those initial three days of subsidised child care for your child.
Who is Eligible?
If your family earns a combined household income under $533,280 per year and you are eligible for CCS, you can access the 3 Day Guarantee. That covers the vast majority of Australian families with young children.
To receive CCS, you still need to meet some basic requirements through Services Australia, which administers the subsidy. Your child must be attending an approved child care service (like Kiddie Garden), and your family details including income estimates and care arrangements need to be up to date in your Centrelink online account.
If your family already qualifies for more than 72 hours of subsidised care per fortnight because of your work or study commitments, your existing entitlement stays the same. The 3 Day Guarantee provides a minimum floor of support. It does not reduce what families with higher participation levels already receive.
How subsidised hours have changed for common family situations:
| Family situation | Hours per fortnight (before) | Hours per fortnight (now) |
|---|---|---|
Stay-at-home parent | 24 hours (1 day) | 72 hours (3 days) |
Casual worker, few hours | 24 to 36 hours | 72 hours (3 days) |
Part-time worker or student | 72 hours (3 days) | 72 hours (no change) |
Full-time worker (48+ hours/fortnight) | 100 hours (5 days) | 100 hours (no change) |
Aboriginal or Torres Strait Islander child | 36 hours | 100 hours (5 days) |
Does That Make Child Care Free Now?
This is one of the most common questions parents are asking, and the short answer is no. The 3 Day Guarantee provides subsidised care, not free care. What your family pays out of pocket still depends on your CCS percentage, your service’s daily fees (at Kiddie Garden they vary by room) and your household income.
That said, the savings can be substantial. Families earning between $50,000 and $100,000 are expected to save around $1,460 per year on average. Some families could save upwards of $11,400 annually depending on how many days of care their child attends and how much subsidy they were missing out on under the old Activity Test.
The subsidy reduces the fee your child care service charges, and you pay the remaining gap. For many families, this reform means the gap between what CCS covers and what your service charges is now significantly smaller.
What This Means for Aboriginal and Torres Strait Islander Families
The 3 Day Guarantee goes further for Aboriginal and Torres Strait Islander families. Every Aboriginal and Torres Strait Islander child can now receive up to 100 hours of subsidised child care per fortnight, regardless of their family’s participation level. That is roughly five days of care each week.
This provision recognises the unique barriers that Indigenous Australians, including Aboriginal Australians and Torres Strait Islanders, have faced in accessing subsidised childcare. Under the old Activity Test, many First Nations families were locked out of subsidised care entirely. The test linked a child’s access to learning with their parents’ employment situation rather than what the child needed to grow and develop.
SNAICC, the National Voice for our Children and the peak body representing Aboriginal and Torres Strait Islander children and families, played a central role in advocating for this reform. SNAICC CEO Catherine Liddle described the changes as life changing for thousands of Aboriginal and Torres Strait Islander children and families. For years, SNAICC has pushed for the removal of the Activity Test, arguing that it prevented the most vulnerable children from accessing the education they needed during the most formative years of their development.
The evidence supports this position. Research consistently shows that early childhood education improves school readiness, cognitive development and social skills. For Aboriginal and Torres Strait Islander children, access to culturally safe early learning environments through Aboriginal community controlled organisations delivers even stronger outcomes. These services provide more than child care. They foster connection to culture, community and Country while supporting the whole family.
Only around one third of Aboriginal and Torres Strait Islander children are considered developmentally on track when they start school. Expanding access to quality early learning is one of the most effective ways to close that gap. The 100 hours of subsidised care per fortnight gives First Nations families the opportunity to engage with early education on terms that work for them.
If your family cares for an Aboriginal or Torres Strait Islander child and you would like to access the full 100 hours, you can update your details through your Centrelink online account via Services Australia. It is voluntary to share this information, and choosing not to will not affect your access to the standard 72 hours per fortnight.
How Does This Work With NSW Fee Relief?
The good news for Parramatta and Parramatta North parents, is you may be eligible for both the NSW Government’s Start Strong program, which sits alongside the federal Child Care Subsidy and the 3 day guarantee.
The NSW Department of Education administers Start Strong, which provides fee relief for children in the two years before school who are enrolled in eligible early education and care services. In 2026, this program offers two categories of relief depending on your child’s age and circumstances.
Children eligible for the maximum fee relief rate can receive up to $4,456 per year in community preschools and up to $2,563 per year in long day care for four year olds. All other children can receive up to $3,565 per year in community preschools or up to $1,783 per year in long day care.
You might notice the community preschool figures are higher. That is because many community preschools are not approved for the federal Child Care Subsidy, so Start Strong fee relief is often the only government support reducing their fees. In long day care, CCS is applied first and covers a significant portion of the cost, with Start Strong then layered on top as an additional reduction. The end result for families can be similar, but the funding comes through different channels depending on the type of service your child attends.
Children who may qualify for the maximum rate include Aboriginal and Torres Strait Islander children, those enrolled in services located in regional or remote areas, those in areas of greater socioeconomic disadvantage and those attending services operated by Aboriginal Community Controlled Organisations.
Start Strong fee relief is applied after CCS, which means your federal subsidy reduces the fee first and then the NSW fee relief further reduces what you pay. For some families, this combination of federal and state support can bring the cost of preschool education down to less than $20 a day.
To access Start Strong fee relief, you will need to complete a declaration form at the service where your child is enrolled. You can only receive fee relief from one service at a time.
Why Three Days of Early Learning Matters for Your Child
Beyond making childcare more affordable for families, the 3 Day Guarantee is designed around what we know about child development. Three consistent days of subsidised childcare each week gives your child the time and space to form friendships, develop confidence, establish routines and build the social and emotional skills they will carry into school and beyond.
Quality early education programs nurture curiosity and creativity while giving children a sense of belonging. Children who attend pre-school programs regularly tend to have stronger literacy and numeracy foundations, better emotional regulation and smoother transitions into formal schooling.
For families who were previously limited to one or two subsidised days per week, this reform opens the door to a more consistent learning experience. Children thrive when they have regular time with their educators and peers in an environment where they feel safe and supported.
What You Need to Do
If you are already receiving CCS, the changes should apply to your family from 5 January 2026. However, it is worth checking your details with Services Australia to make sure everything is current, including your income estimate and care arrangements in your Centrelink online account.
If you are not currently receiving CCS, now is a great time to check whether your family is eligible through the Services Australia website.
Talk to your child care service about how they structure their sessions. Some services offer 10 to 12 hour days while others offer shorter sessions, and this affects how the 72 hours per fortnight applies in practice.
Keep in mind that the 3 Day Guarantee does not mean you are guaranteed a place at a particular service. Families still need to secure a spot with their chosen provider. With more families now eligible for additional subsidised hours, demand for places may increase, so it is worth planning ahead. If you’re considering enrolling at Kiddie Garden, you can complete our pre-enrolment form here and book an orientation.
The Bigger Picture
The 3 Day Guarantee is part of a broader commitment by the Australian Government to make early childhood education more accessible across Australia, alongside $1 billion in funding to build and expand 160 new child care centres nationwide.
Organisations like SNAICC, Thrive by Five, The Front Project and The Parenthood have welcomed the reform as a foundational step toward a universal early education system. The removal of the Activity Test removes a barrier that disproportionately affected families who needed support the most.
For you as a parent, the bottom line is this. Your child now has greater access to the early learning experiences that set them up for a strong future, and you have more flexibility to manage work, study or whatever your family needs without worrying about losing subsidised care.
Every child deserves a solid foundation, and the 3 Day Guarantee is a meaningful step in making that possible for Australian families.