Do you earn less than $535,279 a year?
Then this change applies to you.

And it is the biggest shift in early childhood affordability in more than 20 years.

From January 5, 2026, the way Australian families access affordable early childhood education and care is changing for the better. The new Child Care Subsidy (CCS) system, known as the “3 Day Guarantee,” is designed to make care more accessible and affordable for more families – this change is huge and it will impact more families than any changes have ever done before. At Jenny’s ELC, we’re so excited to see the opportunities these changes open up to both children and their access to more, quality early education, but also families.

The biggest change? The activity test is gone.

Your family’s CCS eligibility will no longer be determined by your work, study, or volunteer hours. Under the new 3 Day Guarantee, every eligible family will receive at least 72 hours of subsidised care per fortnight, regardless of your activity level. This is the equivalent of three full days of care, making it easier for every child to access high-quality early learning and for every family to manage their budget.

Three days. Same budget.
Life-changing for families. Life-changing for children.

What’s changing?

The Government has increased the CCS household income threshold to $535,279.
That means almost every Australian household continues to qualify for CCS.

Alongside this, families will be able to access at least 72 subsidised hours per fortnight, which aligns to three days per week of care.

This change finally makes increasing days realistic. With enough subsidised hours, families can now access more high-quality care and education without the financial pressure that used to stand in the way.

This isn’t a small tweak.
This is the most substantial shift to family affordability and early learning access in two decades.

Example cost impacts

Here are simple, real world style examples that help explain the difference:

For the Family with Part-Time Work:

You are a family with a combined income of $120,000. One parent works 25 hours a week, and the other works 10 hours a week. Your child attends care three days a week.

Previously:

Based on the activity test, you may have only received subsidised hours for two of you  days — leaving one day a week at full fees. That often pushed the weekly cost up over $200 a week.

From January 2026:

You will now receive up to 72 hours subsidised per fortnight — which comfortably covers three days. Your out-of-pocket cost is expected to be around $70-$110 per week instead of more than $200.

Three days becomes doable — not a financial stress point.
This is the real difference the new CCS change creates.
It’s not just access — it’s affordability and possibility.

For the Stay-at-Home Parent:

As a single parent earning around $60,000 and not currently working, you want your child to have access to early learning that supports their development, confidence and social growth.

The old way: Under the old system, you may have only been entitled to 12 or 24 hours of subsidised care per fortnight, making it financially impossible to afford three days a week, with out of pocket expenses of around $160 for two days or $320 for three days.

The new way: You are guaranteed 72 hours of subsidised care. Based on your income, you would receive a 90% subsidy. Your out-of-pocket cost would be around $16 per day, or just $48 per week, instead of $320, giving you the flexibility to focus on your personal and professional goals while your child thrives in care. 

For the Family with Varied Working Hours:

As a family earning around $180,000, both parents work – one full-time and the other casually with varied hours. Your child attends care five days a fortnight and you need flexibility that doesn’t punish inconsistent work patterns.

The old way: The lower activity level would have determined your subsidised hours, potentially limiting your claim to 36 or 72 hours and leaving you with out-of-pocket expenses for the remaining days.

The new way: With the 3 Day Guarantee, you are covered for at least 72 hours per fortnight. Your subsidy percentage would be around 63.4%, making your out-of-pocket cost around $58.56 per day. This provides peace of mind that your care needs are covered, even with inconsistent work hours.

Why three days matters for children and families

Three days gives children a stronger routine, more stable relationships and deeper continuity in learning. Drop offs become easier. Familiarity builds faster. Confidence grows.

For families, three days provides breathing room — room to work, room to study, room to manage life admin, room to simply function without relying heavily on grandparents, neighbours or reshuffling everything to make the week work.

The Benefit Is Clear

The 3 Day Guarantee is a game-changer for flexibility and affordability. It is designed to remove the complex financial calculations and instead provide a simple guarantee that every child can access quality early learning.

Who this supports

This supports you if you work casually, part-time, shift work, gig-work, returning to work, studying, or balancing both.
It supports you if you have two or more children.
It supports you if you’ve always wanted that third day because you know how much early learning matters for their development — but it simply wasn’t financially realistic before.

This isn’t only about people who work more hours.

This is also for families who want to give their children more time to socialise, build friendships, experience learning continuity, and grow their confidence.
Before, the system capped you.
Now it unlocks you.

Now it becomes possible.
Now it becomes accessible.
Now it becomes achievable.

What to do next

If your household income is under $535,279, it’s highly likely you qualify under this new CCS model.

We’ll walk you through a personalised 2026 CCS estimate, and help you choose three days that best support your family rhythm next year.