Here's the main changes happening for families, students, carers and pensioners from January 2026 and what it means for your hip pocket.
Child Care Subsidy - 3 Day Guarantee
From 5 January 2026, the Child Care Subsidy activity test will be replaced, giving Child Care Subsidy eligible families at least 3 days of subsided child care a week, no matter how much time they spend in recognised participation, like work or study. This is known as the '3 Day Guarantee'.
If you're already getting Child Care Subsidy, you don't need to do anything. Services Australia will apply the updates - there's no need to call.
The changes help families who missed out under the activity test access early childhood education and care by giving families at least 3 days of subsidised child care a week.
Aboriginal and Torres Strait Islander children can get 100 hours of subsidised care each fortnight.
An estimated 66,700 families are expected to save an average of $1,370 a year in child care costs in the measure's first full financial year.
Families will still need to pay a gap fee or out of pocket cost to their child care provider, based on their Child Care Subsidy percentage. There is no change to how the rate of subsidy is worked out.
