The Australian Government has now affirmed that the Child Care Subsidy (CCS) Activity Test will officially end in early 2026 in a historic policy change. This is the so-called 3-Day Guarantee reform, which is a step towards a more universal system of early childhood education. The government will make sure that all children have equal access to quality early learning by making sure that a part of the hours subsidised is not dependent on the work or study hours of a parent.
The 3-Day Guarantee: What Is Changing?
The biggest difference is that there is a proposal of the introduction of a baseline entitlement of all eligible families. The former activity test where subsidised hours were strictly confined on the basis of recognised activities of a parent will no longer be applicable to the initial 72 hours of care per fortnight under the new rules. This is a sure way of ensuring three days of subsidised care per week of any child whether their parents are working, studying or volunteering. This reform is meant to offer some relief in terms of cost of living, and at the same time make sure that children in households that are not active in their early years are not shut out of early education.
New Eligibility Rules for 2026
Though the activity test is being substituted in the first 72 block, the latter has not been completely eliminated. Families have to meet a set of criteria in order to get the full benefit of 100 hours of subsidised care per fortnight. In particular, the participating hours of both parents (in case of a partnership) should exceed 48 hours per fortnight. Nonetheless, there is still a significant exception to this case concerning the First Nation families: Aboriginal and Torres Strait Islander children will automatically be entitled to receive 100 hours of subsidised care, regardless of the activity level of their parents.
Timeline and Key Dates of Implementation
The start of the new system will be on January 5, 2026. The current test of activity will not change until the year 2025. In the case of families that are already receiving CCS, the government has already assured that the 72-hour baseline will automatically increase. Recipients will not need to reapply but rather the system will modify the entitlements according to the new 2026 legislation. Accounts of families that were previously given 0, 24 or 36 hours of support will be updated during the first week of January.
Effects on Family Budgets and Fees
The average family will save around 1,370 a year with some of the low-income earners saving more than 11000 a year due to the replacement of the activity test. It must be mentioned though that the 3-Day Guarantee does not have an impact on the percentage of subsidy, it affects the number of hours of subsidy. Your personal income and non-insurance payment will continue to be calculated with the assistance of your family revenue and the everyday payments of your provider. To understand the specific savings of families under the 2026 rules, families are advised to use the official calculator, which is named Starting Blocks.
Parents Transition Steps
To get ready to roll out in January, The government advises parents to check their existing myGov and Centrelink account information. You can avoid issues on the transition point by ensuring that your family income estimation is correct and that the records of the immunisation of your child have been updated. New families wanting to enroll in the 2026 school year can start the claim process now but the extended hours will not be billed to your account until the official school opening date on January 5.
CCS 2026 Update Summary
| Feature | 2025 (Current) | 2026 (New Rule) |
| Minimum Subsidised Hours | 0 – 36 hours (based on activity) | 72 hours (Guaranteed) |
| Maximum Subsidised Hours | 100 hours (requires >48h activity) | 100 hours (requires >48h activity) |
| First Nations Children | 36 hours (minimum) | 100 hours (Guaranteed) |
| Effective Date | Ongoing | January 5, 2026 |
FAQs
1. Is there anything I should do to acquire the additional hours?
No. Unless you already get CCS, you will automatically have the right to 72 hours per fortnight on January 5, 2026.
2. This does not imply that child care has been free on 3 days.
No. The subsidised hours are called the guarantee. You will also be required to make the gap fee, which is the difference between what is subsidized by the government and what is charged by your center.
3. What would happen in cases where I would work over 48 hours per week?
In case you are already entitled to 100 hours of subsidised care due to your working or studying hours, your claim will not change. The new regulation just increases the level of those who are not particularly active.
Disclaimer
The information is informational in nature. You may refer to the official sources; we are trying to ensure that the information offered to all users is accurate.
