On 5 January 2026, the Australian Government introduced the 3 Day Guarantee, giving eligible Child Care Subsidy (CCS) eligible families access to at least three days of subsidised childcare each week. Replacing the previous activity test, this change makes early education more accessible to families, regardless of their work or study commitments.
Key Takeaways
- 72 hours of subsidised childcare: All CCS-eligible families can access at least 72 hours per fortnight (the equivalent to three days a week).
- No minimum activity requirement: Families can access subsidised care regardless of their employment or study commitments.
- Childcare isn’t free: Families generally still pay a gap fee, with subsidy amounts based on household income.
- Additional subsidised hours: Eligible families may receive up to 100 hours per fortnight.
- Free Kinder: Victorian families may also benefit from Free Kinder funding alongside CCS to further reduce kindergarten costs.
- Flexible attendance: Subsidised hours can be used across the fortnight but don’t roll over.
What is the 3 Day Guarantee?
Under the Australian Government’s childcare subsidy changes, the 3 Day Guarantee ensures that all CCS- eligible families can access at least 72 hours of subsidised childcare per fortnight, equivalent to three days a week.
Previously, families needed to meet certain activity requirements, such as working or studying, to receive subsidised hours. The new arrangement removes this minimum requirement, making early education more accessible for families with different work and care arrangements.
The 3 Day Guarantee for childcare applies across approved services, including Village’s nursery, toddler and three- and four-year-old kindergarten programs delivered within long day care.
Impact of the new CCS changes
The 3 Day Guarantee childcare subsidy changes make care available to more families, however, it doesn’t mean three days of free care. Here’s what the changes to the childcare subsidy in 2026 mean for costs and eligibility.
| What changes in the new CCS 2026 | What doesn’t change in the new CCS |
| CCS-eligible families can access at least 72 hours of subsidised childcare every fortnight. This provides a guaranteed minimum of subsidised hours, regardless of how much parents work or study. | Families still pay the gap fee. The CCS new update covers a portion of approved childcare fees, with families generally paying the remaining amount. The 3 Day Childcare Guarantee doesn’t provide three days of free childcare. |
| Families who previously didn’t meet the activity test may now be eligible for subsidised hours. This can benefit families with a stay-at-home parent, parents on parental leave, those working casual or part-time hours, or families receiving government support. | CCS eligibility requirements still apply. Families must use an approved childcare service, be responsible for childcare fees and meet residency requirements. Children must also meet age and immunisation requirements. |
| The previous activity test no longer determines whether eligible families receive the minimum 72 hours. Families may still qualify for up to 100 subsidised hours per fortnight in certain circumstances. | Subsidy percentages are still income-based. The amount of CCS a family receives continues to depend on factors including household income, the type of care used and applicable hourly rate caps. |
| Eligible families have a guaranteed minimum number of subsidised hours. This gives parents more flexibility when planning their child’s early education. | Childcare places are not guaranteed. Families still need to secure an available place with their chosen childcare provider. |
Families who already receive CCS don’t need to reapply for the 3 Day Guarantee. Those who haven’t claimed before will need to apply through Services Australia and have their eligibility confirmed.
For more information about eligibility and how the new childcare subsidy works, read our Guide to the Child Care Subsidy.
Frequently asked questions
Does the 3 Day Guarantee mean free childcare?
No, the 3 Day Guarantee for childcare doesn’t mean three days are free. The childcare subsidy changes ensure eligible families can receive government subsidies for at least 72 hours of childcare per fortnight, helping reduce their out-of-pocket costs.
Families will generally still need to pay the gap fee, which is the difference between the childcare provider’s fees and the subsidy they receive.
What’s the difference between Free Kinder and the 3 Day Guarantee?
Free Kinder is a Victorian Government initiative, while the Child Care Subsidy (CCS) 3 Day Guarantee is an Australian Government initiative available nationally.
Free Kinder helps reduce the cost of funded kindergarten programs for eligible three- and four-year-old children in Victoria. At participating long day care centres, this funding is applied as a fee offset rather than making the entire day of care free.
On the other hand, the 3 Day Guarantee for childcare ensures families who qualify for the CCS can access at least 72 hours of subsidised childcare per fortnight, regardless of their work or study commitments.
You can learn more about how the Victorian initiative works in our Guide to Free Kinder.
Can I stack Free Kinder with the 3 Day Guarantee?
Yes. Families enrolled in a participating integrated kindergarten program can take advantage of the new CCS benefits for both Free Kinder and the 3 Day Guarantee, provided they meet the relevant eligibility requirements.
The important distinction is that Free Kinder doesn’t add another 15 hours to your 72 subsidised hours. Instead, the CCS is applied to your eligible childcare fees first, followed by the Victorian Government’s Free Kinder fee offset to further reduce what you pay.
At Village Early Education, our integrated kindergarten program combines funded kindergarten with the flexibility of long day care, giving children access to qualified early childhood teachers and a consistent learning environment.
Enquire with your nearest Village centre to learn more about our kindergarten program and how these savings may apply to your family.
Is the activity test still required?
No, the previous activity test was replaced by the 3 Day Guarantee for childcare on 5 January 2026.
Under the old system, the number of subsidised childcare hours families received depended on how much recognised activity parents undertook, such as paid work, study or volunteering. This meant some families received fewer subsidised hours, or none at all.
The CCS’s new arrangement removes the minimum activity requirement, making subsidised early education more accessible regardless of parents’ employment circumstances. However, recognised participation still matters for families seeking more than 72 subsidised hours per fortnight.
Can I be subsidised for more days of childcare?
Yes. While the 3 Day Guarantee provides at least 72 subsidised hours per fortnight, some families can receive up to 100 hours of subsidised childcare per fortnight.
This applies to families who meet at least one of the following conditions:
- Complete more than 48 hours of recognised participation, such as work or study, per fortnight.
- Care for an Aboriginal and/or Torres Strait Islander child.
- Qualify for an approved exemption or exceptional circumstances.
- Receive Additional Child Care Subsidy (ACCS) payments for child wellbeing, temporary financial hardship or grandparent support.
Your entitlement is assessed by Services Australia based on your family’s circumstances.
Do I have to book 3 days per week to maximise the 3 Day Guarantee?
No. The guarantee is calculated across a fortnight, so families don’t necessarily need to book exactly three days each week.
For example, depending on your centre’s session lengths and availability, your child could attend two days in the first week and four days in the second, provided the total subsidised hours remain within your fortnightly entitlement.
However, unused subsidised hours don’t roll over into the next fortnight. If your child attends two days in week one and three days in week two, you can’t carry the remaining entitlement forward to cover extra days in the following fortnight.
It’s also worth checking session lengths, as CCS is calculated in hours rather than a fixed number of days.
