The good news is that you may be able to benefit from both. CCS and Start Strong serve different purposes, but if your family and service meet the relevant eligibility requirements, they can both help reduce the cost of early childhood education and care.

Understanding how each program works makes it easier to estimate your out-of-pocket costs, compare services and plan your family budget. This guide explains the key differences, how the two forms of assistance interact and what NSW families should check in 2026.

Table of contents

• What is the Child Care Subsidy?
• What is Start Strong fee relief?
• How CCS and Start Strong work together
• How much Start Strong fee relief is available?
• An example of combining the two
• What changed for CCS in 2026?
• Questions to ask your childcare service
• Looking beyond fees when choosing care

What is the Child Care Subsidy?

The Child Care Subsidy is an Australian Government payment designed to make approved childcare more affordable. Rather than generally being paid directly to parents, CCS is usually paid to an approved childcare provider and passed on as a reduction in the fees your family pays.

How much CCS your family receives depends on factors including your circumstances, income, the type and cost of care, and the number of subsidised hours available.

Because these factors can make two families’ out-of-pocket costs quite different, it is useful to estimate the impact before settling on a childcare schedule. A child care subsidy calculator NSW families can use provides a practical starting point for estimating fees, although any calculator should be treated as a guide rather than a final determination of CCS entitlement.

From 5 January 2026, the Australian Government’s 3 Day Guarantee means CCS-eligible families can access at least 72 hours of subsidised childcare per fortnight, regardless of their activity levels. Some families can receive up to 100 subsidised hours per fortnight where specified conditions are met.

What is Start Strong fee relief?

Start Strong is a NSW Government program aimed at making preschool education more affordable and accessible. It supports eligible preschool-aged children attending participating community and mobile preschools and long day care services.

Unlike CCS, Start Strong is a NSW Government program specifically focused on preschool education. Fee relief is provided through participating services and passed on to eligible families as a reduction in fees.

Importantly, affordability is only one consideration when selecting early education. Families should also ask providers about educator practices, supervision, secure collection procedures, staff training and safety in childcare centres. Looking at fees alongside safety, educational quality and the suitability of the environment gives you a much clearer picture of whether a service is right for your child.

According to the NSW Department of Education, Start Strong supports preschool education for children aged three and above at eligible services. Families should check directly with their service because participation and individual circumstances affect whether fee relief applies.

How CCS and Start Strong work together

The simplest way to understand the two programs is to think of them as separate layers of financial assistance.

For eligible children attending long day care, Start Strong fee relief is applied in addition to CCS rather than replacing it. NSW’s 2026 Start Strong guidelines refer to fee statements showing fee relief after the application of the Child Care Subsidy.

This means it’s best not to look at either figure in isolation. For your family budget, the number that really matters is what you’ll have left to pay after all eligible assistance has been applied.

There’s one important restriction to keep in mind: Start Strong fee relief can only be applied at one participating service at a time. If your child attends more than one eligible service, you’ll need to nominate where the fee relief is applied.

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How much Start Strong fee relief is available?

In 2026, the amount available depends on the type of service, your child’s age and whether they qualify for the maximum fee relief rate.

For eligible long day care services, NSW Government guidance lists the following annual amounts:

*Age eligibility is determined under the program’s 31 July rules.

For eligible community and mobile preschools, families may receive up to $4,456 for children qualifying for the maximum rate or up to $3,565 for other eligible children, depending on enrolment hours.

These figures are for 2026 and can change between program years, so checking the current NSW Department of Education guidance is worthwhile before making financial decisions.

An example of combining the two

Imagine your child attends an eligible long day care service that delivers a preschool program.

Your service has its standard childcare fees. If you qualify for CCS, the subsidy reduces the amount you would otherwise pay for eligible sessions. If your child also qualifies for Start Strong and you have nominated that service for fee relief, the applicable Start Strong amount can further reduce eligible fees.

In simple terms:

Service fees → CCS applied → applicable Start Strong fee relief → remaining family cost

The actual calculation will be more detailed because CCS percentages, hourly caps, session lengths, fee-relief arrangements and individual circumstances vary.

That is why estimates are useful for planning but should not be treated as a guarantee. Your childcare provider and Services Australia can help confirm what applies to your circumstances.

What changed for CCS in 2026?

One of the most significant changes for families this year is the 3 Day Guarantee.

Since 5 January 2026, all CCS-eligible families have been guaranteed at least 72 hours of subsidised childcare per fortnight, equivalent to three days per week. The change replaced the previous activity-test arrangements for determining this minimum entitlement.

Some families may receive 100 hours per fortnight, including those who meet specified recognised participation requirements, care for an Aboriginal or Torres Strait Islander child, have an exemption or exceptional circumstances, or receive certain forms of Additional Child Care Subsidy.

Keep in mind that subsidised hours do not guarantee a childcare place. You still need to secure an enrolment with a provider, and a gap payment may remain after CCS and other applicable assistance.

Questions to ask your childcare service

Before relying on an estimated weekly or fortnightly cost, ask the service for a clear explanation of how its fees and available assistance work.

Useful questions include:

• Does this service participate in Start Strong?
• Is my child eligible for 3-year-old or 4-year-old-and-above fee relief?
• What declaration or consent forms do I need to complete?
• How will Start Strong appear on my fee statement?
• How is CCS applied to my account?
• What will my estimated out-of-pocket cost be?
• Are there fees that are not covered by either program?
• What happens if my child’s attendance pattern changes?
• If my child attends two services, where should I nominate Start Strong fee relief?

Keep copies of relevant enrolment documents, fee statements and correspondence. They can make it much easier to understand changes in your account or resolve questions later.

Looking beyond fees when choosing care

CCS and Start Strong can make a meaningful difference to the cost of early childhood education, but the cheapest advertised daily rate doesn’t necessarily represent the best choice — or even the lowest final cost.

Start by understanding your CCS eligibility and subsidised hours. Then find out whether your chosen service participates in Start Strong and whether your child qualifies for fee relief. Finally, ask the service for an estimate of what your family will actually pay after eligible assistance has been applied. Cost matters, but it should sit alongside educational quality, safety, relationships with educators, location and how well the environment suits your child. When you understand both the financial support available and the quality of care being offered, you can make a much more informed decision for your family.

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