Childcare providers prepare for new 3 Day Guarantee reforms

From 5 January 2026, all Child Care Subsidy (CCS) eligible families will be entitled to at least 72 hours of subsidised care per fortnight under the Australian Government’s new “3 Day Guarantee”.

The change is designed to make early childhood education and care (ECEC) more accessible, particularly for families with limited recognised activity hours, ensuring all children have regular access to early learning.

Under the new arrangements, every CCS-eligible family will receive a minimum of 72 hours (equivalent to around three days) of subsidised care per fortnight for each child.

Families will continue to pay a gap fee, except in approved circumstances, but the reform provides greater flexibility and security for families who may previously have been limited by their activity test results.

Some families will continue to be eligible for up to 100 hours of subsidised care per fortnight if they:

• Are caring for an Aboriginal or Torres Strait Islander child
• Have more than 48 hours of recognised participation each fortnight
• Have an exemption or are experiencing exceptional circumstances
• Receive Additional Child Care Subsidy (ACCS) including child wellbeing, temporary financial hardship, or grandparent payments.

What centre managers and approved providers need to know

The Department of Education advises that the change will apply automatically through the CCS system from 5 January 2026, meaning services will need to:

• Update family communication to ensure parents understand how the new minimum applies to their entitlements and fees.
• Review enrolment and booking practices to accommodate families accessing their additional hours.
• Check software settings (including third-party child care management systems) to ensure the changes are reflected accurately.
• Provide staff briefings to ensure teams understand the new thresholds when supporting families with subsidy queries.

Centre managers and financial administrators should also be aware that families must remain CCS-eligible to access the 3 Day Guarantee, and the change does not remove requirements to maintain compliance with reporting and attendance processes under the Family Assistance Law.

Supporting equitable access

The reform supports the Government’s broader commitment to increasing access to high-quality early learning for all children, particularly those experiencing vulnerability or disadvantage. It aligns with existing inclusion and participation initiatives designed to strengthen the child care safety net.

For detailed information and guidance for providers, visit the Department of Education’s website.