CCS data report: March quarter 2026 shows shifting demand, fee growth and $3.59 billion investment

The Australian Government has released the latest Child Care Subsidy (CCS) Data Report, providing a detailed snapshot of early childhood education and care (ECEC) participation, service availability, fees and government investment during the March quarter 2026.

The report highlights a sector that continues to support almost one million Australian families, while also revealing changing patterns in service use, modest fee increases and ongoing shifts across different care types.

Quarterly CCS reporting remains one of the sector’s most important data sources, informing policy decisions, affordability settings, service planning and understanding of how families access approved care.

A total of 1,479,580 children attended a CCS-approved service during the March quarter 2026.

Of these, 1,413,870 children were allocated a Customer Reference Number (CRN) and are included in the detailed analysis within the report.

Compared with the March quarter 2025:

• the number of children using care decreased by 2.1 per cent
• 49.0 per cent of children aged 0–5 years accessed approved care
• 34.2 per cent of children aged 0–12 years accessed approved care

Centre Based Day Care (CBDC) remained the most commonly used care type, with 59.0 per cent of children attending CBDC services, followed by Outside School Hours Care (OSHC) at 40.9 per cent.

Family Day Care (FDC) accounted for 4.8 per cent of children using approved care.

Participation among Aboriginal and Torres Strait Islander children increased, with 68,910 children accessing CCS-approved care, representing a 2.3 per cent increase compared with the previous year.

The report shows 998,500 families accessed CCS-approved care during the March quarter 2026, representing a 1.7 per cent decrease compared with the same period in 2025.

Across support measures:

• 32,760 families accessed Additional Child Care Subsidy (ACCS)
• 184,430 families accessed the Multiple Child Subsidy (MCS)

New South Wales continued to represent the largest share of families using Centre Based Day Care, accounting for 32.6 per cent of CBDC families nationally.

Service numbers continue to shift

There were 15,393 CCS-approved services operating nationally during the quarter.

The service profile included:

• 9,920 Centre Based Day Care services (64.4 per cent)
• 5,118 Outside School Hours Care services (33.2 per cent)

Compared with March quarter 2025:

• CBDC services increased by 2.9 per cent, adding 277 services
• OSHC services decreased slightly by 0.3 per cent
• FDC services decreased by 7.3 per cent

The continued decline in Family Day Care reflects an ongoing structural shift in the composition of Australia’s approved care sector.

Attendance remains stable

Children attended an average of 27.8 hours per week, largely unchanged compared with the March quarter 2025.

Within Centre Based Day Care, average weekly hours varied across jurisdictions, with:

• Northern Territory recording the highest average attendance at 39.1 hours per week
• Tasmania recording the lowest at 28.4 hours per week

The stability in weekly hours indicates consistent patterns in how families are using approved care.

Fees increase by 4.3 per cent

The average hourly fee across all CCS-approved care types reached $13.75, representing a 4.3 per cent increase compared with March quarter 2025.

Average hourly fees by care type included:

• Centre Based Day Care: $14.50
• Outside School Hours Care: $9.70

Most services remained below their relevant hourly rate cap, including:

• 59.1 per cent of CBDC services
• 84.6 per cent of OSHC services
• 47.1 per cent of FDC services

Fee movements continue to be closely monitored as governments, providers and families navigate affordability, operational sustainability and broader sector reforms.

Government investment remains significant

Australian Government CCS and ACCS expenditure totalled an estimated $3.59 billion for the March quarter 2026.

This represented a slight 0.2 per cent decrease compared with the same period in 2025.

Centre Based Day Care accounted for the majority of subsidy expenditure, receiving $3.04 billion, or 84.8 per cent of total CCS and ACCS payments.

Additional Child Care Subsidy payments totalled $205 million.

What the data tells the sector

The March quarter 2026 CCS data highlights a sector that remains a significant part of Australia’s social and economic infrastructure.

Key trends include:

• continued high participation in approved early learning
• growth in Centre Based Day Care services
• ongoing decline in Family Day Care availability
• increased participation among Aboriginal and Torres Strait Islander children
• moderate fee growth
• stable government subsidy investment

However the decline in children and families using care may also point to softer utilisation across parts of the long day care market. While Centre Based Day Care service numbers increased by 2.9 per cent over the year, the number of children using care decreased overall, suggesting providers may need to monitor occupancy, enrolment patterns and local demand closely.

For approved providers, the report provides valuable insights to support strategic planning, including enrolment forecasting, fee reviews, service growth decisions and understanding changing family demand.

As major ECEC reforms continue to progress, quarterly CCS data remains an important measure of how the system is evolving and where future opportunities and challenges may emerge.