What Happened to the CCS Activity Test? The 3 Day Guarantee

The CCS Activity Test Was Replaced by the 3 Day Guarantee

Navigating government subsidies can often feel confusing, and the Child Care Subsidy (CCS) is no exception. Many families ask us about the 'activity test'. Its role changed significantly in January 2026, and it no longer determines how many subsidised hours most families receive.

We believe every family deserves to understand how these systems work so you can plan for your child’s early learning journey. This guide will simply and clearly explain what replaced the old activity test rules, what counts as an activity now, and how it all connects to your child’s time at our centres in Mooroolbark and Bayswater.

What Is the Purpose of the Activity Test?

From January 2026, the old activity test system was replaced by the 3 Day Guarantee. This means all CCS-eligible families are now entitled to at least 72 hours of subsidised childcare per fortnight, regardless of their work or study hours. The activity test is now only used to determine if your family can access the higher rate of 100 subsidised hours per fortnight.

Previously, the system linked your activity level directly to different tiers of subsidised hours. The new system provides a strong base of 72 hours for all eligible families to support participation in early childhood education.

It’s important to remember that two other factors still affect your subsidy: your family's combined income (which determines your CCS percentage) and the type of childcare service you use (which affects the hourly rate cap). The 3 Day Guarantee and activity test now specifically deal with the hours component of your subsidy.

What Counts as a Recognised Activity?

While all eligible families now receive at least 72 hours of subsidised care, recognised activities are still important. If your family participates in more than 48 hours of recognised activity per fortnight, you can access up to 100 hours. Your activity hours can be a combination of any of the following:

• Paid work: This includes being an employee or running your own business. It also covers periods of paid leave, such as annual leave or sick leave.
• Study and training: Enrolling in an approved course of education or study, like a TAFE course or university degree, counts.
• Unpaid work: If you perform unpaid work for a family business owned by a parent or partner, these hours are included.
• Actively looking for work: Recognised job search activities, such as applying for jobs, preparing resumes, or attending interviews, all count.
• Volunteering: Giving your time to a charitable or community organisation is a recognised activity.
• Self-employment: Time spent actively running your own business or start-up.
• Parental Leave: If you are on paid or unpaid parental leave and intend to return to work, you still meet the activity test.

A helpful tip is that travel time also counts. You can include the time it takes to travel between our childcare centre and your place of work or study. For many families in areas like Bayswater and Mooroolbark, this can add up to a few extra hours per fortnight.

How Your Activity Hours Affect Your Subsidy Hours

From January 2026, a simpler two-level system replaced the old activity test tiers. The number of subsidised hours your family can get is now determined as follows:

• Base Entitlement: 72 hours per fortnight. All families eligible for CCS receive at least 72 hours of subsidised care per fortnight for each child. This applies regardless of how much you work, study or volunteer.
• Higher Entitlement: 100 hours per fortnight. You can access up to 100 hours of subsidised care per fortnight for each child if your family meets one of the following criteria:
  • You have more than 48 hours of recognised activity per fortnight.
  • You have an Aboriginal and/or Torres Strait Islander child in your care.

If you think your family may qualify for 100 hours, check how your activity is assessed with Services Australia.

The previous provision for low-income families to access 24 hours of care has also been replaced. The new 72-hour base entitlement provides greater access for all eligible families.

Are There Any Exemptions to the Activity Test?

Yes, the government recognises some families have unique circumstances. The 3 Day Guarantee gives all eligible families at least 72 hours, and families with an Aboriginal or Torres Strait Islander child get up to 100 hours. For other special circumstances, check with Services Australia.

Common exemptions include:

• You or your partner are receiving a Carer Payment or Carer Allowance from Services Australia.
• You are a grandparent and the principal carer of your grandchild.
• You are experiencing temporary financial hardship or a family tragedy.

Children attending a preschool or kinder programme (like our fully funded Three-Year-Old Kinder programme) receive their subsidy based on these new rules. As of January 2026, families with an Aboriginal or Torres Strait Islander child are entitled to up to 100 hours of subsidised care per fortnight, regardless of their activity level.

Because personal circumstances vary so much, we always advise families to speak directly with Services Australia to see if they qualify for an exemption.

How to Report and Update Your Activity Hours

If your family engages in more than 48 hours of activity per fortnight and you want to claim the 100-hour entitlement, you are responsible for reporting these hours to Services Australia and keeping them up to date. This is done online through your myGov account, which should be linked to your Centrelink account. When you apply for or update your CCS, you will be asked to estimate your activity hours for a typical fortnight.

It's important to provide an accurate estimate. If your work or study hours are irregular, Services Australia recommends you calculate an average over a 3-month period. If you overestimate your activity, you may be paid the correct subsidy. If you underestimate it, you might be paid less than you're entitled to. If anything changes—for example, you get a new job, change from part-time to full-time, or stop studying—you must update your details as soon as possible. Failing to do so could result in you being overpaid, which means you would have a debt to pay back.

How We Support Your Family's Journey

At Meraki, we understand that juggling work, study, and family life is a big task. Our goal is to provide a seamless, supportive, and high-quality early learning experience that works for your family. Our long hours, from 6:30am to 6:30pm, are designed to give parents the flexibility they need to meet their work and study commitments.

Our approved childcare services, including our government-funded Four-Year-Old Kinder programme, mean that your CCS can be applied directly to your fees, making budgeting simpler. With on-site chefs preparing all meals and snacks, you have one less thing to worry about in your busy schedule. Whether you're looking for care near home in Mooroolbark or closer to work in the Bayswater area, our centres are here to help.

While we can't give financial advice, our Centre Directors are always happy to help you understand the enrolment process and how CCS works with our fee structure. We encourage families looking for care in Melbourne's east, from Boronia to Wantirna, to explore our Bayswater childcare centre or our Mooroolbark childcare centre. Please get in touch if you have questions or would like to book a tour.

Frequently asked questions

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