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The Child Care Subsidy (CCS) hourly rate caps will increase from 6 July 2026, in line with annual indexation based on the Consumer Price Index (CPI) for the previous December.
The new rates take effect from 6 July 2026, which is the start of the first CCS fortnight of the 2026–27 financial year.
For family day care, the new CCS hourly rate cap will be $14.08 per hour for both below school age and school age children.
Full details of the CCS rate changes are available here on the Department of Education website.
FDCA has long maintained that the lower CCS hourly rate cap for family day care, compared with centre-based care, is an inequitable market intervention that places the sector at a competitive disadvantage. This disparity directly impacts educators' capacity to be appropriately remunerated, with flow-on effects for affordability, educator attraction and retention, and ultimately the viability of approved services.
Despite growing recognition of the issue, family day care has once again been overlooked in relation to meaningful reform of the CCS hourly rate cap. While annual indexation is welcome, it does not address the underlying inequity of a funding setting that continues to place family day care at a competitive disadvantage compared with other care types. This is particularly disappointing given that both the Australian Competition and Consumer Commission and the Productivity Commission have previously recommended that the family day care CCS hourly rate cap be reviewed and increased to better reflect the cost of delivering quality care and support long-term sector sustainability.
The sector has now endured eight years under a funding setting that was never designed to reflect the true cost of delivering family day care. At a time when educator numbers continue to decline and approved services face mounting viability pressures, the absence of any meaningful action on the CCS hourly rate cap is becoming increasingly difficult to reconcile with the Government's broader commitment to improving access, affordability and sustainability across the ECEC system.
FDCA CEO Andrew Paterson has once again raised these concerns directly with senior Department of Education executives and is pushing for urgent action. FDCA also has a meeting scheduled with Minister Walsh to discuss the future of family day care, with the CCS hourly rate cap remaining a key priority issue.
While the Service Delivery Price Project (SDPP) is expected to play an important role in informing future funding reform, family day care cannot afford to wait indefinitely for action on a problem that has already been clearly identified. However, strong participation in the SDPP remains critical to ensuring the unique operating model, costs and value of family day care are accurately reflected in future funding decisions.
To this end:
A big congratulations to all our members who have been nominated in the 2026 Excellence in Family Day Care Awards so far! Nearly 2000 nominations have already been placed for this year's Awards program, which is a testament to the amazing work done across Australia by educators, services and their staff.
Members that have been nominated after May 30 will receive their official nomination email and be placed on the nomination list when the second round of nominations are released on 22 June.
To nominate someone or a service that you believe deserves to be recognised in this year’s Awards, click here.
To help promote the Awards, you can access a range of resources via the FDCA website that will assist you to spread the word and build awareness of the Awards and family day care.
Tax time is on the horizon and navigating your way through the ins and outs of your tax obligations can be complex and time-consuming. To help support members with their all things tax, FDCA will be sitting down in the coming weeks to record with FDC Tax Guru, Ben Mueller.
Ben, who is the Director and Principal Accountant of FDC Tax, will be sharing his annual Family Day Care Tax presentation and answering questions from FDCA members.
As small operators, it’s essential that educators understand their tax responsibilities to ensure compliance, maximise entitlements, and support the financial sustainability of their business. Therefore, staying informed about current tax requirements is a key part of running a successful and sustainable business.
If you have any questions you would like Ben to answer, simply click here or email your questions to marketing@fdca.com.au before 12 June 2026.
The content of this webinar will be general in nature. As we don’t know your financial needs, you should seek tax, legal or other professional advice before acting or relying on any content.
On Wednesday 17 June from 1.30pm – 2.30pm (AEST), the final webinar in the Strengthening Child Safeguarding Webinar Series, will be held live. This session will explore Trauma-informed Practice in Safeguarding.
The session features Catharine Hydon, Sam Melching and Sam Dellamarta, all members of the Early Childhood Australia (ECA) Rapid Response Taskforce, which you can learn more about here. Sam Dellamarta has worked with FDCA on the Safeguarding Children Resource and presented at the FDCA National Conference.
The ECA webinar series is designed to support educators and service leaders navigating increasingly complex environments, where families are understandably concerned about children’s safety and teams are facing heightened scrutiny.
All webinars are free and recordings will be available to registered participants.
For more information and to register, visit the Early Childhood Australia website.
National Burns Awareness Month is an annual campaign aimed at increasing awareness of burns prevention and promoting the correct first aid treatment for burns.
An initiative led by Kidsafe, Australia’s leading community organisation dedicated to child injury prevention, the campaign is held each winter when the risk of burns and scalds increases.
Burns and scalds are among the most common injuries experienced by young children. One of the leading causes is contact with hot food and drinks. Within family day care settings, there have been instances where children have sustained burns after reaching for hot beverages that were left within their reach. While a simple cup of tea or coffee may seem harmless, it can cause serious injury to a child. Simple preventative measures can significantly reduce the risk.
Consider incorporating these safety practices into your daily routine:
Kidsafe has also developed a selection of BurnSafe learning resources for children. These resources help children understand how easily burns can happen, identify ways to stay safe and to learn basic burns first aid.
For more information about National Burns Awareness Month and to access resources, visit the Kidsafe website.
National child safety training through Geccko is now mandatory for all educators, coordinators, staff members and volunteers working or volunteering in an early childhood education and care service regulated under the National Quality Framework (NQF).
To complete the mandatory foundation training, individuals are required to:
Services, educators and volunteers may wish to:
Advanced training coming soon
Advanced child safety training will be available from July 2026 and will build on foundation modules. This additional training will be mandatory for certain roles within the sector.
Further information regarding advanced training requirements will be shared once available.
Further information, support resources and access to the training are available through the Australian Government Department of Education Website and ACECQA.
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