For families comparing child care costs in Newcastle, Lake Macquarie, Maitland, Port Stephens or the Hunter, the advertised daily fee is only the starting point.
What your family ultimately pays can be considerably lower once the Australian Government’s Child Care Subsidy and any applicable NSW preschool fee relief are applied. Your out-of-pocket cost will depend on your household income, the number and ages of children you have in care, the hours of subsidised care available to you, the service’s session length and what is included in its fees.
We’ver partnered with St Nicholas Early Education to create this guide on how childcare costs work, what has changed in 2026 and how to estimate what your family may actually pay.
How much does childcare cost in Newcastle?
Publicly advertised long day care fees across Newcastle and the Hunter commonly sit in the mid-$100s, with many services charging approximately $130 to $180 per day before subsidies.
However, fees can vary significantly depending on:
- Your child’s age
- The centre and its location
- The length of the booked session
- The number of days required
- What is included, such as meals, nappies and sunscreen
- Whether the service provides a preschool program
- Additional administration, enrolment or late collection fees
Infant and nursery places can sometimes cost more because younger children require higher educator-to-child ratios.
Families can use the Newy with Kids Child Care Guide to compare services by location, then visit individual provider websites or Starting Blocks to check current fees, inclusions, quality ratings and vacancies.
What is the Child Care Subsidy?
The Child Care Subsidy, commonly known as CCS, is an Australian Government payment that reduces the cost of approved child care.
Rather than being paid to families, CCS is generally paid directly to the approved child care provider and applied as a reduction to the family’s fees. The remaining amount is known as the gap fee.
Your CCS entitlement is influenced by:
- Your family’s combined adjusted taxable income
- The type of approved care being used
- Your child’s age
- The number of children your family has in care
- Your recognised participation and circumstances
- The service’s hourly fee and the applicable hourly rate cap
Families must meet the Australian Government’s eligibility requirements and make a CCS claim through Centrelink. Services Australia makes the final determination about each family’s entitlement.
What are the CCS rates for 2026–27?
From 6 July 2026, the standard CCS rates are:
| Combined family income | Standard CCS rate |
| Up to $88,520 | 90% |
| More than $88,520 and below $538,520 | Between 90% and 0%, reducing by one percentage point for every $5,000 of additional income |
| $538,520 or more | 0% |
Families with more than one child aged five or younger in approved care may receive a higher subsidy rate for their second and younger eligible children.
These thresholds are generally indexed each financial year, so families should check the latest information through Services Australia when planning their budget.
How does the CCS hourly rate cap affect your fees?
Your CCS percentage is applied to the lower of:
- The hourly fee charged by the service, or
- The Australian Government’s hourly rate cap.
For centre-based day care, the 2026–27 hourly rate cap for a child below school age is $15.19.
For example, if a service charges $160 for an 11-hour session, the hourly fee is approximately $14.55. Because this is below the hourly rate cap, the family’s CCS percentage can be applied to the full hourly fee.
If the same $160 fee covered a 10-hour session, the hourly fee would be $16. CCS would only be calculated up to the $15.19 hourly cap, and the family would pay the amount above the cap as part of its gap fee.
This is why two centres with the same daily fee can produce different out-of-pocket costs if their session lengths differ.
Services Australia also generally withholds 5% of a family’s CCS to reduce the risk of an overpayment when payments are balanced at the end of the financial year. This means an online estimate and the amount shown on a fee statement may differ slightly.
What is the 3 Day Guarantee?
Since 5 January 2026, all CCS-eligible families can access at least 72 hours of subsidised child care per child each fortnight. This is commonly described as the 3 Day Guarantee.
Some families can access up to 100 subsidised hours per fortnight, depending on their recognised participation and circumstances. Aboriginal and Torres Strait Islander children can also access 100 subsidised hours per fortnight.
The 72-hour entitlement does not necessarily equal three booked days at every centre. The number of sessions covered will depend on the length of the service’s sessions and the family’s booking pattern.
Can families receive both CCS and NSW preschool fee relief?
Eligible families may be able to receive NSW preschool fee relief in addition to CCS when their child attends a preschool program at an eligible long day care service.
In 2026, annual fee relief for eligible children attending long day care is:
- $1,783 or $2,563 for eligible children aged four and above, depending on maximum-funding eligibility
- $423 or $769 for eligible three-year-old children, depending on maximum-funding eligibility
Fee relief is generally applied as a regular reduction after CCS has been deducted. Families must complete a fee relief declaration and can only claim the funding from one service at a time.
The NSW Government has announced that a new Fee Relief for Long Day Care program will replace Start Strong for Long Day Care in 2027. The new program will provide increased fee relief for eligible preschool-aged children, including continued support for eligible three-year-olds. At the time of publication, detailed 2027 funding rates had not yet been released.
Families planning care for 2027 should ask their preferred service what fee relief may apply once the final arrangements are confirmed.
How can you estimate your out-of-pocket childcare costs?
Before comparing centres, collect the following information:
- The daily fee for your child’s age group
- The length of each booked session
- Your estimated combined family income
- Your current CCS percentage and subsidised hours
- The number and ages of children you have in approved care
- Whether preschool fee relief may apply
- Any additional fees or charges
You can then use a Child Care Subsidy calculator to compare different booking patterns and estimate your daily or weekly gap fee.
The St Nicholas Child Care Subsidy Calculator allows families to enter information about their income, care requirements and children in care to receive an indicative estimate of their CCS percentage and potential out-of-pocket costs.
Calculator results are estimates only. Families should confirm their official entitlement with Services Australia and obtain current fee information directly from their preferred centre.
Look beyond the advertised daily fee
Price matters, but the lowest advertised fee will not always provide the best overall value for a family.
When comparing childcare fees in Newcastle and the Hunter, ask each service:
- What is included in the daily fee?
- How long is the booked session?
- Are meals, nappies and sunscreen provided?
- Are there enrolment, bond or administration fees?
- How are absences and public holidays charged?
- Is preschool fee relief available?
- How often are fees reviewed?
- What educational program is delivered?
- Do the operating hours suit your work and travel arrangements?
A centre that includes meals, nappies, learning resources and a preschool program may reduce other costs and preparation for families, even if its headline fee initially appears higher.
Estimating fees with St Nicholas Early Education
St Nicholas Early Education operates 14 centres across Newcastle, Lake Macquarie, Maitland, Port Stephens, the Hunter and Forster.
Fees vary by centre and age group. They include education and care from qualified educators and teachers, learning resources and environments, meals, nappies, sunscreen and age-appropriate learning programs. Preschool fees also include participation in the St Nicholas Transition to School program.
Families can:
- Estimate their potential CCS and out-of-pocket costs
- Find their nearest St Nicholas Early Education centre
- Enquire about availability and current fees
- Book a tour and speak with the centre team
Frequently asked questions
Publicly listed long day care fees commonly range from approximately $130 to $180 per day before CCS and other fee relief. The exact cost varies by centre, age group, session length and inclusions.
Not usually. Families generally pay a gap fee after CCS is applied. CCS is calculated using the lower of the service’s hourly fee or the Australian Government’s hourly rate cap.
CCS-eligible families can access at least 72 subsidised hours per child each fortnight. Whether this covers three booked days depends on the length of the service’s sessions.
Yes, eligible families attending a participating long day care preschool program may receive NSW fee relief in addition to CCS.
No. A calculator provides an estimate based on the information entered. Services Australia determines each family’s official CCS entitlement.
You might also like:
- Child Care in Newcastle, Lake Macquarie & the Hunter: Search by Suburb
- Discover a Place to Flourish at St Nicholas Early Education
- Everything You Need to Know About Starting Preschool in Newcastle, Lake Macquarie, and the Hunter
- Preparing Your Child for School: A Guide to Transitioning & Choosing the Right School for Your Family