These are the changes happening from January 2026 and what they mean for your hip pocket.
Child Care Subsidy - 3 Day Guarantee
From 5 January 2026, the Child Care Subsidy activity test will be replaced, giving eligible families at least 3 days of subsided childcare a week, no matter how much time they spend in recognised participation, like work or study. This is known as the ‘3 Day Guarantee’.
If you’re already getting Child Care Subsidy, you don’t need to do anything. Services Australia will apply the updates.
The changes help families who missed out under the activity test access early childhood education and care by giving families at least 3 days of subsidised child care a week.
Aboriginal and Torres Strait Islander children can get 100 hours of subsidised care each fortnight.
Families will still need to pay a gap fee or out of pocket cost to their childcare provider, based on their Child Care Subsidy percentage. There is no change to how the rate of subsidy is worked out.
For more information about the change and how to claim Child Care Subsidy, go to servicesaustralia.gov.au/childcaresubsidy.
More help with dental costs for kids
From January, the Child Dental Benefits Schedule will cover even more costs of going to the dentist for eligible children and their families.
Child Dental Benefits Schedule is a government program that can cover part or all of the cost of basic dental services for children aged 17 or under.
This can cover up to$1,158 every two years, an increase of $26 from 1 January 2026. This could be over $9,800 in coverage by the time they turn 17.
We’ll be sending letters in early January to eligible families. Keep an eye on your myGov inbox. If you don’t have a myGov account, the letter will be sent via post.
For more information about Child Dental Benefits Schedule, visit www.servicesaustralia.gov.au/child-dental-benefits-schedule.
Cheaper Medicine on the PBS
From 1 January 2026 the maximum cost of a Pharmaceutical Benefits Scheme (PBS) prescription will fall from $31.60 to $25 for people without a Commonwealth concession card.
This will reduce out-of-pocket costs for medicines for millions of Australians. For more information about the PBS, visit www.servicesaustralia.gov.au/pharmaceutical-benefits-scheme.
Until next time.
Hank Jongen
General Manager
Services Australia