The NCS is designed to be flexible and acknowledges that early learning and childcare needs differ widely across different families. For this reason, NCS subsidies are awarded as an hourly rate, along with a maximum number of weekly hours that the subsidy will be paid for. The actual subsidy payment is based on the hours agreed between the parent and the provider and claimed on the NCS system.
An independent evaluation of the Scheme commenced in March 2026. This evaluation aims to assess the performance of the NCS to date and its operation within the wider early learning and childcare funding and policy environment. The evaluation will examine whether the NCS, as part of the wider funding model, is making high-quality early learning and childcare more accessible and affordable, particularly for families in the lowest income groups and the most disadvantaged households. It will also identify any improvements that could be made to enhance accessibility and affordability and to ensure that the NCS is working for as many families as possible. The evaluation will include consultation and engagement with parents, educators, practitioners, providers and representative organisations. As part of this, the hours-based model of the NCS will be reviewed.