CCS With 3+ Children: Who Gets Higher Rate?
Families with three or more young children in care can receive a very different CCS result for each child. Usually the eldest eligible child aged 5 or under gets the standard rate, and younger eligible children may receive the higher rate.
This guide explains how the higher rate works when there are three or more children, what changes when one child turns 6, and what to check before assuming the rate is correct.
The short answer
For families with more than one CCS eligible child aged 5 or under:
- The eldest eligible child aged 5 or under usually gets the standard CCS rate.
- Younger eligible children aged 5 or under may get the higher CCS rate.
- The higher rate is your standard CCS rate plus 30 percentage points, capped at 95%.
- Your combined family income must be under $367,563 in 2025-26.
- The higher rate does not apply to In Home Care sessions.
With three or more children, more than one child can receive the higher rate at the same time.
Standard rate child vs higher rate child
The higher CCS rate is designed for families with more than one young child in care.
Standard rate child
The eldest CCS eligible child aged 5 or under. This child receives your family's normal income-tested CCS rate.
Higher rate child
Each younger CCS eligible child aged 5 or under. These children may receive your standard CCS rate plus 30 percentage points, capped at 95%.
See second child higher CCS rate explained for the underlying mechanic.
Simple example: three children
Family has three children in approved care:
| Child | Age | CCS role |
|---|---|---|
| Child A | 5 | Standard rate child |
| Child B | 3 | Higher rate child |
| Child C | 1 | Higher rate child |
If the family's standard CCS rate is 80%:
| Child | Rate |
|---|---|
| Child A | 80% |
| Child B | 95% |
| Child C | 95% |
The higher rate is standard rate plus 30 percentage points. 80% + 30 percentage points = 110%, but the higher rate is capped at 95%.
What if your standard rate is lower?
If your standard rate is 55%, the higher rate would usually be 55% + 30 percentage points = 85%. So the younger children may receive 85%, not 95%. The 95% cap only matters once standard rate plus 30 points would exceed 95%.
Income limit for the higher rate
The higher CCS rate only applies if your combined family income is below the higher rate income limit. For 2025-26, that limit is $367,563.
If your income is above that amount, your children may still receive standard CCS if you are below the general CCS income limit, but the higher rate for second and younger children no longer applies. See CCS income thresholds and steps.
[[CHECKER:income]]
Do the children need to attend the same service?
No. Children do not need to attend the same childcare centre, attend on the same days, use the same care type, or be in care at the same time.
What matters is whether they are CCS eligible, aged 5 or under, and counted correctly by Services Australia.
| Child | Care type |
|---|---|
| Age 5 | Long day care |
| Age 3 | Family day care |
| Age 1 | Long day care |
The eldest may still be the standard rate child, while the two younger children may receive the higher rate.
What happens when the eldest turns 6?
When the eldest eligible child turns 6, they are no longer aged 5 or under. That can change the higher rate.
Example: two children
Before birthday:
| Child | Age | Rate role |
|---|---|---|
| Child A | 5 | Standard rate child |
| Child B | 3 | Higher rate child |
After Child A turns 6:
| Child | Age | Rate role |
|---|---|---|
| Child A | 6 | No longer counted for higher rate age test |
| Child B | 3 | Standard rate only |
Result: the higher rate usually ends.
Example: three children
Before birthday:
| Child | Age | Rate role |
|---|---|---|
| Child A | 5 | Standard rate child |
| Child B | 3 | Higher rate child |
| Child C | 1 | Higher rate child |
After Child A turns 6:
| Child | Age | Rate role |
|---|---|---|
| Child A | 6 | No longer counted for higher rate age test |
| Child B | 3 | Standard rate child |
| Child C | 1 | Higher rate child |
Result: the family may still receive the higher rate for the youngest child. See CCS age changes for the full set of milestones.
What if twins have the same birthday?
Where children have the same birthday, Services Australia determines which child is treated as the standard rate child. If twins attend the same service for the same hours and fees, the ordering may not matter much.
But if one twin attends more days, has higher fees or uses a different care type, the ordering can affect your family's total out-of-pocket cost. If the result looks wrong or unusual, contact Services Australia.
What if an older child stops attending care?
Be careful before assuming an older child still counts. Children generally need to remain CCS eligible and have used care within the required period.
If an older child stops using care and their eligibility ends, it can affect whether younger siblings qualify for the higher rate. This can matter where an older preschool child leaves care to start school, but younger siblings remain in long day care. See the 26-week rule.
Check your myGov CCS summary if:
- an older child leaves care
- a child starts school
- a child turns 6
- a child has not attended for a long period
- a provider ends an enrolment
Does In Home Care attract the higher rate?
No. The higher CCS rate does not apply to In Home Care sessions because IHC is subsidised per family, not per child.
However, a child aged 5 or under in IHC may still count when working out whether younger children in other care types are eligible for the higher rate.
| Child | Care type | Possible role |
|---|---|---|
| Age 5 | In Home Care | May count as older eligible child |
| Age 3 | Long day care | May receive higher rate |
| Age 1 | Family day care | May receive higher rate |
The IHC session itself does not receive the higher rate. See In Home Care and CCS.
Why this matters so much for three-child families
The difference between standard rate and higher rate can be large. For families with three children in care, a single change can affect hundreds of dollars a week.
Common triggers include:
- eldest child turns 6
- eldest child starts school
- older child stops using care
- family income rises above the higher rate income limit
- twins are ordered in a way that affects fees
- one child moves into OSHC
- one child uses In Home Care
This is exactly where annual modelling is more useful than a one-week estimate.
What to check in myGov
Check your CCS details after any major change. Look for:
- each child's CCS percentage
- which child is receiving the standard rate
- which children are receiving the higher rate
- whether your income estimate is current
- whether each child's enrolment is active
- whether a child has turned 6
- whether a child has started school
- whether the care type is correct
If the higher rate disappears unexpectedly, check the age and enrolment status of the eldest child first.
What this means for you
With three or more young children in care, the most expensive point in your year is rarely today. It is usually the month your eldest turns 6, the term one child starts school, or the day your income crosses the higher rate limit.
Run the current setup, then run each upcoming milestone, and you will spot the cliffs before they hit your weekly gap.
All figures are estimates based on current CCS settings and the inputs you provide. Final entitlement is determined by Services Australia.
Key takeaways
- Eldest CCS eligible child aged 5 or under is usually the standard rate child.
- Younger eligible children may get standard rate plus 30 percentage points, capped at 95%.
- The higher rate income limit for 2025-26 is $367,563 combined.
- IHC sessions do not get the higher rate, even when other siblings do.
Frequently Asked Questions
Can two of my children get the higher rate at the same time?
Yes. With three or more CCS eligible children aged 5 or under, more than one child can receive the higher rate at the same time. The eldest eligible child still receives the standard rate.
Is the higher rate always 95%?
No. The higher rate is your standard CCS rate plus 30 percentage points, capped at 95%. If your standard rate is 55%, the higher rate is 85%. Only standard rates above 65% reach the 95% cap.
What is the higher rate income cut-off for 2025-26?
The higher rate no longer applies once combined family income reaches $367,563. Your children may still receive standard CCS if you are below the general CCS income limit.
What happens to the higher rate if my eldest turns 6?
The eldest child stops counting toward the age test for the higher rate. With two children, the higher rate usually ends. With three or more, the next child becomes the standard rate child and the youngest may still receive the higher rate.
Does the higher rate apply if one child uses In Home Care?
The IHC session itself never receives the higher rate. A child in IHC who is aged 5 or under may still count as an older eligible child for the purpose of giving a younger sibling the higher rate in another care type.
Official sources
- Services Australia — Higher Child Care Subsidy for additional children
- Services Australia — Examples to help you understand your CCS
- Services Australia — Child Care Subsidy
- Department of Education — Child Care Subsidy hourly rate caps