What is the higher CCS rate for a second child?

From July 2023, a higher CCS rate applies to a second child (and any younger children) who attend approved childcare at the same time as an older child. The higher rate starts at up to 95% for lower incomes and tapers with income. Both children must be in care simultaneously for the higher rate to apply to the younger child.

When does the second child higher CCS rate apply?

The higher rate applies when you have two or more children under 6 in simultaneous approved childcare. The youngest child receives the higher rate. It also applies if an older child is in school-age care and a younger sibling is in long day care at the same time.

What income limits apply to the second child higher CCS rate?

In 2025-26, the second child higher rate schedule applies for incomes up to approximately $367,563. Above this income, the higher rate stops. Within the schedule, the rate tapers at various thresholds. At higher incomes (above $267,563) the second child's rate matches the standard schedule.

What happens to the higher rate when the older child starts school?

If the older child is in before/after school care, the higher rate for the younger child may still apply if they are in care on the same days. However, if the older child leaves care entirely (for example, moves to school with no OSHC), the younger child reverts to the standard CCS rate.

Higher CCS Rate for Second Child: 2026 Guide

5 min read Updated 11 February 2026

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If you have more than one young child, you may be eligible for a higher Child Care Subsidy (CCS) rate for your second child and any younger children.

This guide explains how the second child higher rate works, when it applies, and a common situation that often causes confusion for families.

What is the second child higher CCS rate?

The higher CCS rate can apply if you have more than one CCS eligible child aged 5 or younger.

The higher rate is worked out using a separate CCS income test for second and younger children. The younger child(ren) may qualify for a higher subsidy rate (up to 95% depending on your Adjusted Taxable Income).

If a child does not attend care (and therefore does not use CCS) at least once in 26 consecutive weeks, they can stop being CCS eligible. If they start care again later, you may need to make a new CCS claim for that child.

Note: if your combined family income is above the upper threshold for the higher rate (indexed each year), the higher rate no longer applies and all children receive the standard CCS rate.

This higher rate applies only to the second and younger children, not the eldest child.

Who counts as a "second child"?

For CCS purposes, children are ordered by age, not by which child attends care.

The oldest child aged 5 or younger is treated as the first child. The next youngest child aged 5 or younger is treated as the second child and may receive the higher rate.

Do both children need to attend childcare?

No. Attendance by the older child is not required for the higher rate to apply.

For the second child higher rate to be considered, Services Australia looks at whether:

both children are aged 5 or younger, and
both children have a current approved CCS assessment.

The higher rate is based on age and CCS approval, not on whether both children are attending care.

What if my older child isn't attending childcare?

If your older child:

is aged 5 or younger, and
still has a current approved CCS assessment,

they may still be counted when determining whether your younger child qualifies for the higher CCS rate, even if they do not attend childcare.

This is a common area of confusion. Some families cancel CCS for a child who is not attending care, assuming it is required. In some cases, cancelling the older child's CCS assessment can reduce the CCS rate for the younger child, increasing weekly out-of-pocket costs.

If a child does not attend care at least once in 26 consecutive weeks, they can stop being CCS eligible. If this occurs and the older child is no longer considered CCS-eligible, the higher CCS rate for the younger child may no longer apply. If the child starts care again later, you may need to make a new CCS claim for that child.

Child care providers may also end an enrolment after extended non-attendance, which can affect whether sessions are reported. This is separate from Services Australia's CCS eligibility rules.

If your older child may return to care later, it is often safer to leave their CCS assessment active unless there is a clear reason to cancel it.

When does the higher rate stop applying?

The higher CCS rate for the younger child generally stops when:

your combined family income is above the upper threshold for the higher rate (indexed each year), or
the older child turns 6 (is no longer aged 5 or younger), or
the older child's CCS assessment is cancelled or no longer current, or
the older child is no longer considered a dependent child for CCS purposes.

Simply not attending care does not end the higher rate on its own.

Model this with CCSChecker Premium

Changes in your children's ages, care arrangements, or CCS status can affect when the second child higher rate starts or stops.

CCSChecker Premium lets you:

model how the 2-under-6 rule applies as your children age,
test different scenarios before and after a child turns 6,
compare out-of-pocket costs when CCS eligibility changes.

How CCSChecker handles this

CCSChecker models the second child higher rate by applying the separate "second and younger children" CCS income test to eligible younger children, based on:

each child's age, and
whether they have a current approved CCS assessment.

Attendance for the older child is not required for the higher rate to be shown, as long as both children are aged 5 or younger and both have a current approved CCS assessment. (If an assessment or enrolment ends, the higher rate may no longer apply.)

CCS outcomes depend on individual circumstances, and Services Australia makes final eligibility decisions.

Official sources

Related guides

This is general guidance only. Report all changes (income, relationship, care arrangements) promptly via myGov. For personalised advice, contact Services Australia at 136 150 or visit servicesaustralia.gov.au/child-care-subsidy.