CCS for two children — the higher sibling rate explained
Families with two or more children aged 5 or under in approved child care, and combined income below $367,563, are entitled to a higher CCS rate for the second and any younger children. This can significantly reduce costs for families with two young children in care at the same time.
What is the higher sibling rate?
When families have more than one child aged 5 or under in approved care, the Australian Government pays a higher subsidy rate for the second and any younger children. This is sometimes called the "higher child rate" or "sibling rate."
The eldest eligible child always receives the standard CCS rate based on family income. All younger siblings who are also aged 5 or under and in approved care receive the higher rate — calculated using a separate income schedule with better rates at each income level.
The higher rate was introduced in 2022 and remains in place for 2025–26. It is separate from the standard CCS income taper and has its own income thresholds.
Who qualifies for the higher rate?
All of the following must apply:
- You have more than one child aged 5 or under in approved care at the same time
- All children must be enrolled at an approved child care service
- Your combined family income is below $367,563
- You meet the standard CCS eligibility criteria (child under 13, not in secondary school, immunisation requirements met)
Higher child rate income schedule (2025–26)
| Family income (ATI) | Higher child CCS rate | Standard rate (eldest) |
|---|---|---|
| $0 – $143,273 | 95% | 90% |
| $143,274 – $188,272 | Tapers from 95% (−1% per $3,000) | Tapers from 90% (−1% per $5,000) |
| $188,273 – $267,562 | 80% (flat) | Continues tapering |
| $267,563 – $357,562 | Tapers from 80% (−1% per $3,000) | Continues tapering |
| $357,563 – $367,562 | 50% (flat) | Continues tapering |
| $367,563+ | Standard rate applies | Continues tapering to 0% |
2025–26 rates, effective 7 July 2025. Indexed by CPI each year. Above $367,563, all children receive the standard rate — the higher rate does not apply.
Standard rate vs higher rate — at a glance
The higher rate tapers more quickly ($3,000 bands vs $5,000 for standard) but starts higher and has protected flat-rate bands at 80% and 50% that the standard rate does not. For most families with income below $200,000, the second child's rate will be meaningfully higher than the eldest child's rate.
What about three or more children under 5?
The higher rate applies to the second and all younger children — not just the second child. For a family with three children all aged 5 or under in care simultaneously:
- Child 1 (eldest): Standard CCS rate
- Child 2: Higher CCS rate
- Child 3: Higher CCS rate
Many older calculators only applied the higher rate to one additional child. The Child Care Gap calculator correctly applies the higher rate to all eligible younger children.
Worked example — two children in long day care
Child 1 (eldest — standard rate)
Child 2 (younger — higher sibling rate)
Try this scenario in the calculator by enabling "Add second child" and entering both children's details.
Frequently asked questions
Do I need to apply separately for the higher sibling rate?
No. Services Australia applies the higher rate automatically when both children are enrolled in approved care and your family meets the eligibility criteria. You do not need to make a separate application.
My older child just started school and attends OSHC — does the higher rate still apply?
Yes, provided your older child is still enrolled in an approved care service (OSHC counts). The higher rate requires two children aged 5 or under in approved care — if your older child is now attending OSHC as a school-age child, they are still in approved care. However, once a child is no longer enrolled in approved care at all, only the younger child remains and reverts to the standard rate.
Which child is the "standard rate child" and which is the "higher rate child"?
The eldest eligible child aged 5 or under in care is the standard rate child. The second and all younger children aged 5 or under in care are the higher rate children. Services Australia determines this based on dates of birth.
Our income is $370,000 — do we get the higher sibling rate?
No. The higher sibling rate only applies to families with combined income below $367,563. Above this threshold, all children receive the standard CCS rate, which at $370,000 is approximately 56% (based on the standard taper). The standard rate continues to taper to 0% at $535,279.