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Increased childcare support brought forward

James Mitchell
14 October 2021 1 minute readShare
Increased childcare support brought forward

Around 250,000 Australian families will now benefit from increased Child Care Subsidy (CCS) from 7 March 2022, four months earlier than first expected.

The additional subsidies for families with two or more children in care were due to start on 11 July 2022, but the Morrison government has been able to work across departments and service providers to make necessary technical changes sooner.

Families with two or more children aged five years and under in care will have their CCS rate increased by 30 percentage points for their second child and any younger children, up to a maximum rate of 95%.

More than half of eligible families will receive the maximum 95% subsidy.

A family earning $110,000 a year with two kids in care, four days a week, will be better off by around $100 each week.

The $10,655 annual CCS cap will also be scrapped on 10 December 2021 and applied retrospectively for the whole 2021–22 financial year. Anyone who reaches the cap before this date will have any additional out-of-pocket costs for the 2021–22 financial year reimbursed.

Minister for Education and Youth Alan Tudge said the changes would ease pressure on working families and encourage more parents into work.

“These changes are good for families and great for the economy, and it’s significant that we are able to deliver them sooner,” Minister Tudge said.

“Removing the cap and increasing subsidies means more parents, particularly mothers, can return to work or take on more hours if they choose to.

“There are 280,000 more children in childcare than when we came to office and this additional support will take our total investment to $11 billion a year.

“Importantly, our support is targeted to those who need it most. We are reducing the out-of-pocket childcare costs which really add up when you have two, three or more children in care.”

Minister for Women’s Economic Security Jane Hume said the package would particularly support mothers looking to get back into the workforce or take on more hours.

“Treasury estimates the additional subsidy will mean the equivalent of 40,000 parents are able to work an extra day per week, boosting the economy by up to $1.5 billion per year,” Minister Hume said.

“The Morrison government is committed to increasing economic opportunities for Australian women and this additional childcare support will remove disincentives for primary carers, particularly mothers, to participate in the workforce.

“Under this government, women’s workforce participation has increased steadily and reached a record high of 61.9% in March 2021.”

The Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021, which enables the additional payments, was passed on 12 August 2021.

Increased childcare support brought forward
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James Mitchell

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