Morrison Government cuts out-of-pocket costs for Australian families with multiple kids in child care

JMR with Acting Minister for Education and Youth, Stuart Robert Minister for Women’s Economic Security, Jane Hume

Senator for Victoria Sarah Henderson today welcomed a significant increase in the rate of Child Care Subsidy (CCS) for local families with multiple children aged five or under in child care.

Acting Minister for Education and Youth, Stuart Robert, said the Australian Government had lifted the rate of CCS by 30 per cent for the second child aged five or under and any younger children in child care, up to a maximum rate of 95 per cent.

The higher subsidy will boost support for working families and follows the removal of the annual CCS cap of $10,655 for families earning over $190,015 (in 2021-22 terms) from 10 December 2021 – and beyond.

‘These measures will ease the cost of child care for about 250,000 families throughout Australia who on average will be around $2,260 a year better off,’ Minister Robert said.

‘For a family who are charged a typical fee and earns $120,000 a year with two children in child care for five days per week, the saving will be $144 per week compared to current settings.’

The Morrison Government fast-tracked the increased subsidy, bringing it forward from 1 July 2022 to today, Monday 7 March.

‘Families do not have to do anything to receive the increased subsidy – it will flow to families automatically, with no need to apply to Services Australia,’ Minister Robert said.

‘But families keen to know their benefits can go to the new StartingBlocks.gov.au website and use the simple family estimator.’

Senator for Victoria Sarah Henderson said the Australian Government measures would make a significant contribution to easing the pressure on the cost of living for many families with young children.

‘For local families with more than one child aged five or under in child care, today’s increase in the CCS, means more money in your pocket each week,’ Senator Sarah Henderson said.

‘This is good news for eligible families who will benefit from reduced out-of-pocket child care costs, which also provides an incentive to consider either returning to work or working additional hours.

‘Local families know that the cost of child care – particularly for families with more than one child in care – can be a barrier to pursuing employment or working additional hours.

‘This is especially so for local mums who may be able to use this to get back into the workforce or to increase their hours in their current job.’

Minister for Women’s Economic Security, Jane Hume, said about one million Australian families are being supported by record levels of child care funding.

‘Childcare changes lives – it removes barriers and provides opportunities to those who need it most. The Morrison Government’s increased investment in childcare, around $10.3 billion this financial year alone, means that around one million families will benefit.

‘It’s all about empowerment, not dependence. Unlike Labor’s free childcare for millionaires, the Morrison Government is targeting our childcare spend to make sure carers, overwhelmingly women, get the choices and chances they expect and deserve.’

Sunday, 6 March 2022

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Table: What increased CCS means for families with two children in child care five days a week

[ENDS]

Media contact:             Minister Robert’s Office (02) 6277 7610

                                    Minister Hume’s Office (02) 6277 7320

                                Senator Sarah Henderson’s Office: 0490 441 554