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Australian families to receive more child care support

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The Australian Government has recently passed legislation to provide more affordable child care for around 250,000 Australian families. This legislation will allow more parents to return to work or put in more hours.

The Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 aims to raise the child care subsidy of up to 95 per cent for families with more than one child below six years old in child care.

The cap of $10,655 on the Child Care Subsidy has also been removed, benefitting around 18,000 families.

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The measures estimate the equivalent of 40,000 people can work an additional day per week and boost the economy by up to $1.5 billion per year.

For instance, a family on a $110,000 annual income with two children enrolled in child care for four days a week will be $95 per week better off.

A single parent earning a yearly income of $80,000 with two kids in full-time care would now only pay $5 per day for their second child.

“This legislation is good for families and good for the economy,” Minister for Education and Youth Alan Tudge said.

Minister Tudge said the changes would benefit families with two children by up to $185 a week.

“It is targeted, it is measured, and it is geared towards those families who really need it – those who are managing the increased costs of having two or more children in child care,” Tudge said.

“The Morrison Government supports choice for Australian families, and that’s why our policies are designed to be fair for those who use the child care system and taxpayers who don’t,” Minister Tudge added.

Minister for Women’s Economic Security Jane Hume said the new package would contribute to further economic opportunities for Australian parents, especially women. 

She said that their support for working parents, particularly women who represent most primary carers, will help reduce child care costs and give them more flexibility if they return to work or work more hours.

“Under this Government, women’s workforce participation is at a near-record high of 61.6 per cent, and this policy will help more Australian women to increase their incomes and secure their economic futures,” Hume added.

The measures become part of the Morrison Government’s $10 billion annual investment in child care.

Feature photo by Tanaphong Toochinda on Unsplash

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