Greater child care support for Australian families

The Morrison Government has today passed legislation that will provide more affordable child care for around 250,000 Australian families, and allow more parents to return to work or pick up more hours.

The Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 will increase the child care subsidy to a maximum of 95 per cent for families with more than one child aged under six in child care.

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

The measures will mean the equivalent of 40,000 people are able to work an extra day per week and will boost the economy by up to $1.5 billion per year.

A family on $110,000 with two children in child care four days a week will be $95 per week better off.

A single parent earning $80,000 with two kids in fulltime care would now pay just $5 per day for their second child.

Minister for Education and Youth Alan Tudge said the changes would see families with two children benefit by up to $185 a week.

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

“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.

“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 for Women’s Economic Security Jane Hume said the package would provide further economic opportunities for Australian parents, particularly women.

“We are supporting working parents, especially women who represent the majority of primary carers, by reducing child care costs and giving them more flexibility if they chose to return to work or want to work more hours,” Minister Hume said.

“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.”

The measures build on the Morrison Government’s $10 billion annual investment in child care, and the Child Care Package introduced in 2018 that is still keeping out-of-pocket costs low for Australian families.