New analysis has revealed the areas around the country where Australian families are set to be the biggest winners from the Turnbull Government’s child care overhaul.
Minister for Education and Training Simon Birmingham said the child care overhaul will provide the greatest hours of support to the families who work the longest hours, and the greatest subsidy and financial support to the families who earn the least.
“This analysis highlights that our child care changes are focused on helping the families that need it most,” Minister Birmingham said.
“Across the mortgage belts of Australia hard working families will be able to breathe a little easier knowing that more support for child care fees is just around the corner.
“Many of the families I hear from who are struggling the most with child care costs, live right in the areas this analysis shows are set to see the biggest benefits.
“Almost one million families will benefit from our additional $2.5 billion investment and increased subsidy, our new hourly rate cap to put downward pressure on fee increases and the end of the $7,613 annual rebate cap.”
Minister Birmingham said the analysis from the Federal Department of Education and Training had not factored in the impact of any new or additional hours of work, study, training or volunteering activity that parents might choose to undertake under the reformed child care system, which would create even more winners from the reforms.
“Child care costs shouldn’t dictate when or how much parents work. Our child care reforms will empower more parents to choose the hours or days of work that best suit the needs of their families.
“It is estimated that our reforms, which give preference to parents who are working, studying or volunteering, will see more than 230,000 families increase their involvement in the workforce,” Minister Birmingham said.
“Part of our reforms include a $1.2 billion Child Care Safety Net to support vulnerable children and families who need extra support.”
Minister Birmingham said the Turnbull Government was providing more information to help families prepare for the start of the new child care system on 2 July 2018.
“With 1.15 million Australian families set to access child care next year it’s important families have the opportunity to plan for the changes,” Minister Birmingham said.
“I urge families to visit our child care estimator, plug in their details and see exactly how they’re set to benefit.”
The Turnbull Government’s child care package includes:
• Increasing Australia’s investment in early childhood education and care by $2.5 billion so that almost one million Australian families benefit
• Introducing a better targeted activity test to ensure taxpayer subsidised child care places are targeted to those who depend on it in order to work, or work more hours.
• Delivering the highest rate of subsidy to those on the lowest income levels and more hours of subsidy to those who work the most. We’re increasing the base subsidy from around 72 per cent to 85 per cent for the more than 370,000 families earning around $65,000 or less a year.
• Low and middle income families, earning up to around $185,000, will no longer be limited by an annual $7,613 cap on the amount of subsidised child care they can access – that’s more than 85 per cent of families using child care and means families won’t run out of subsidy mid-year as happens now. Families earning more than around $185,000 will also benefit from an increased cap of $10,000.
• A $1.2 billion Child Care Safety Net will support vulnerable children and families who need extra support
More information on the Turnbull Government’s new child care reforms can be found at: http://www.education.gov.au/childcare
Number of families projected to be better off under the Government’s child care reforms (top by electorate in each state and territory)
|New South Wales|
|Australian Capital Territory|