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How thousands of Aussie parents will be $2,200 a year better off thanks new child care subsidies

Thousands of Aussie parents will be $2,200 a year better off thanks a change to child care subsidies – so are you eligible?

  • Morrison government has brought forward an increase in child care subsidies
  • Education Minister Alan Tudge said 250,000 families will benefit from increases
  • But Labor said the new package was a ‘dud’ leaving 750,000 families behind 


The Morrison government has brought forward an increase in the child care subsidy to start in March next year, four months earlier than originally planned.

But Labor described the package as a dud, with many families left out in the cold and without getting anything additional.

Education Minister Alan Tudge said about 250,000 families will benefit from the increased subsidy and by more than $2,200 per year on average.

Scott Morrison’s (pictured) government has brought forward an increase in child care subsidies to May next year, four months earlier than was originally planned

WHO CAN GET THE SUBSIDY?

The new subsidies are for families with two or more children under five and in day care.  

‘So that is great for families,’ Mr Tudge told reporters in Canberra on Sunday.

‘It is also really going to help the economy as well, by reducing some of those workforce disincentives.’

He said the government has been able to work across departments and service providers to make necessary technical changes sooner than was planned.

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

The $10,655 annual subsidy cap will also be scrapped on December 10, 2021 and applied retrospectively for the whole 2021/22 financial year.

‘From now, families can have that confidence that this financial year they will not hit that cap and they are not ever going to hit that again,’ he said.

‘So they don’t have to ration any child care, which I know that some parents do.’

Education Minister Alan Tudge said about 250,000 families will benefit by more $2,200 per year on average (pictured, a child care centre in Helensburgh, Sydney)

Education Minister Alan Tudge said about 250,000 families will benefit by more $2,200 per year on average (pictured, a child care centre in Helensburgh, Sydney)

But Labor’s childhood education and development spokeswoman Amanda Rishworth said the rehashed announcement from the May budget is a dud and leaves some 750,000 families behind.

‘With the government’s child care package, only 25 per cent of families are going to get any relief,’ she told reporters in Adelaide.

‘Compare that to Labor’s cheaper child care plan, which delivers relief to 97 per cent of families.’

For parents with one child they will not get any extra relief from the subsidy at all, she said.

Labor's childhood education and development spokeswoman Amanda Rishworth claimed the new package was a 'dud' leaving 750,000 families behind (pictured, a Sydney child care centre)

Labor’s childhood education and development spokeswoman Amanda Rishworth claimed the new package was a ‘dud’ leaving 750,000 families behind (pictured, a Sydney child care centre)

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