- The Morrison Government has unveiled a new $1.7 billion childcare package as part of the 2021-22 federal budget
- The package will provide extra support to low- and middle-income families who have more than one child enrolled in childcare
- The new subsidies will come into effect from July 2022 and apply to around 250,000 Australian families who have two kids aged under 5
- Extra financial support is also been given to middle- to high-income working families by removing the existing $10,560 cap on childcare subsidies
- Treasurer Josh Frydenberg said the government’s new package aimed to give more parents the opportunity to return to work
- Labor has criticised the move though, arguing it should be bought forward to this year and apply to more families
The Morrison Government has unveiled a new $1.7 billion childcare package as part of its wider 2021-22 federal budget.
The package will provide extra financial support to families who are paying to enrol one or more children, aged under 5, in childcare.
Around 250,000 families are set to benefit from the subsidy increase, when it comes into effect on July 1, 2022.
The Treasurer said half of those families will be low- and middle-income earners, with a combined household income under $130,000.
Josh Frydenberg argues by lowering the cost of childcare for parents with multiple kids, the measures will boost Australia’s overall workforce levels.
“These changes strengthen our economy and at the same time provide greater choice to parents who want to work an extra day or two a week,” the Treasurer said.
“This is a targeted and proportionate investment that simultaneously makes child care more affordable, increases workforce participation, and boosts the Australian economy by up to $1.5 billion per year,” he added.
The Federal Government is also offering extra financial support to middle- to high-income working families, by removing the existing $10,560 cap on childcare subsidies.
The move is set to benefit around 18,000 families that have a combined income of over $189,000.
“Our child care system provides the most support to those who need it most,” Education Minister Alan Tudge said.
“These measures will help remove the barriers for parents, particularly mothers, to return to the workforce or to increase their hours, as their family grows,” he added.
However, the Federal Opposition has criticised the childcare package, arguing it needs to be bought forward to this year and apply to more families.
“Families right across the country are struggling with the cost of childcare,” Labor’s Early Education spokeswoman Amanda Rishworth told ABC.
“So now is not the time to pick a few families to get the benefit, now is the time to reform the system so the majority of families get the benefit,” she argued.