Families in rural and remote areas, shift workers or those with complex needs will find it easier to get child care support in their homes thanks to reforms from the Morrison Government.
The Morrison Government is providing $44.5 million to increase the Child Care Subsidy for families using In Home Care as well as increasing the number of places by 200 to 3,200.
The family hourly rate cap will increase from $25.48 to $32.00 per hour and the Additional Child Care Subsidy rate will increase from $30.58 to $38.40 per hour, starting 1 January 2019.
The increased rate cap will help eligible families access affordable In Home Care as well as support providers.
Minister for Education Dan Tehan said the Government had listened to feedback from families and providers.
"Our Government recognises the importance of In Home Care to the families who can’t access other types of child care because of their circumstances," Mr Tehan said.
"We understand that families in regional and remote areas, shift workers or those with a child who has complex needs should also be supported.
"Only the Morrison Government can afford to increase the Child Care Subsidy for these families because we are keeping the economy strong.
"The new rate cap balances the needs of families to access affordable education and care with the interests of providers.
"We will continue to monitor the impact of the Child Care Subsidy rate caps on families and services as part of the new child care package evaluation."
New South Wales Family Day Care Association chief executive officer Anita Jovanovski said she was thrilled with the announcement.
"In Home Care is a unique type of education and care for families who cannot access standard childcare," Ms Jovanovski said. The Hon Dan Tehan MP, Minister for Education, Hamilton, Victoria
"An IHC educator may be looking after four children in the one home, a subsidy of $32 per hour will enable the services that engage the educator to cover their costs, will enable the educator to be more fairly recompensed but above all will make IHC more affordable for the families who need it.
"Families who use IHC are often desperately in need of the education and care IHC supplies. They may have challenging or complex needs such as disability or serious illness of a family member, be geographically isolated or work non-standard hours. Providing an increase in the rate means these families out of pocket fees will now be affordable."