Release type: Media Release


The next step towards greater child care support


The Hon Alan Tudge MP
Minister for Education and Youth

Today, I introduced legislation that will provide more support for Australian families using child care and remove barriers for parents who chose to return to work or work more hours.

The Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 will increase the child care subsidy for families with multiple children, aged five or under in child care and remove the $10,560 cap.

Around 250,000 Australian families will benefit, with more than half to receive the maximum 95 per cent subsidy for their second and subsequent children.

The measure 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.

Importantly, the additional subsidy is targeted to those who need it most – parents on lower incomes and those paying for multiple children in care.

This Budget measure will reduce out-of-pocket costs by up to $183 a week for families with a second or third child in care.

It builds on the Morrison Government’s record $10.3 billion investment in child care this year, and the Child Care Package we introduced in 2018 that is still keeping out-of-pocket costs low.

We will also launch an enhanced website next year, to make it easier for families to find detailed information about local services, including fees and vacancies.

We support choice for Australian families, and that’s why this additional investment is targeted, measured and fair for those who use the child care system and those who don’t.

This is in stark contrast to Labor’s child care policy that would see a family earning $500,000 per year receive $50,000 in taxpayer funded payments.

Labor should support this legislation. It will provide additional support for Australian families who need it most, when their costs are higher.

Labor must come clean about whether they support hard-working lower and middle income families or if they will only support their own policy to give tens of thousands of dollars to millionaires.