Cheaper Child Care Plan will provide cost of living relief to families - Education Matters Magazine
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Cheaper Child Care Plan will provide cost of living relief to families

Cheaper Child Care Plan

From July 1, the Albanese Government is taking action to deliver real cost-of-living relief by introducing the Cheaper Child Care Plan which will reduce the cost of early childhood education and care. This news follows new data that reveals childcare costs rose by 49 percent under the former government.

“The cost of early childhood education is one of the first things families have to factor in when they sit down at the kitchen bench to do the household budget – we’re helping to ease that pressure,” said Minister for Early Childhood Education Dr Anne Aly.

“More affordable early childhood education and care means more Australian children can access the transformative health and education benefits of foundation years learning no matter their background.”

“We’re delivering real relief to the household budgets of families struggling with the rising cost of living, while also improving the economic security of women.”

The changes promise to make childcare cheaper for more than 1.2 million Australians according to Minister for Education Mr Jason Clare.

“Anyone with children in early childhood education and care knows how expensive it is. This will make a real difference. Access to quality, affordable early education and care is great for children, it’s great for parents, and it is great for our economy,” he said.

In a press conference delivery in the Brisbane suburb of Lilley on April 13, Mr Clare addressed the community on the changes and benefits that Australian families can expect from the Labor Cheaper Childcare Plan.

“If you’re an average family on a combined household income of 120 grand, these changes will mean that in the next financial year you’ll save around 1,700 bucks if you’ve got one child in care three days a week,” said Mr Clare.

“That’s real money and will make a real difference for families where money is tight, and where they’re doing it tough.”

The Minister furthered highlighted that the changes will be good for children, good for parents, and good for the country.

“It’s good for children because more time in care means they’re going to be better prepared for school. It’s good for parents because it’s going to cut the cost of early education and care, and give them a choice, if they want to, to work more hours or work more days. And it’s good for the country because businesses across the country need skilled workers right now,” he said, adding that, “parents being able to return to work if they want to will help Australian businesses.”

“This was one of the biggest and most important commitments we made this time last year in the peak of the election campaign. Australian people voted for it, we’ve passed the legislation to implement it, and we’re now only 79 days away from delivering it.”

In summary: Labor Cheaper Child Care Plan

  • For the average family with a total household income of $120,000 and a child that is in care three days a week, the changes will cut costs by about $1,700 annually.
  • The Child Care Subsidy rates will lift to 90 percent for families on a combined income of $80,000 or less.
  • The higher subsidy of up to 95 percent for families with second and subsequent children aged five or under in care will be retained.
  • The number of hours of subsidised care First Nations children are eligible for will also rise to a minimum of 36 hours a fortnight from July, benefiting around 6,600 families and encouraging more to use care.

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