Goodstart joins broader sector and applauds Governments proposed CCS changes

Goodstart Early Learning, Australia’s largest early childhood education and care provider, has joined the broader sector in welcoming the Australian Government’s decision to increase child care subsidy (CCS) rates for families with two or more children and to remove the annual cap on subsidies completely. 

The move, which was announced over the weekend and will form part of the 2021/22 Budget to be handed down on the 11 May 2021, is expected to improve child care affordability for over 250,000 families and has been largely welcomed by the ECEC sector. 

Julia Davison, CEO of Goodstart Early Learning described the decision as great news for families noting that “This will make a real difference for 250,000 families with two or more children under five where there is no financial incentive to return to work because of high out of pocket costs.”

“The removal of the annual cap will also reduce stress as many families run out of subsidy towards the end of the financial year and then need to scramble to make ends meet.”

“We are pleased that the Government has recognised the role that effective marginal tax rates play in creating barriers to working more, and look forward to further discussion with the government about what else can be done to support more families wanting to work more days.”

The changes are anticipated to come into effect on 1 July 2022.