Government introduces new legislation to amend CCS and remove $10,560 cap

Legislation was introduced to Parliament yesterday to increase the child care subsidy (CCS) for families with multiple children aged five or under in child care and remove the $10,560 cap.

The Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 is intended to provide more support for Australian families using child care and remove barriers for parents who chose to return to work or work more hours.

It is anticipated that 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, an announcement from Federal Minister for Education and Youth, Alan Tudge noted. 

“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,” he explained. 

Mr Tudge also announced that the Government will 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,” he emphasised. 

To review the legislation in full, please see here.