ECEC sector responds to CCS shift – “families are the big winners”

The early childhood education and care (ECEC) sector has responded to the recent announcement by Federal Minister for Education and Youth Alan Tudge, which confirmed that changes to the Child Care Subsidy (CCS), originally scheduled for July 2022, will now come into effect earlier than previously scheduled. 

 

Families with multiple children aged five years and under in care will have their CCS rate increased by 30 per cent for their second child and any younger children, to a maximum rate of 95 per cent, something that Australian Childcare Alliance (ACA) President Paul Mondo said will greatly assist those families who are doing it particularly tough, as a result of the extensive COVID-19 lockdowns in Victoria and New South Wales.

 

“We have long advocated for this boost in financial support to our families and we are pleased that the government is heeding our call to bring forward these important funding reforms,” he added. 

 

The announcement was also welcomed by Elizabeth Death, CEO of the Early Learning and Care Council of Australia (ELACCA), who said “we welcomed these measures when they were announced in the May Budget, and we’re even more pleased now that they will take effect months sooner than planned.”

 

“‘The cost of high-quality early learning and care is shared between families and the Government. Policies that reduce the cost borne by families are a great investment in the future. They make it easier for children to access services that support their wellbeing, learning and build their all-important social and emotional skills,” she added. 

Families will, on average, be $2,200 a year better off as a result of the changes, with the annual CCS cap also being removed on 10 December 2021, and applied retrospectively for the

whole 2021-22 financial year.

 

“As the bedrock of Australia’s economy, our sector works hard to protect the children in our care, the educators who look after them and to support our families during this challenging COVID-19 pandemic,” Mr Mondo said.

 

“We would like to wholeheartedly thank the Minister for Education, the Treasurer and the Prime Minister for recognising the importance of ensuring that all Australian families can continue to have affordable access to high quality early learning services.” 

 

For further information about the changes, please see here.