Child Care Subsidy cap officially removed effective 10 December

Child Care Subsidy cap officially removed effective 10 December

by Freya Lucas

December 14, 2021

The Federal Government has officially removed the $10,655 cap on the Child Care Subsidy, effective 10 December. 


Minister for Women’s Economic Security Jane Hume said women’s workforce participation is a social and economic priority and critical to Australia’s economic recovery, which is why the Government is prioritising investment in childcare.


This change, she added, will particularly support women, who represent the majority of primary carers, by reducing childcare costs and giving parents more flexibility if they choose to return to work or want to work more hours.


As well as removing the cap, around 250,000 Australian families with two or more children will also benefit from an increased Child Care Subsidy from 7 March 2022. 


Currently, families with multiple children in childcare can be financially worse off despite working additional days or hours. The Government’s additional investment in the Child Care Subsidy will help remove disincentives to work.


These combined policy changes mean that a family earning $110,000 a year with two kids in care, four days a week, will be better off by around $100 each week.


For background on the changes please see here.