Multiple benefits to bringing CCS changes forward highlighted in new report

Bringing forward the proposed changes to the Child Care Subsidy (CCS) would help address critical workforce shortages and save low-income families an additional $295, according to new analysis by Per Capita.

From 1 July 2023, proposed changes to CCS income eligibility levels and subsidy percentages will come into effect, with families earning between $354,305 and $530,000 per annum benefitting from the former, and families at the lower end of the socio-economic spectrum benefitting from the latter. 

These changes will directly impact long day care, family day care and outside school hours care settings with demand increases expected in communities with concentrations of qualifying  families. 

The predicted impact of hastening the changes is outlined in the Bringing Forward Labor’s Changes to Early Childhood Education and Care Subsidies to Hasten the Benefits report, which was commissioned by Minderoo Foundation’s Thrive by Five initiative.

Key findings from the report include: 

• Low-income families will be better off by a minimum of $11.30 per week.
• There is unlikely to be any impact to CPI as the reduction in childcare costs will largely offset any changes in CPI deriving from changes to spending patterns.
• Only a 9.24 per cent increase in the budget for childcare is needed to bring forward the change.
• The equivalent annual benefit to low income households is approximately $590.
• The subsidisation will improve living standards and contribute to the alleviation of cost of living pressures.

It also shows that bringing the changes forward would enable workers currently in the workforce to increase their hours, create new opportunities for workers currently locked out of the workforce to re-enter the job market and bring cost of living relief for many families.

“Australia’s early learning and childcare system is in crisis,” said Thrive by Five Director Jay Weatherill.

“There are 102,000 parents, mostly women, locked out of the workforce because of the high out of pocket costs of childcare and the early years workforce is in crisis, with a shortage of 39,000 educators,” he added, calling for the upcoming Jobs and Skills Summit to advocate for bringing forward the CCS changes. 

A copy of the report was passed on to The Sector for review. It is not yet available online. Please visit Per Capita’s website for more information.