100 days until ‘cheaper childcare’ becomes a reality: Minister welcomes milestone

The Federal Government will deliver on a core election promise in 100 days, making early childhood education and care (ECEC) cheaper for around 1.2 million Australian families. 

For the average family on an income of about $120,000 with a child in care three days a week, the changes will cut costs by about $1,700 a year. The Child Care Subsidy rates will lift to 90 per cent for families on a combined income of $80,000 or less.

The higher subsidy of up to 95 per cent for families with second and subsequent children aged five years or under in care will be retained.

The number of hours of subsidised care First Nations children are eligible for will also rise to a minimum of 36 hours a fortnight from July, benefiting around 6,600 families and encouraging more to use care.

“Anyone with children in early childhood education and care knows how expensive it is. This will make a real difference,” said Federal Minister for Education Jason Clare. 

Minister for Early Childhood Education Dr Anne Aly said the changes represent “real relief to the household budgets of families struggling with the rising cost of living,” while also improving the economic security of women.

“The cost of early childhood education is one of the first things families have to factor in when they sit down at the kitchen bench to do the household budget – we’re helping to ease that pressure,” she explained.

“More affordable early childhood education and care means more Australian children can access the transformative health and education benefits of foundation years learning no matter their background.”

For a comprehensive unpacking of the changes, please see here.