DESE confirms details of new “Enhanced Child Care Subsidy” in update

The Department of Education, Skills and Employment have provided an update on the Federal Government’s proposed changes to the Child Care Subsidy system outlining key elements of the package and confirming timelines. 

The overview highlights the impact that the policy measure will have on lowering out of pocket expenses for more than 250,000 in 2022-23 and that families with children under 6 with multiple children aged under 6 in care will overall pay less in child care fees than under the current system. 

The “Enhanced Child Care Subsidy” will come into effect from July 2022 and consist of:

An increased subsidy for families with multiple children

From July 2022, a family’s CCS will increase if they:

• earn under $353,680 (2020–21), and
• have more than one child aged under 6 in care.

The subsidy will increase by 30% (capped at 95%) for their second child and subsequent children aged under 6 in care.

The increased subsidy will not apply to In Home Care sessions as IHC is subsidised on a family rather than per child basis.

The removal of the annual subsidy cap

From July 2022, the annual subsidy cap of $10,560 cap per child per financial year for families earning more than $189,390 (2020–21) will be removed. 

To visit the DESE website and review the updates please click here.