Family Assistance Legislation Amendment Bill passes enshrining CCS change

The Federal Government passed legislation late last week that will affect the affordability of early childhood education and care (ECEC) services for around 250,000 families. 

The Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 will increase the Child Care Subsidy (CCS) to a maximum of 95 per cent for families with more than one child aged under six attending an eligible ECEC service.

The $10,655 cap on the Child Care Subsidy has also been removed, a measure the Government says will benefit around 18,000 families.

Combined, the measures are anticipated to boost the economy by up to $1.5 billion annually, through allowing the equivalent of 40,000 people to work an extra day per week.

A family on a combined income of $110,000 with two children in child care four days a week will be $95 per week better off under the new legislation. For a single parent who is earning $80,000 with two children in full time care, the changes mean the cost of ECEC provision falls to $5 per day for the second child. 

“This legislation is good for families and good for the economy,” Minister for Education and Youth, Alan Tudge said.

“It is targeted, it is measured, and it is geared towards those families who really need it – those who are managing the increased costs of having two or more children in child care.”

Minister for Women’s Economic Security Jane Hume said the package would provide further economic opportunities for Australian parents, particularly women.

“We are supporting working parents, especially women who represent the majority of primary carers, by reducing child care costs and giving them more flexibility if they choose to return to work or want to work more hours,” Minister Hume said.

To review the legislation, please see here.