Yahoo Finance Childcare subsidy could see Aussie parents save thousands
The Albanese government is proposing a major childcare subsidy to benefit all Aussie parents.
The federal government is proposing a 90 per cent childcare subsidy, which could save Aussie parents thousands of dollars and get women back into the workforce faster.
The proposal would see parents receive 90 per cent of their childcare costs back. However, a review of the entire industry will need to take place first.
Prime Minister Anthony Albanese has announced a Productivity Commission review, which will begin on March 1 and will provide a final report to government by June 30, 2024.
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The federal government has appointed academic Deborah Brennan to lead the inquiry into the early childhood and care system, Education Minister Jason Clare said.
"A great early childhood education and care system pays a triple dividend: it sets children up for a great start in life, helps working families to get ahead, and builds our economic prosperity by supporting workforce participation," he said.
Next step in achieving universal child care
Cheaper child care was a central part of the Albanese government’s first federal budget, promising $4.7 billion of investment over four years from 2022/23.
From July 2023, childcare subsidy rates will increase up to 90 per cent for eligible families earning less than $530,000. Currently, the subsidy stops once a family reaches the $356,756 income mark.
Families will continue to receive existing higher subsidy rates of up to 95 per cent for additional children in care aged five and under.
"Cheaper child care is a game-changing investment in families, our workforce, and our economy,” Federal Treasurer Jim Chalmers said when presenting the October 2022 budget.
"It will increase the paid hours worked by women with young children by up to 1.4 million hours a week in the first year alone. That’s the equivalent of 37,000 extra full-time workers."
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