cost of kids in ,Do you have two or more kids in child care? The hip-pocket assault of double fees is set to be slashed with this $1.7 billion dollar government subsidy proposal! HAPPY DAYS!
Caps on child care subsidies for higher-income families are to be removed and costs slashed for low and middle-income earners with two or more children in child care under a new billion-dollar budget proposal from the Federal Government.
New child care subsidy brings relief and choice to families
The Federal Government is pumping $1.7 billion into child care to help keep parents working, and give parents the choice to work more, should they want to.
Over the weekend, Treasurer Josh Frydenberg announced a planned $1.7 billion injection into the child care system. This will give a proposed 250,000 Australian families a financial boost, in turn making the economy stronger.
The package is set to be included in the May 11 budget, targeting low and middle-income families, earning $130,000 or less a year.
If you have two or more kids in child care, you KNOW how much that hits the hip pocket. With this proposed child care subsidy, relief is on its way.
It’s said that this child care subsidy will increase to a maximum of 95% (up from 85%) for those with two or more children aged five and under in care.
What does this mean for you?
In a nutshell, early years child care is going to be a whole lot more affordable for many families. It means parents of young children who want to work more, can potentially increase their working hours without crippling child care fees holding them back. The subsidy aims to stop the cost of care from doubling or tripling for families.
Josh Frydenberg says Treasury estimates the subsidy will help boost economic growth by around $1.5 billion a year and provide up to 300,000 extra hours to be worked.
“That is the equivalent to 40,000 people working an extra day a week.”
If you’re a low to medium income earning family with two or more kids in care, it’s all good news for you – and if you’re a high income earning family, there’s something for you too.
Wait. So I’ll be SAVING money?
Potentially, yes. The child care subsidies increase for families with more than one child aged five and under in care, with the $10,560 cap removed too!
The savings table for families with two children in care looks like this:
(income – Government subsidy to increased subsidy – savings per week)
- $40,000 Annual income – child care subsidy of 85% boosts to 95% – SAVE $41.60
- $80,000 Annual income – child care subsidy of 82% boosts to 95% – SAVE $53.79
- $110,000 Annual income – child care subsidy of 72% boosts to 95% – SAVE $95.39
- $140,000 Annual income – child care subsidy of 62% boosts to 92% – SAVE $124.80
- $180,000 Annual income – child care subsidy of 50% boosts to 80% – SAVE $124.80
Source: 7News/Treasurers office
When will the changes take place?
Unfortunately, not straight away. Changes take time and so it’s important to note that the proposed subsidy won’t be in action until July 2022, nor will it be for out of school hours child care (OSHC).
So now with the cost of kids in child care looking more affordable than ever, the question is – will you look to increase your work hours next year or not?