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Pat Conaghan MP

Greater child care support brought forward

Families across Cowper will benefit from greater child care support sooner, with increased Child Care Subsidy (CCS) for multiple children brought forward from 7 March 2022, four months earlier than first expected.

The increased subsidies were due to come into effect on 11 July 2022, but the Government has been able to work with Commonwealth agencies and service providers to make necessary technical changes sooner.

From 7 March 2022, families with two or more children aged five years and under in care will have their CCS rate increased by 30 percentage points for their second child and younger children, up to a maximum rate of 95 per cent.

A family earning $110,000 a year with two kids in care, four days a week will be better off by $100 a week.

The $10,655 annual cap will also be scrapped on 10 December 2021 and applied retrospectively for the whole 2021-22 financial year, meaning families who hit the cap before the date will receive a refund on any excess fees paid.

There are around 1440 families in Cowper that have two or more children in care and could benefit from the increased subsidy. More than half of eligible Australian families will receive the maximum 95 per cent subsidy.

Minister for Education and Youth Alan Tudge said the changes would ease pressure on working families in Cowper and encourage more parents into work.

“These changes are good for families and great for the economy, and it’s significant that we are able to deliver them sooner,” Minister

“Removing the cap and increasing subsidies will allow more parents, particularly mothers, to return to work or take on more hours if they choose to.

Pat Conaghan Federal Member for Cowper said the support would be targeted at those that need it most.

“We know child care costs can really add up when you have two, three or more children in care and this package will help those families by significantly reducing out-of-pocket costs for the second child and younger children,” Mr Conaghan said.

“This will make a real difference in the lives of families right across the Mid North Coast.

“The changes will also see this government’s total investment in child care grow to $11 billion a year they build on the Child Care Package we introduced in 2018 that is still keeping out-of-pocket costs low.”

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