Childcare subsidy change takes effect

A NEW Federal Government childcare subsidy came into effect last week and could benefit more than four thousand families with young children in Ballarat.

Families earning less than $80,000 will see a subsidy rate of 90 per cent for their child in care, while those with two or more children under five in care will see a subsidy of up to 95 per cent.

Those with a combined income of $120,000 per year with one child in care will save $1700 annually.

Member for Ballarat, Catherine King, visited Ballarat Child Care Co-operative to mark the legislation change last Friday morning.

“At this stage of life, other than your mortgage, childcare is the biggest expense and puts a lot of pressure on families,” she said.

“There are also choices having to be made about whether you return to work, or not.

“I’m really pleased the Government’s new changes to the childcare subsidy are coming into place which will make childcare far more affordable for families.

“There are 4200 families in the Ballarat area that will benefit from this change, and hopefully more families are able to access childcare, and increase their hours of work, if that’s what they want to do.

“It also provides access to early education for children, which is really critical in those first five years.”

BCCC acting director Maddie Groux said 91 families are part of the centre’s community, and that the subsidy will lift a load for parents, particularly working mums.

However, Victorian Liberal Senator and shadow minister for education Sarah Henderson criticised the changes, saying in a statement they didn’t go far enough when inflation is taken into account.

“Time and time again, Labor promised lower costs for early childhood education, but all it has delivered is higher fees, leaving many parents further out of pocket than they were before,” she said.

“Education Minister Jason Clare is tone-deaf to the cost-of-living crisis so many Australians are facing.

“Labor’s policy to deliver ‘cheaper child care’ is an absolute failure. Australian families are being hit with higher costs with no relief in sight.”