MP critical of childcare cash

FAMILIES with more than one child in care should have seen their out-of-pocket costs ease as of last Monday.

The change is a result of a Federal Government boost to childcare support which aims to allow people to access a maximum 95 per cent subsidy on costs for second and subsequent children.

Around 250,000 families will benefit from the increase to the childcare subsidy and will save $2260 a year, according to Federal Education Minister, Stuart Robert.

He said a family earning $120,000 a year with two children in care five days a week will save $144 per week compared to current settings.

The subsidy increase was set to take effect from 1 July but was brought forward to 7 March.

The CCS was first introduced in 2018 as a means-tested subsidy to ensure families who earn the least have the most support.

Social Services Minister Anne Ruston said the subsidy increase will support low and middle-income families.

“Today’s changes in relation to childcare are very focused, making sure families in Australia who have large out-of-pocket expenses, those that are low and middle-income earners… will be the families that are targeted by these changes,” she said.

Families will not need to apply for the increased subsidy as Services Australia will automatically authorise the additional funds to flow to eligible households.

However, Member for Bendigo, Lisa Chesters said 74 per cent of local families won’t see any benefit to the change and highlighted that people with just one child in care were unaffected by the subsidy increase.

“As a parent with a child in care, I know how expensive fees can get and how difficult the system can be to navigate,” she said.

“On the surface, today’s changes sound positive, but the truth is they won’t help many families.

“Only Labor has a plan to put an end to out of control fees, which are up 39 per cent under the Liberals.”

-WITH AAP