Cheaper Child Care continues to deliver cost of living relief for families

The Albanese Government’s Cheaper Child Care policy is delivering cost of living relief for more than one million Australian families by cutting out-of-pocket-costs.

The latest data shows that average out-of-pocket costs decreased by more than 13 per cent from the June quarter 2023 to the June quarter 2024 – following the policy coming into effect. 

Since Cheaper Child Care came into place, average out-of-pocket costs dropped from $4.22 an hour in the June quarter 2023 to $3.66 an hour in the June quarter 2024. 

Additionally, average out-of-pocket costs in the June quarter 2024 remain lower than when the Child Care Subsidy was first introduced in 2018. 

The Government’s Cheaper Child Care policy increased the base subsidy rates from July 2023 for all families earning up to $530,000, and set the maximum subsidy to 90 per cent for families earning $80,000 or less.

Thanks to the increased subsidy, a family earning $120,000, with one child in care three days a week, paid around $2,140 less last financial year than they otherwise would have. 

From July this year, that same family has also received a tax cut of up to $2,679 thanks to the Albanese Government’s tax cuts.

Since the election, there are 860 more early education services, around 68,000 more children in early education and around 30,000 more early childhood workers.

The Government is taking further action to increase the early childhood education and care workforce with a 15 per cent pay rise above the modern award rates for workers over two years. 

Funding for the wage rise will be conditional on providers agreeing to limit fee increases, further supporting affordability for families.

The Government is currently considering the Productivity Commission’s report handed down earlier this month, which includes 56 recommendations to build high-quality universal early learning system that is affordable, accessible and inclusive.

To view the latest Child Care Subsidy report visit education.gov.au/child-care-subsidy-data-report-june-quarter-2024

Quotes attributable to Minister for Education Jason Clare:

“The Albanese Government is delivering on its promise to make Child Care cheaper for Australian families. 

“This is good for children, good for families, and good for Australia.

“Reducing out-of-pocket expenses for Australian families is part of our economic plan to cut the cost of child care and put downward pressure on inflation.”

Quotes attributable to Minister for Early Childhood Education Dr Anne Aly:

“Our Cheaper Child Care reforms are delivering for families, reducing out-of-pocket costs and ensuring more children can access the transformative benefits of early learning. 

“This is real cost-of-living relief for the household budgets of families struggling with the rising cost of living, while also improving economic security for women. 

“Accessible, affordable and inclusive early learning is critical for ensuring our children get the best start in life and are school ready.”