Release type: Joint Media Release


Cheaper child care providing cost of living relief for family budgets


The Hon Jason Clare MP
Minister for Education
The Hon Dr Anne Aly MP
Minister for Early Childhood Education
Minister for Youth

One year in, more than 1 million Australian families have benefited from the Albanese Government’s Cheaper Child Care, delivering real cost of living relief to household budgets.

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

The increased Child Care Subsidy means a family earning $120,000, with one child in care three days a week, has saved $2,140 this financial year.

From next week, that same family could also receive tax cut of up to $2,679 thanks to the Albanese Government’s tax cuts. 

All Australian families earning under $530,000 per year are entitled to a subsidy, with percentage of subsidy adjusted based on income.

Families will continue to receive existing higher subsidy rates for their second and subsequent children aged five and under in early childhood education and care.

The number of Indigenous children in early education has also been boosted by increasing the baseline number of hours of subsidised early childhood education and care families are eligible for each fortnight.

Since the election there are 730 more early education services, around 60,000 more children in early education and around 30,000 more early childhood workers, but there is more work to do. 

In the Budget, the Government has made a multi-billion dollar provision for better wages for aged care and child care workers, and the Government will soon receive the Productivity Commission’s final report into early childhood education and care. 

Our Budget and our economic plan are all about easing the cost of living for Australians and Cheaper Child Care is an important part of that agenda.

Families can calculate their Child Care Subsidy by visiting Child Care Subsidy Calculator |

Quotes attributable to Minister for Education Jason Clare:

“The Albanese Government’s Cheaper Child Care changes have made early childhood education and care more affordable for around 1.2 million Australian families.

“Cheaper Child Care is part of our economic plan to cut the cost of child care and putting downward pressure on inflation.

“In contrast, as the ACCC recently revealed, in the last four years of the former government, prices went up by twice as much as the OECD average.

“Cheaper Child Care is good for children, good for parents, and good for the economy.”

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

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

“More affordable early childhood education and care means more Australian children can access the transformational benefits of foundation years learning no matter their postcode or background.

“Families now have greater choice when it comes to balancing the early education and care needs of children along with being able to work more hours and boost household income.

“Our Cheaper Child Care reforms are an important first step in creating a universal system that is affordable, accessible and inclusive.”