More than $7,000 cut in child care costs as cheaper child care delivers cost of living relief

Two years 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.

For a family earning $168,000, with one child in care 30 hours a week, Cheaper Child Care has cut out of pocket costs by around $7,440 than they otherwise would be.

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

Since the 2022 election there are 1,200 more early education services, around 95,000 more children in early education and around 48,000 more early childhood workers, but there is more work to do. 

The Albanese Labor Government is rolling out a 15 per cent pay rise to early educators and capping fee increases for families.

The Government will also implement the 3 Day Guarantee which will replace the current Activity Test from January 2026 with guaranteed 3 days a week of access to the Child Care Subsidy.

Eligible families earning between $50,000 and $100,000 are expected to save on average $1,460 per year under the 3 Day Guarantee.

Under the 3 Day Guarantee, more than 100,000 families will be entitled to more hours of subsidised education and care.

The Government will also roll out the $1 billion Building Early Education Fund, which will boost access to early education and care in areas of need, including in the outer suburbs and regional Australia.

This builds on the new, mandatory child safety measures to strengthen child safety in early childhood education and care services.

Quotes attributable to Minister for Education Jason Clare:

“We have made child care cheaper for more than 1 million families. 

“We are delivering a 15 per cent pay rise to build the early education workforce. 

“And next year we will roll out the 3 Day Guarantee to give more families access to the Child Care Subsidy.  

“This is a key part of our plans to build a universal early education system.” 
 
Quotes attributable to Minister for Early Childhood Education Dr Jess Walsh:

“We are delivering more affordable early education and care so that children and families can benefit.

“Easing the family budget is one of the key parts of our reforms to create affordable, accessible and quality early learning.

“The 3 Day Guarantee will provide at least three days of subsidies for early education for families eligible for the Child Care Subsidy, that would otherwise be locked out.”