Child care costs and government subsidy

Media Release
  • Minister for Education

Australian families continue to pay less out-of-pocket costs on average under the Government’s Child Care Package, according to the latest CPI data released today.

The Australian Bureau of Statistics data shows that on average out-of-pocket costs are 4.2 per cent lower than they were before the introduction of the Child Care Subsidy.

Minister for Education Dan Tehan said a million eligible families received up to 85 per cent of their child care fees through the Child Care Subsidy.

"Our Government’s Child Care Subsidy is designed to assist parents with the cost of child care while they’re working, training, studying or volunteering," Mr Tehan said.

"Under the Child Care Subsidy, all families are expected to make a co-contribution to the cost of their child care fees, based on their income.

"Our Government introduced an hourly fee cap as part of its Child Care Subsidy package that operates as a ceiling for hourly fees. Child care providers will not receive any Federal Government subsidy for fees charged above the cap.

"86 per cent of child care services charge fees at or below the Government’s hourly fee cap. That means out-of-pocket costs were less than $5 per hour per child for the parents of 72.4 per cent of children in centre based day care in the September quarter, and out-of-pocket costs were less than $2 per hour per child for the parents of nearly 24.4 per cent of children in centre based day care.

"When Labor was last in government child care fees increased by 53 per cent.

"Child care providers have told the Government the three biggest drivers of their costs which they pass on to customers through fee increases are staffing costs, rent and insurance."

In the last financial year, the Australian Government helped more Australian families manage the costs of child care by committing record and growing funding of around $8.6 billion to the Child Care Subsidy.

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