Federal Treasurer Jim Chalmers has handed down the 2022-2023 Federal budget and has labelled it, "A responsible Budget that is right for the times."
And as we come through the Global Pandemic, face ongoing natural disasters and the continued pressure of the rising cost of living, families with young children have something to celebrate - that's the promise of cheaper child care through higher subsidies.
Key Budget Highlights
- An increase in the Child Care Subsidy (CCS) rate from 85 to 90 percent for families, for the first child in care
- An increase the CCS rate for all families earning less than $530,000 combined
- Families will continue to receive existing higher subsidy rates of up to 95 per cent for any additional children in care aged 5 and under.
- Higher CCS rates will cease 26 weeks after the oldest child’s last childcare session, or when the child turns six years old - whichever comes first
Building a better future - The Budget Speech
Federal Treasurer, Jim Chalmers delivered his budget with plenty of hope for families relying on childcare, facing the rising cost of living.
“Early childhood education and care will be more affordable for more than 1.2 million eligible Australian families who will benefit from higher subsidies. Cheaper child care (sic.) is a game-changing investment in families, our workforce, and our economy. It will increase the paid hours worked by women with young children by up to 1.4 million hours a week in the first year alone. That’s the equivalent of 37,000 extra full-time workers. Because our early childhood educators guide our young ones and help them grow in those critical early years, for the best possible start in life – it’s more than care. It is cost-of-living relief with an economic dividend."
But that's not the only relief in this Federal Budget, it's been designed with a five-point plan for cost of living relief, promising cheaper child care, expanding paid parental leave, cheaper medicines, more affordable housing and getting wages moving again.
What it means to ECEC and families
We asked CEO Ash Sachdev what he believes this 'responsible budget' means to ECEC.
"Additional funding and changes to the CCS announced in the Federal Budget means more families will be actively looking for childcare. It's going to mean better workforce support in the sense of 180,000 fee-free TAFE and vocational education places to be delivered in ’23, ultimately meaning more staff coming in to support the industry. The Federal Government are doing their best to get more people into the industry, supporting centres with the increase in demand for families."
While Jacqui McKay, mother-of-two says,
"In an economic climate where, even with two working parents, we are still feeling enormous financial pressure, news of the increased childcare subsidy payments comes as a relief. The extra subsidy support ensures we don’t have to cut back on important extra-curricular activities like swimming lessons or activities to be experienced as a family."
Child Care Subsidy
The Child Care Subsidy (CCS) is the largest form of child care assistance in Australia and is provided by the Federal Government.This subsidy reduces the childcare costs for families with children attending long day care. It also reduces the costs of out of school hours care, family daycare and in home care. To be eligible for the CCS, you or your partner must meet the CCS eligibility criteria.
If your family is eligible to receive childcare support, the amount of funding that your family can receive depends on three (3) factors:
- The type of childcare your child attends,
- The amount of income your family earns, and
- The amount of ‘Activity Hours’ your family conducts
