New era of child care support to benefit families in Lindsay

Monday, 02 July 2018

Prime Minister Malcom Turnbull; Minister for Education and Training, Simon Birmingham and Senator for Western Sydney, Marise Payne visited Mud Puddles Cottage Long Day Care and Pre School at Emu Plains to talk about the new child care reforms in effect from July 2, which will bring much needed child care relief for local families.

“Our reforms will mean more subsidies for Lindsay families working the most and for Lindsay families earning the least, scrapping the annual rebate cap for most families as well as an hourly rate cap to keep downward pressure on fees,” Senator Payne said.

“In fact in Lindsay more than 8,400 families are set to benefit from the reforms.

“Many families in Lindsay will be hundreds if not thousands of dollars a year better off under the Turnbull Government’s reforms,” Senator Payne said.

“Thank you to the owners and managing directors of Mud Puddles Cottage, Kirstie and Mark Jackson, who are coincidentally celebrating one year of ownership today, and the lovely children who attend the centre for spending their morning with us.”

Mrs Jackson was impressed with the new reforms.

“We believe the new child care package is beneficial to our working families,” Mrs Jackson said.

Minister Birmingham said the reforms would put more money back in the pockets of hardworking Australian families.

“The Turnbull Government’s reforms will inject an extra $2.5 billion into the system and are set to benefit almost one million families nation-wide,” Minister Birmingham said.

“We’re also introducing an activity test to ensure subsidies are targeted to those who depend on child care in order to work, train, study or volunteer, or who are looking for work or want to work additional hours.

“This better reflects the needs of modern Australian families and their desire to base their child care around their work, rather than making their work suit their child care. It’s estimated around 230,000 families will increase their workforce participation,” Minister Birmingham said.

“These changes are key to the Turnbull Government’s plan for a stronger economy that helps guarantee the essential services that so many families rely on, such as child care and early learning support.

“Our reforms stand in stark contrast to the Labor Party who voted against more child care support for families and who have refused to outline any plans for Australia’s early childhood education and care system,” Minister Birmingham said.

If families haven’t made the switch yet, they should visit www.education.gov.au/childcare or update their details on myGov so they can start to benefit from the new system.  Back payments of the new Child Care Subsidy for up to three months are available for families who are yet to make the switch. 

 

Key elements of the Turnbull Government’s reforms

  • We’re increasing Australia’s investment in early childhood education and care by $2.5 billion over the next four years so that almost one million Australian families benefit - Low and middle income families will be the greatest beneficiaries from the package.
  • An activity test will ensure that taxpayer’s support for child care is targeted to those who depend on it in order to work, or work additional hours. It is estimated our reforms will encourage more than 230,000 families to increase their involvement in workforce participation. The activity test includes a minimum of four hours of working, looking for work, training/studying and volunteering
  • Fundamentally fair – this package provides the highest rate of subsidy to those on the lowest income levels and more hours of subsidy to those who work the most. We’re increasing the base subsidy from around 72 per cent to 85 per cent for the more than 370,000 families earning around $66,958 or less a year.
  • Low and middle income families, earning up to around $186,958, will no longer be limited by an annual cap on the amount of child care they can access – that’s more than 85 per cent of families using child care. Families earning more than around $186,958 will also benefit from an increased annual rebate cap of $10,190. 
  • Introducing hourly rate caps recommended by the Productivity Commission to help put downward pressure on fee increases by setting a limit on what hourly fee the Government will subsidise based on an efficient price of what it costs to deliver child care
  • Our $1.2 billion Child Care Safety Net recognises vulnerable children and families need extra support. The safety net includes special funding for regional and Indigenous-focused centres to break down barriers to early learning and child care and 12 hours or around two sessions a week of guaranteed access to care/learning for families earning less than around $66,958 even if they don’t meet the activity test.                                                                                            

 

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