Labor's Plan For Cheaper Child Care

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A Shorten Labor Government will deliver massive cost of living relief for nearly one million Australian families struggling with the costs of child care with a $4 billion investment in early education.

Labor will crack down on excessive fee increases. We will task the ACCC with a new role of investigating excessive fee increases and unscrupulous providers, and we will make those findings public through www.childcarefinder.gov.au. The ACCC will also be tasked with investigating mechanisms for ensuring greater controls on child care fee increases to keep child care affordable.

Labor will also review the system for vulnerable children to make sure that vulnerable and low income families and children aren’t falling through the cracks.

 

LABOR’S PLAN

A Shorten Labor Government will put more money back in working parents’ pockets for 887,000 Australian families. Every single family earning up to $174,000 will get cheaper child care with Labor.

All families earning up to $174,000 will be better off under Labor's plan - slashing up to $2,100 per child off their annual child care bill.

We will increase the subsidy rate from 85 per cent to 100 per cent up to the hourly fee cap (currently $11.77 per hour for long day care) for families earning up to $69,000 who meet the activity test requirements, making child care free, or almost free, for up to 372,000 families. The current tapered reduction will be updated to reflect this new, higher subsidy rate.

Families earning between $69,000 and $100,000 will receive a subsidy rate between 100 per cent and 85 per cent up to the hourly fee cap, and families earning between $100,000 and $174,000 will receive a subsidy rate between 85 per cent and 60 per cent up to the fee cap – delivering an effective increase of 10 per cent.

Families accessing approved Centre Based Child Care, Family Day Care and Outside School Hours Care, including holiday care, will all benefit from the more generous subsidy.

Combined family income

Current Subsidy rate

New subsidy rate

Number of families better off

Average annual saving per family

Up to $69,527

85%

100%

372,000

$1,400

Over $69,528 to $100,000

 

Tapered reduction from 85% to 50% to $174,527

Tapered reduction from 100% to 85%

158,000

$1,400

$100,001 to $174,527

Tapered reduction from 85% to 60%

357,000

$1,200