Childcare subsidy goes up, but so do fees

An estimated 1.2 million Australian families are expected to benefit from changes to childcare subsidies from the government.

A childcare worker has been charged after an investigation into child abuse material uncovered more than 550,000 images. Source: AAP

The 5.4 billion dollar government scheme is aimed at raising subsidies for childcare from 85 to 90 percent, while raising the combined income threshold to 530,000 dollars per household.

But experts say it is a double-edged sword, which could threaten to boost demand at a time when labour remains critical and inflation is still high.

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