Average family to save $1,300 under childcare changes

The government’s childcare reforms kick in on July 2, but hundreds of thousands of families still need to switch to the new system.

Changes to Child care package

Changes to Child care package Source: Getty Images

A family accessing the average 28.5 hours of childcare per week could save about $1,300 per year under a new subsidies system that begins in July, according to Turnbull government modelling.

812,000 families have already switched over to the new system ahead of the July 2 deadline - but 350,000 are yet to do so, risking missing out on payments.

"While many families are set to be hundreds if not thousands of dollars a year better off, transitioning to the new system isn't automatic and families need to make the switch to the new system through myGov,” Education Minister Simon Birmingham said.

The government is cancelling existing payments like the Child Care Benefit and the Child Care Rebate, merging them into a single means-tested subsidy.

Families on the lowest incomes will receive the highest level of subsidy, with 85 per cent of their childcare costs covered, while families in the highest income bracket will have just 20 per cent subsidised.

The government will also assess how many hours a fortnight couples spend working, studying, interning, searching for a job or volunteering.


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By James Elton-Pym

Presented by Euna Cho




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