Childcare subsidy Australia: Families will save up to $162 a week but some parents will miss out


Families will get a cash boost of $162 a week under major childcare changes starting today – but 700,000 Aussie mums and dads will get NOTHING

  • The subsidy rate for a second child aged five or under has been increased 
  • Families with two children in childcare will save up to $162 per week on fees 
  • Move costing $1.7billion will benefit about 250,000 families across Australia
  • However, an estimated 700,000 families will not benefit at all from policy  


Families with two children in childcare will save up to $162 per week on fees from Monday – but parents with just one child will miss out. 

Under changes announced in last year’s budget, the Federal child care subsidy rate for a second child aged five or under has been increased for all families earning $180,000 or less.

The move costing taxpayers $1.7billion over four years will benefit about 250,000 families across Australia by an average of $2,260 a year. 

Families with two children in childcare will save up to $162 per week on fees from today

Families with two children in childcare will save up to $162 per week on fees from today

This table shows how much a family will save depending on their income

This table shows how much a family will save depending on their income

A family on $40,000 will save $54 per week, a family on $120,000 will save $144 and a family on $180,000 will save $162.  

Acting Minister for Education and Youth Stuart Robert said: ‘The increase will make the child care subsidy work even harder for low and middle-income families with more than one child in care, bringing their child care costs down significantly.’

However, an estimated 700,000 families will not benefit at all because the policy only affects rates for a second child in care.

If Labor wins the election in May, it will increase child care subsidy rates for every child whose family earns less than $530,000. 

The policy would save families between $600 and $2,900 a year and cost taxpayers $6.2 billion over four years.

If Labor wins the election in May, it will increase child care subsidy rates for every child whose family earns less than $530,000

If Labor wins the election in May, it will increase child care subsidy rates for every child whose family earns less than $530,000

Mr Albanese has also announced an aspiration to one day give every family – including millionaires – a 90 per cent subsidy for childcare regardless of income. 

Labor has not revealed how much this would cost but the Government claims it would be an extra $63billion over the next 10 years.

The Greens are proposing free childcare for everyone. 

Women’s Economic Security Minister Jane Hume, said the Coalition policy was more sensible.

‘Unlike Labor’s universal child care for millionaires, the Morrison Government is targeting our child care spend to make sure carers, overwhelmingly women, get the choices and chances they expect and deserve,’ she said. 

Mr Albanese (centre) has also announced an aspiration to one day give every family - including millionaires - a 90 per cent subsidy for childcare regardless of income

Mr Albanese (centre) has also announced an aspiration to one day give every family – including millionaires – a 90 per cent subsidy for childcare regardless of income 

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