Minister for Superannuation, Financial Services and Digital Economy
Minister for Women's Economic Security
10th December 2021
The Morrison Government is helping thousands of Australian families access more affordable child care by removing the cap on the Child Care Subsidy.
From today, the $10,655 cap will no longer apply, making it easier for parents from more than 18,000 families to return to work or pick up more hours.
This change will particularly support women, who represent the majority of primary carers, by reducing child care costs and giving parents more flexibility if they choose to return to work or want to work more hours.
Minister for Women’s Economic Security Jane Hume said women’s workforce participation is a social and economic priority and critical to Australia’s economic recovery, which is why the Government is prioritising investment in child care.
‘The Morrison Government supports choice for Australian families and is committed to increasing the economic opportunities for Australian women to participate in the workforce.’
As well as removing the cap, around 250,000 Australian families with two or more children will also benefit from an increased Child Care Subsidy from 7 March 2022. Currently, families with multiple children in child care can be financially worse off despite working additional days or hours. The Morrison Government’s additional investment in the Child Care Subsidy will help remove disincentives to work.
These combined policy changes mean that a family earning $110,000 a year with two kids in care, four days a week, will be better off by around $100 each week.
With the implementation of these measures, we will be investing a record $11 billion next financial year through the child care system to keep out-of-pocket costs low for Australian families.