Families with two or more children will be able to benefit from the increased Child Care Subsidy (CCS) starting March 7, 2022, four months earlier than originally planned.
The $ 10,655 annual cap was also removed on December 10, 2021 and applies retroactively to the current fiscal year, so families do not have to worry about childcare rations. Family members who reach the limit before this date will be reimbursed for additional out-of-pocket costs.
Eligible families have a 30% increase in CCS rates up to 95%. This will give you a $ 700 discount for this fiscal year and a $ 2,200 discount for the next fiscal year.
Education Minister Alan Tudge said these changes would help ease pressure on working families and encourage more parents to return to work.
After the border was closed for 19 months and the flow of migrant workers was cut off, the country is now experiencing a major lack of skills.
“These changes are great for families and the economy, and it’s important that we can deliver them faster.” Tudge said.. “Removing caps and increasing grants means that more parents, especially mothers, can return to work or spend more time as needed.
According to the Australian Business Council, women’s economic security minister Jane Hume said last year about 90,000 people cited childcare as the reason they did not have a workforce.
“We know that the most effective way to improve women’s economic security is to increase their participation in the workforce.” Hume said.. “Reducing the cost of childcare and removing the impediments to increasing the number of working days and hours removes one of the major barriers to women’s participation in the workforce.”
Modeling by the Treasury found that this change allowed an average of 40,000 parents to work an additional day, boosting the economy by up to $ 1.5 billion annually.
Tudge and Hume said these additional benefits were targeted at families with two or more children, as the analysis showed that they were experiencing the largest workforce impediments.
“In some cases, deducting childcare costs and losing some of the family’s tax incentives means spending more or less extra days with no financial gain,” Tudge said. rice field.
Mr Tudge said the federal government was able to move forward after the bill went faster than expected.