Federal budget to provide $ 1.7 billion for childcare

Australian families with two children in childcare will be eligible for an increase in grants starting in July after Treasury Secretary Josh Frydenberg announces a $ 1.7 billion injection into the childcare system.

The new package aims to allow more women to return to work after giving birth, and parents with two or more children under the age of 5 will increase their childcare subsidies from 85% to 95%. I can.

As part of the May 11 budget, the package is projected to save up to $ 2,260 annually on 250,000 households. The Treasury estimates that the measure will boost the economy by about $ 1.5 billion annually and generate more than 300,000 hours of work per week.

“This is equivalent to 40,000 extra people working one day a week,” Frydenberg told reporters in Canberra on Sunday.

Frydenberg also said the entire May 11 budget was aimed at creating more employment opportunities.

“This will be another pandemic budget, which will be offered in the midst of a 100-year-old pandemic, just seven months after the last budget,” he addressed at the Australian Chamber of Commerce. Said while saying.

Women’s Minister Marise Payne welcomed the new measure of giving women more choices.

“It’s about helping the workforce with women who want to work more days or more hours,” she said.

Large companies also believe that new changes are an important step in bringing more women back to work while boosting the economy.

Jennifer Westacot, Chief Executive Officer of the Australian Business Council (BCA), said:

However, opposition leader Anthony Albanese said the new package of the Liberal government was not generous enough.

“There is nothing to regulate costs at record highs under this government. It does nothing to move to a universal and affordable childcare system,” Albanese told reporters in Sydney. Told.

“Child care, as organizations like the Australian Business Council say, is to provide essential services that support our economy and is an essential economic reform,” Albanese said. It was.

“It makes it more complicated and misses the opportunity to undertake significant economic reforms,” ​​Shadow Treasurer Jim Chalmers told Sky News, dozens under the workers’ promised universal childcare plan. He insisted that every family would be better.

AAP contributed to this report.