New childcare savings to benefit Coast families

Member for Robertson, Gordon Reid, at Little Miracles, Terrigal

Almost 7,000 Central Coast families will benefit from the Federal Government’s cheaper childcare plan, set to take effect from July 1, 2023.

Member for Robertson, Gordon Reid, said the Government introduced laws this week which will help cut out-of-pocket costs for families with children in early education and care, with around 6,900 families in the region set to benefit.

“Childcare costs have skyrocketed – they’ve increased 41 per cent in the past eight years,” Reid said.

“It’s a big cost to families and a massive disincentive for parents, especially mums, to do more paid work.

Reid said the new laws mean that around 96 per cent of local families with children in early education and care will be better off.

“For example, a family earning $120,000 with one child in early education and care will be more than $1,700 better off.

“This is good for children, good for families and good for our economy.”

He said the measures would not only help families with cost-of-living pressures by cutting the cost of childcare, but would also help help get thousands of skilled workers into the economy.

“This is important economic reform that the Albanese Government promised to deliver at the election,” he said.

“Legislation introduced this week will implement this promise.

“It means children get access to early education and parents, especially mums, can do more paid work if they want to.”

Under the proposed changes, a family on a combined annual income of $120,000 with one child in care would save about $1,780 in the first year.

Households with a combined income of $75,000 would get a 90 per cent subsidy, while those earning $500,000 a year would receive a seven per cent discount.

Families with a total income of $530,000 or above would not be eligible for any subsidy.

Source:
Media release, Sep 28
Member for Robertson, Gordon Reid