Helping Australian families access cheaper child care

The Hon Jason Clare MP
Minister for Education
The Hon Dr Anne Aly MP
Minister for Early Childhood Education
Minister for Youth

Legislation to deliver the Albanese Government’s commitment to cut the cost of child care will be introduced to federal parliament today.

The Government’s reforms will cut the cost of child care for about 1.26 million families.

Child care costs have soared 41 per cent in the past eight years.

One of the most important commitments the Government made at the election was to cut the cost of child care. This legislation implements that commitment.

96 per cent of families with children in early childhood education and care will benefit from this reform, and no Australian family will be worse off.

Making child care cheaper will help ease the cost-of-living pressure on a lot of families and give parents the opportunity to work more and earn more if they want to.

A lot of Australians want to work more, but if they do a lot of that pay is gobbled up by child care costs. It means it’s not worth it.

At the moment, 60 per cent of mothers with young children work part time hours.

Treasury estimates the Government’s child care reforms will add the equivalent of up to 37,000 extra full-time workers to the economy in 2023-24.

Under these reforms, a family on the median combined income of $120,000 with one child in early childhood education will save $1,780 in the first year of this plan.

The Higher Child Care Subsidy for families with multiple children aged five or under in early childhood education will be retained.

The legislation also introduces measures to increase transparency in the early childhood education and care sector by requiring all large providers to publicly report revenue and profits, together with commercial leasing information.

Quotes attributable to Minister for Education, Jason Clare

“Child care costs soared by 41 per cent in the past eight years.

“Labor’s plan for Cheaper Child Care is good for kids, good for families and good for the economy.

“It will give children access to critical early education and it gives more parents, especially mums, the opportunity to do more paid work if they want to.

“That means thousands more skilled workers for our economy. That’s why this isn’t just a cost-of-living measure – it’s economic reform.”

Quotes attributable to Minister for Early Childhood Education, Dr Anne Aly

“Early childhood education and care plays a vital role in supporting families and improves the education and health outcomes of our children.

“These changes will help ease cost of living pressures, improve women’s economic security and ensure all Australian families can make the choices around workforce participation and early childhood education that work for them.

“Boosting access to early childhood education and care means more children can access the benefits of foundation years learning, ensuring our kids are ready for a life of exploration and learning.”

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