Out-of-pocket childcare costs down, following Child Care Subsidy introduction

"Our Child Care Package is leaving more dollars in the pockets of Australian families," says Education Minister, Dan Tehan. Picture: Virginia Star
"Our Child Care Package is leaving more dollars in the pockets of Australian families," says Education Minister, Dan Tehan. Picture: Virginia Star

Out-of-pocket child care costs for families are down 7.9 per cent since the government's Child Care Subsidy was introduced in July 2018.

Figures recently released by the Australian Bureau of Statistics' consumer price index (CPI) revealed the savings.

Minister for Education Dan Tehan says the Morrison government's child care reforms are supporting Australian families to access child care services.

"Our government is providing a record $8.6 billion investment in child care this year," Mr Tehan said.

"Our Child Care Package is leaving more dollars in the pockets of Australian families.

"Under the new system there are legislated limits on the amount of subsidy the government will pay per hour.

"Across Australia, including in every capital city, average hourly fees are lower than the hourly rate cap. The latest data shows that around 85 per cent of centre-based day care services have an average hourly fee that is lower than the hourly rate cap.

"This means more hard-working families can take advantage of our government's Child Care Subsidy to work, learn and volunteer.

Since rolling out the new system, more than $7.2 billion in subsidies has been paid to support more than 1.6 million children in more than 1.1 million families.

In the 12 months to June quarter 2019, All Groups CPI rose 1.6 per cent and child care decreased by 7.9 per cent.

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