Childcare fee relief for NSW families only three weeks away

CHILDCARE fee relief is just three weeks away with typical NSW families with two young children look at being more than $2400 a year better­ off under the biggest reforms to the childcare system in 40 years.

A TYPICAL NSW family with two young children could be more than $2400 a year better­ off under the biggest reforms to the childcare system in 40 years.

New data crunched ahead of the new system kicking in on July 2 shows parents with children in care for 28 hours a week could be $1203 a year better off for each child in care.

So far 812,000 families have already opted into the Turnbull government’s new childcare system but it is not automatic — and more than 300,000 families are yet to sign up.

Australian Minister for Education and Training Senator Simon Birmingham Picture: AAP

Education Minister Simon Birmingham said: “Childcare fee relief for many families is just three weeks away, with more than 800,000 Australian families already making the switch over to the new system.

“While many families are set to be hundreds if not thousands­ of dollars a year better off, transitioning to the new system isn’t automatic and families need to make the switch to the new system.

“We’re urging families to not delay, update your details today.”

The reforms include means-tested rebates for low-income earners, who will now have 85 per cent of their childcare costs covered, and the abolition of the $7613 annual cap on government rebates.

There will also be a $1.2 billion childcare safety net to safeguard the care for families who cannot work through sickness or disability.

“These changes will deliver more support for more families,” Mr Birmingham said.

“Altogether our changes are set to benefit nearly one million­ families and it is estimated about 230,000 families will increase their workforce participation.”

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The childcare reforms include means-tested rebates for low-income earners, who will now have 85 per cent of their childcare costs covered.

The average hourly fee for long day care in NSW has gone up by 3.6 per cent to almost $10. The new changes also bring in an hourly rate cap to stop those regular rate rises.

The subsidy of almost 70 per cent will mean each child, who attends childcare for an average of 28 hours a week, receives an average subsidy of almost $9700 a year.

“Our reforms include $2.5 billion in extra investment as well as reforms retargeting subsidies to people working the most and to families earning the least, abolishing the $7613 annual rebate cap for most families and introducing an hourly rate cap to help put downward pressure on fee increases,” Mr Birmingham said.

“Our reforms to childcare combined with our support for preschool are about ensuring more families get more support­ and that children get valuable early learning opportunities­.”