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More than 93,000 NSW families will be worse off as childcare changes start in six months

MORE than 40 per cent of families in some Sydney electorates will be worse off when the Federal ­Government’s new childcare subsidies kick in this year.

Tanya Plibersek slams Coalition's childcare reforms

MORE than 40 per cent of families in some Sydney electorates will be worse off when the Federal ­Government’s new childcare subsidies kick in this year.

An analysis by the Department of Education, released under Freedom of Information, has revealed the Federal electorates where the greatest number of mums and dads will be out-of-pocket when the changes start in six months.

While 70 per cent of NSW families will receive more taxpayer-funded childcare from July, more than 93,000 families across the state will be worse off, including 47 per cent of households in the Prime Minister’s electorate of Wentworth.

More than 93,000 families will be affected as the new childcare subsidies kick in. Picture: iStock
More than 93,000 families will be affected as the new childcare subsidies kick in. Picture: iStock

In the electorate of Blaxland — which includes the suburbs of Auburn, Berala, Georges Hall and South Grandville — 37 per cent of families will be worse off, with 3764 households set to feel the pinch.

One third of families living in Watson — one of Australia’s poorest electorates — which takes in Croydon Park, Enfiled, Lakemba, and Punchbowl will also be worse off from July 2.

One in five families living in the northeast New South Wales seat of Page — which has the second highest number of families living below the poverty line — will also receive less subsidised care. In Canberra, one in four families with kids in care will be worse off.

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Under the changes, low- and middle-income families earning a combined income of up to $185,000 will no longer be limited by an annual $7613 cap on subsidised childcare.

Those earning more than $185,000 will benefit from an increased cap of $10,000, but those earning more than $350,000 won’t receive any subsidies.

Labor’s childcare spokeswoman Amanda Rishworth accused the Government of trying to the delay the release of the information, making it difficult for mums and dads budgeting for the year ahead.

Childcare spokesman Amanda Rishworth said more than 279,000 families around Australia will be worst off. Picture: Justin Kennedy
Childcare spokesman Amanda Rishworth said more than 279,000 families around Australia will be worst off. Picture: Justin Kennedy
Minister for Education Simon Birmingham said one million families will benefit from the package. Picture: AAP Image/Mick Tsikas
Minister for Education Simon Birmingham said one million families will benefit from the package. Picture: AAP Image/Mick Tsikas

“More than 279,000 families around Australia will be worse off,” Ms Rishworth told The Sunday Telegraph.

“Families shouldn’t have to wait until July 2 to find out they will be worse off under the Government’s new package — they need to prepare for these changes now.”

Simon Birmingham, Minister for Education and Training refuted the accusation and said nearly one million families will benefit from the package.

“Our plan supports families that need it the most by better targeting subsidies to people earning the least and to families working the most,” Mr Birmingham said.

“It is estimated that the package will encourage more than 230,000 families to increase their workforce participation.

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Original URL: https://www.dailytelegraph.com.au/news/nsw/more-than-93000-nsw-families-will-be-worse-off-as-childcare-changes-start-in-six-months/news-story/188161f0633f44af08376ec697ba64c3