$2.5 billion childcare reforms to begin tomorrow
MANY Victorian families can expect to have a little more money in their pockets when the federal government’s $2.5 billion boost to childcare kicks in tomorrow. SEE THE AREAS THAT WILL BENEFIT MOST
Education
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LOW income families in regional areas will be the big winners under the federal government’s $2.5 billion boost to childcare that kicks in tomorrow.
New data shows families in Shepparton, Ballarat and Gippsland will now have 80 per cent of their childcare fees covered, up from 61 per cent, meaning they will save as much as $2700 a year.
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More than 209,000 Victorian families — three quarters of all families that rely on childcare — are expected to be better off under the biggest childcare reforms in 40 years.
But 15 per cent of families still have not switched to the new system, and the government is urging them to visit www.education.gov.au/childcare today so they are not caught short.
Education Minister Simon Birmingham said the government was delivering more support to families struggling with the rising cost of living.
“Although we want everyone eligible to switch over before Monday to ensure no disruption to their payments, we have also put in place a safety net that will allow back payments to made within the first three months of operation,” Senator Birmingham said.
Under the changes, subsidies will be increased for low income families, and the annual cap on benefits will be scrapped for about 85 per cent of families who earn up to $187,000.
The government has also introduced an activity test requiring parents to spend at least four hours a week working, training, volunteering or looking for a job.
“One of the key goals of these changes is to make rejoining the workforce or being able to pick up more work that bit easier by offering a childcare system that is more affordable and flexible for more families,” Senator Birmingham said.
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