New childcare subsidies kick in, 280,000 Qld families affected

Childcare should now be cheaper in Townsville as new legislation springs into action. See what you’re eligible for.

New childcare subsidies take effect July 1.

A new child care subsidy which takes effect July 1 should save hundreds of thousands of Queensland families money, the federal government says.

Queensland Senator Nita Green said the subsidy was cost-of-living relief, and an opportunity for more families to work, grow and thrive.

Legislation to change the child care subsidy took effect on Saturday.

From July 10 most families with children in early childhood education and care would receive more money back in their pockets through the subsidy, including some who were previously not eligible, Ms Green said.

There were 13,370 childcare centres in Australia as at March 2020.

The changes would cut costs by about $1,700 a year for the average family on about $120,000 a year, who have a child in care three days a week, the Senator said.

For families on a combined income of $80,000 or less, the subsidy rate will lift to 90 per cent.

Nationwide 1.2 million families would be affected, Ms Green said.

For families with two or more children aged five or under in care, the higher subsidy of up to 95 per cent will remain.

The number of Indigenous children in early education would also be boosted by increasing the eligibility hours for subsidised child care each fortnight, Ms Green said.

Letters seen by News Corp from Brisbane child care centres show some are increasing fees nine to 10 per cent.

Originally published as New childcare subsidies kick in, 280,000 Qld families affected