Australian families could miss out on childcare subsidy if they don’t make changes

HUNDREDS of thousands of Australian families risk missing out on new childcare subsidies if they fail to make some changes.

Hundreds of thousands of Australian families risk missing out on new childcare subsidies if they fail to make the switch to the new system. Generic photo.

HUNDREDS of thousands of Australian families risk missing out on new childcare subsidies if they fail to make the switch to the new system.

New government data has revealed about 673,000 families have already signed up to the system ahead of the July 2 deadline.

But the Turnbull Government has warned a further 489,000 families still need to update their details to receive the advantages.

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Prime Minister Malcolm Turnbull said the biggest improvement to childcare and early learning in 40 years was “just weeks away”.

“Families need to act now to take advantage of the extra financial help our reforms are set to deliver,” he said.

“I understand how busy many families are, but little more than 10 minutes updating details online can deliver hundreds or thousands of dollars in extra childcare support.”

Prime Minister Malcolm Turnbull speaks to children at a childcare centre last month. AAP Image/Brendan Esposito

Under the $2.5 billion investment, more subsidies will be offered for families working the most and for the lowest earners, scrapping the annual rebate cap for most.

Parents must update information on the family’s income and level of activity to ensure those on the lowest incomes but who also require the most hours of care in order to work, train or study, receive the greatest support.

It is estimated the reforms, which give preference to parents who are working, studying, training or volunteering, will see more than 230,000 families increase their involvement in the workforce.

Education Minister Simon Birmingham said many families will be “hundreds if not thousands of dollars a year better off” under the reforms but they needed to make the switch to the new system.

“More support for more families is just weeks away but the switchover to the new system isn’t automatic,” he said.

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