Victorian families with two kids in care to be thousands better off

SWEEPING childcare reforms will see an average Victorian family $2600 better off every year. But 350,000 families are yet to make the change ahead of the new system’s July rollout.

AN average Victorian family with two children in childcare will be up to $2600 a year better off under changes starting next month, new data reveals.

Figures based on the details of the 812,000 Australian families who have already signed up show Victorian parents with children in care for 28.4 hours a week could be $1398 a child better off.

Families have three weeks to update their details and be eligible for the new system when it begins on July 2.

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The childcare funding changes are coming in July. Picture: iStock

Under the sweeping reforms, a family earning less than $65,000 a year will have 85 per cent of childcare bills covered by taxpayers.

But parents will have to work, study or volunteer for at least eight hours a fortnight to receive the maximum benefit.

The changes end a $7613 annual cap on government rebates for most families and introduce an hourly rate cap aimed at reducing costs.

The new analysis by the Department of Education shows that a working family on $80,000 with two children under six in long daycare, three days a week at $100 a day, will be more than $3000 a year better off.

And working parents on a combined $150,000 income with two children aged six or under in long daycare three days a week at $100 a day, will be $1000 a year better off.

Education Minister Simon Birmingham with Prime Minister Malcolm Turnbull. Picture: AAP/Mick Tsikas

Education Minister Simon Birmingham has urged up to 350,000 families who have not yet switched to the system to do so as soon as possible.

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

“Relief is on the way for families who have been struggling with the cost of childcare, as long as they register.”

He said that while many families would be “hundreds, if not thousands of dollars a year better off”, moving to the new system was not automatic and families should make the switch through my.gov.au.

“Altogether, our changes are set to benefit nearly 1 million families, and it is estimated around 230,000 families will increase their workforce participation,” he said.

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