Investing in Child Care

Child care is an important driver of higher workforce participation and women’s economic security.

In the 2021-22 Budget, the Morrison Government is making a further, targeted investment in childcare to increase the affordability of childcare for low- and middle-income families.

Starting on 1 July 2022, the Government will increase the Child Care Subsidy for families with more than one child aged five and under in child care.

For families with more than one child in child care, the level of subsidy received will increase by 30% to a maximum 95%.

This will benefit around 250,000 families, by an average of $2,200 per year.

The Morrison Government will also remove the $10,655 cap on the Child Care Subsidy. This will benefit around 18,000 families.

It is estimated these changes will result in around 40,000 mums or dads being able to work an extra day per week and boost our economy by $1.5 billion a year.

This additional support is part of the Morrison Government’s plan to support families and secure our economic recovery.

The Morrison Government is providing additional targeted support for thousands of child care providers impacted by extended COVID-19 lockdowns, through new fortnightly payments.  You can read more here.