Coalition Government cuts out-of-pocket costs for Maranoa families with multiple kids in child care

March 7, 2022

Member for Maranoa David Littleproud today welcomed a significant increase in the rate of Child Care Subsidy (CCS) for Maranoa families with multiple children aged five or under in child care.

Mr Littleproud said the Australian Government had lifted the rate of CCS by 30 per cent for the second child aged five or under and any younger children in child care, up to a maximum rate of 95 per cent.

The higher subsidy will boost support for working families and follows the removal of the annual CCS cap of $10,655 for families earning over $190,015 (in 2021-22 terms) from 10 December 2021 – and beyond.

“These measures will ease the cost of child care for 740 Maranoa families, who on average will be around $2,260 a year better off,” Mr Littleproud said.

“For a family who are charged a typical fee and earns $120,000 a year with two children in child care for five days per week, the saving will be $144 per week compared to current settings.”

The Coalition Government fast-tracked the increased subsidy, bringing it forward from 1 July 2022 to today.

Mr Littleproud was today on the ground at Winton Council’s Little Swaggies Child Care, one of the 74 Child Care Services in his electorate, to hear firsthand how the changes will affect local families.

“Families do not have to do anything to receive the increased subsidy – it will flow to families automatically, with no need to apply to Services Australia,” Mr Littleproud said.

“But families keen to know their benefits can go to the new StartingBlocks.gov.au website and use the simple family estimator.”

Mr Littleproud said the Australian Government measures would make a significant contribution to easing the pressure on the cost of living for many families with young children.

“For local families with more than one child aged five or under in child care, today’s increase in the CCS, means more money in your pocket each week.

“This is good news for eligible families who will benefit from reduced out-of-pocket child care costs, which also provides an incentive to consider either returning to work or working additional hours.

“Local families know that the cost of child care, particularly for families with more than one child in care can be a barrier to pursuing employment or working additional hours.

“This is especially so for local mums who may be able to use this to get back into the workforce or to increase their hours in their current job.”

Mr Littleproud said that currently about one million Australian families are being supported by record levels of child care funding – in Maranoa, 5,500 children are being supported under CCS by almost $35 million.

“Childcare changes lives – it removes barriers and provides opportunities to those who need it most. The Government’s increased investment in childcare, around $10.3 billion this financial year alone, means that around one million families will benefit.

“It’s all about empowerment, not dependence. Unlike Labor’s free childcare for millionaires, the Coalition Government is targeting our childcare spend to make sure carers, overwhelmingly women, get the choices and chances they expect and deserve.”

Table: What increased CCS means for families with two children in child care five days a week

Family income	Previous out-of-pocket child care cost per week	Current subsidy (standard CCS rate)	New 2nd child subsidy	Future out-of-pocket child care cost per week	Total better off per week
$40,000	$162	85%	95%	$108	$54
$80,000	$198	82%	95%	$126	$72
$110,000	$306	72%	95%	$180	$126
$120,000	$342	68%	95%	$198	$144
$140,000	$414	62%	92%	$252	$162
$180,000	$540	50%	80%	$378	$162