Making child care more affordable and boosting workforce participation in Maranoa

May 14, 2021

Families in Maranoa will reap the benefits from an additional $1.7 billion investment in child care as part of the 2021-22 Budget.

Maranoa MP David Littleproud said the changes, which deliberately target low and middle income earners, will cut the cost of child care and provide an incentive to take on an additional day or two of work for many families.

“This is a targeted investment that makes child care more affordable, increases workforce participation and boosts the economy,” Mr Littleproud said.

As part of the 2021-22 Budget, and starting on 1 July 2022, the Government will:

Increase the child care subsidies available to families with more than one child aged five and under in child care – around 3910 families in Maranoa are in this position.

Remove the $10,560 cap on the Child Care Subsidy, benefitting around 18,000 families

For those families with more than one child in child care, the level of subsidy received will increase by 30 percent to a maximum subsidy of 95 per cent of fees paid for their second and subsequent children.

Half of Australian families will now receive a 95 per cent subsidy for their second and subsequent children.

For example, a single parent in Maranoa on $65,500 with two children in four days of long day care who chooses to work a fifth day will be $71 a week better off.

A family earning $110,000 a year will have the subsidy for their second child increase from 72 to 95 per cent, and would be $95 per week better off for four days of care.

A family with three children on $80,000 would have the subsidy increase from 82 to 95 per cent for their second and third child and be $108 per week better off for four days of care.

Mr Littleproud said the changes will have benefits for both families and the economy in Maranoa.

“This going to give greater choice to local parents who want to work an extra day or two a week,” Mr Littleproud said.

“These measures will help remove the barriers for parents, particularly mothers, to return to the workforce or to increase their hours, as their family grows.”

This announcement builds on the Morrison Government’s 2018 Child Care Package which has kept out-of-pocket child care costs low for Australian families.