Yahoo Finance Budget 2023: Childcare change to save parents $119 a fortnight
Child care costs are about to get even cheaper.
The average Australian family will get a savings boost in the federal budget, with the government taking on up to 90 per cent of childcare costs for families earning less than $530,000 a year.
The average Aussie family could save around $119 every fortnight on childcare costs, taking the pressure off already-tight household budgets.
From July 10, the government will start taking more of the brunt and Aussie families could save thousands of dollars each year.
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For example, a couple working full time and earning $65,000 a year each, with a one-year-old child in child care seven days per fortnight, would be paying around $287 per fortnight currently, with the government paying $553.
After July 10, that same family would be paying around $168 per fortnight, with the government chipping in $672. That amounts to a $119 saving per fortnight.
If that same family had two children in child care, the savings would be even more extreme, with the government taking on even more of the cost.
A family with two kids in child care would currently be paying around $329 a fortnight, with the government paying $1,351 per fortnight.
After July 10, that family would only be paying $210 per fortnight, with the government pitching in $1,470.
Next step, universal child care
The change comes as the Albanese government moves towards providing a 90 per cent subsidy for all Aussie families, no matter how much they earn.
The prime minister announced a Productivity Commission review, which began on March 1, 2023. It will provide a final report to the government by June 30, 2024.
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