Cheaper childcare set to jump major hurdle – myGC.com.au


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Cheaper child care is set to become available in July with the government’s signature election pledge on the precipice of passing.

Families earning up to $80,000 will receive a 90 per cent childcare subsidy, which will be tapered down until it hits the maximum income threshold of $350,000.

The subsidy will decrease by one per cent for every $5000 of income before ending for families earning $350,000.


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A further subsidy will also be in place for second children and those under the age of five.

Indigenous children will receive 36 hours of subsidised childcare each fortnight.

Childcare centres will also have more reporting requirements to reduce fraud.

Labor senator Nita Green hailed the passing of the legislation, calling it incredibly valuable for young Australians.

“Early childhood education gives our youngest Australians the best start to life and it enables parents, especially mothers, to get back into work when they want to,” she said.

Liberal senator Jonathon Duniam said the government needed to address workforce shortages in the “childcare desert”, with childcare places at a premium, especially in regional Australia.


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Senator Duniam said the government had to show a clear map on how many extra places will be needed to meet demand as well as how many extra educators will be required.

“Where are these new places going to open for all the new children entering the system,” he said.

Greens senator Mehreen Faruqi warned of a dearth of childcare workers, citing an estimate predicting an extra 9000 carers will be needed on top of the 7000 current vacancies.

This would jump to 10,000 vacancies next year if the current trend remained, meaning a shortfall of 19,000 workers when the new subsidies kick in on July 1, she said.

“It’s completely inadequate to address the scale of the workforce crisis,” she said.

The Greens also failed in a push to scrap the activity test, where the number of subsidised hours depends on how many recognised activities a parent does.

Activities include paid and unpaid work, study and training.

The test does not apply to the 36 hours offered to Indigenous families.

The laws will be independently reviewed a year from their start date.

© AAP 2022

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