Greater child care support brought forward

Families in Bonner will benefit from greater child care support sooner, with increased Child Care Subsidy (CCS) for multiple children brought forward from 7 March 2022, four months earlier than first expected.

The increased subsidies were due to come into effect on 11 July 2022, but the Government has been able to work with Commonwealth agencies and service providers to make necessary technical changes sooner.

From 7 March 2022, families with two or more children aged five years and under in care will have their CCS rate increased by 30 percentage points for their second child and younger children, up to a maximum rate of 95 per cent.

A family earning $11,000 a year with two kids in care, four days a week will be better off by $100 a week.

The $10,655 annual cap will also be scrapped on 10 December 2021 and applied retrospectively for the whole 2021-22 financial year, meaning families who hit the cap before the date will receive a refund on any excess fees paid.

There are around 1,700 families in Bonner that have two or more children in care and could benefit from the increased subsidy. More than half of eligible Australian families will receive the maximum 95 per cent subsidy.

Federal Member for Bonner Ross Vasta MP said the support would be targeted at those that need it most.

“We know child care costs can really add up when you have two, three or more children in care and this package will help those families by significantly reducing out-of-pocket costs for the second child and younger children,” Mr Vasta said.

“This will make a real difference in the lives of families in Bonner.

“The changes will also see this government’s total investment in child care grow to $11 billion a year they build on the Child Care Package we introduced in 2018 that is still keeping out-of-pocket costs low.”

Minister for Education and Youth Alan Tudge said the changes would ease pressure on working families in Bonner and encourage more parents into work.

“These changes are good for families and great for the economy, and it’s significant that we are able to deliver them sooner,” Minister Tudge said.

“Removing the cap and increasing subsidies will allow more parents, particularly mothers, to return to work or take on more hours if they choose to.”

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Cutting red tape for families

Families with children attending child care during the school holidays will find it easier to re-enrol for the following year after the Morrison Government passed legislation to amend the Child Care Package.

Federal Member for Bonner Ross Vasta MP said the updated legislation meant families and providers would generally not have to re-enrol children unless they are away from care for more than 14 weeks at a time.

“This means children stay enrolled for the duration of the school term, avoiding additional paperwork when the holidays start and families need to access child care again,” Mr Vasta said.

Minister for Education Dan Tehan said the Government’s Child Care Package was assisting more than 900,000 families to access child care.

“We have cut red tape for families using child care during the school holidays,” Mr Tehan said.

“Our Government is making life easier for parents who are working, looking for work, studying or volunteering.

“We have also removed the 50 per cent limit on the number of children that a child care provider can self-certify to receive the Additional Child Care Subsidy (child wellbeing) due to the risk of serious abuse or neglect.

“This will further reduce barriers to vulnerable children and disadvantaged families accessing quality early learning and child care.”

Mr Vasta said the amendments passed by the Senate were a result of the Government listening to parents and child care providers and acting on their feedback.

“We are delivering the reforms the economy needs to support jobs and growth,” Mr Vasta said.

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NEW ERA OF CHILD CARE SUPPORT TO BENEFIT FAMILIES IN BONNER

More child care support for more families in Bonner is here with the start of the Turnbull Government’s new child care system.

Member for Bonner Ross Vasta said the reforms would provide much needed child care relief for local families.

“Our reforms will mean more subsidies for Bonner families working the most and for Bonner families earning the least, scrapping the annual rebate cap for most families as well as an hourly rate cap to keep downward pressure on fees,” Mr Vasta said.

“In Bonner over 7550 families are set to benefit. Many local families will be hundreds if not thousands of dollars a year better off under the Turnbull Government’s reforms. 

“Our reforms will inject an extra $2.5 billion into the system and are set to benefit almost one million families nation-wide.

“We’re also introducing an activity test to ensure subsidies are targeted to those who depend on child care in order to work, train, study or volunteer, or who are looking for work or want to work additional hours.

“This better reflects the needs of modern Australian families and their desire to base their child care around their work, rather than making their work suit their child care. It’s estimated around 230,000 families will increase their workforce participation. 
 
“These changes are key to the Turnbull Government’s plan for a stronger economy that helps guarantee the essential services that so many families rely on, such as child care and early learning support.”

If families haven’t made the switch yet, they should visit www.education.gov.au/childcare or update their details on myGov so they can start to benefit from the new system. Back payments of the new Child Care Subsidy for up to three months are available for families who are yet to make the switch. 

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LABOR’S CHILD CARE SCARES ARE JUST LIES

It’s time Labor’s Amanda Rishworth familiarised herself with the Turnbull Government’s reforms to early childhood education and care so that she stops falsely scaring Bonner families, especially given she’s said a Shorten Labor Government would adopt our policy.

“I intend to allow the new system to have time to bed down before I look at a proper review”
– Amanda Rishworth, Speech – McKell Institute, 17/5/2018

Instead, she’s been trying to scare families by spinning lies. 

Ms Rishworth’s claim last week that a “family who has one child with severe autism” would not have access to subsidies under the Turnbull Government’s new system because “one parent doesn’t work because they care for that older child” is a lie. The parent not working is presumably eligible for a carer’s allowance meaning they would qualify for extra support under the $1.2 billion safety net that’s built into our new child care and early learning system. 

Our new system is set to benefit over 7500 families in Bonner and it’s targeted to families working, looking for work, studying, volunteering or who have other circumstances that meet the light touch, four hours a week activity test.

In fact, our activity test will motivate people to go into work, work more or increase their community engagement. It is estimated 230,000 Australians will increase their workforce participation because of our reforms.
 
Our reforms include an extra $2.5 billion investment that will mean more subsidies for families working the most and for families earning the least, scrapping the annual rebate cap for most families as well as an hourly fee cap to keep downward pressure on fee increases.
 
Despite a Productivity Commission report, two Senate inquiries and months of Parliamentary debate, Labor still insist on running a talkfest that’s been going for more than a year and they haven’t come up with any solutions to Australia’s broken child care system.
 
At the end of all that, Labor have said their solution is just to copy what the Turnbull Government is doing.

Where Ms Rishworth differs from the Government however, is that she’s refused to rule out extending taxpayer support to people who don’t meet the light touch, four hours a week activity test or those on high incomes. In fact, Labor’s 2016 election policy would have delivered an annual $176 million windfall to families earning over $250,000 at the expense of low to middle income earners. 

In stark contrast to Labor’s child care scaremongering, the Turnbull Government has been focused on ensuring families understand they need to visit www.education.gov.au/childcare to make the switch to the new system. 
 
While around half of families using child care in Bonner have now switched over, 2 July is now just around the corner so it’s time to make the switch today. 

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TIME RUNNING OUT FOR FAMILIES TO SWITCH OVER TO NEW CHILD CARE SYSTEM

Families in Bonner are urged to make the switch to the Turnbull Government’s new child care and early learning system or risk missing out on the new subsidies.

New data shows that with just weeks to go until the new system starts on 2 July, around 48% of families have already made the switch.

“Families in Bonner need to make the switch by 2 July, or they could miss out on receiving the new child care subsidy,” Federal Member for Bonner Ross Vasta said.

“Over 7,500 families in Bonner will be hundreds if not thousands of dollars a year better off under our reforms but they need to make the switch to the new system.

“I urge local families and child care and early learning providers yet to update their details to visit www.education.gov.au/childcare as soon as they can.

“Even if your circumstances are likely to change before 2 July, just get online and get into the new system. Updates can be made easily at any point via your Centrelink online account via myGov.

“If you’re a family who can’t remember your myGov log-in or you need a little assistance, you can phone the helpdesk on 136 150. There are many staff on the help desk and call-wait times are very short at the moment.”

Minister for Education and Training, Simon Birmingham said while more support for more families is just weeks away, the switchover to the new system isn’t automatic.

“The Turnbull Government’s reforms are set to benefit almost one million families nation-wide and it’s estimated around 230,000 families will increase their workforce participation,” Minister Birmingham said.

“Our reforms include an extra $2.5 billion investment that will mean more subsidies for families working the most and for families earning the least, scrapping the annual rebate cap for most families as well as an hourly rate cap to keep downward pressure on fees. 

Minister for Human Services Michael Keenan said the Turnbull Government estimates that around 489,000 families across Australia still need to update their details and switch over in time for the new system. 
 
“Over the last few months we’ve been letting families know what they need to do to make the switch. While the deadline may have seemed far off in the distance for many people, now it’s just around the corner on 2 July,” Minister Keenan said.

Key elements of the Turnbull Government’s new child care system:

• We’re increasing Australia’s investment in early childhood education and care by $2.5 billion over four years so that almost one million Australian families benefit – low and middle income families will be the greatest beneficiaries from the package.

• An activity test will ensure that taxpayer’s support for child care is targeted to those who depend on it in order to work, or work additional hours. It is estimated our reforms will encourage more than 230,000 families to increase their involvement in workforce participation. The activity test includes a minimum of four hours of working, looking for work, training/studying and volunteering

• Fundamentally fair – this package provides the highest rate of subsidy to those on the lowest income levels and more hours of subsidy to those who work the most. We’re increasing the base subsidy from around 72 per cent to 85 per cent for the more than 370,000 families earning $66,958 or less a year.

• Low and middle income families, earning up to and including $186,958, will no longer be limited by an annual cap on the amount of child care they can access – that’s more than 85 per cent of families using child care. Families earning more than $186,958 will also benefit from an increased annual subsidy cap of $10,190 per child.

• Our $1.2 billion Child Care Safety Net recognises vulnerable children and families need extra support. The safety net includes special funding for regional and Indigenous-focused centres to break down barriers to early learning and child care and 12 hours of guaranteed access to care/learning for families earning less than $66,958 even if they don’t meet the activity test, which could equal two six-hour sessions per week.

Examples of how families are set to benefit:

• A family on $50,000 – both parent/s working, with two children aged under 6 in long day care two days a week at $100 a day will be around $2,000 better off a year.

• A family on $80,000 – both parent/s working, with two children aged under 6 in long day care three days a week at $100 a day will be over $3,000 better off a year.

• A family on $150,000 – both parent/s working, with two children aged 6 and under in long day care three days a week at $100 a day will be more than $1000 better off a year.

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HELPING FAMILIES TRANSITION TO NEW CHILD CARE AND EARLY LEARNING SYSTEM

Bonner families are being urged to sign on and start their changeover to the Turnbull Government’s new child care and early learning system which kicks off in less than three months. 

Federal Member for Bonner, Ross Vasta said with more than 7,500 families in his electorate set to benefit from the Turnbull Government’s new package, it was time for them to make the switch to the overhauled system starting on 2 July 2018

“The online transition portal we’ve set up is live and it’s time for people to take action,” Mr Vasta said.

“Our new child care package will provide the greatest hours of support to the families who work the longest hours, and the greatest subsidy and financial support to the families who earn the least.  

“With more support for more Bonner families just around the corner, families should visit www.education.gov.au/childcare and make the switchover as soon as they can so they’re ready for the new system from day one.”

Minister for Education and Training Simon Birmingham said the child care changes are focused on helping the families that need it most. 

“Our overhaul of child care and early learning subsidies and extra $2.5 billion investment in the system will introduce hourly rate caps to put downward pressure on fee increases and abolish the annual rebate cap for most families,” Minister Birmingham said. 

“Overall it will mean around one million families benefit and it’s estimated the package will encourage more than 230,000 families to increase their workforce participation.

“The biggest winners will be families working, studying or volunteering that earn less than $250,000 a year. Even if your family has a higher income, you’ll still stand to gain from our change to lift the annual rebate cap to around $10,000.”

Recent changes to the Consumer Price Index have also seen hourly rate caps and annual caps increase and will mean under the new child care and early learning package:

• More than 370,000 families earning around $66,958 or less a year will have their base subsidy increase from 72 per cent to 85 per cent;

• Families earning up to $186 958, will no longer be limited by an annual $7,613 cap on the amount of child care they can access – that’s more than 85 per cent of families using child care and early learning and means families won’t run out of subsidy mid-year as happens now;

• Families earning between $186,958 and $351,248 will benefit from an increased annual rebate cap of $10,190 per child;

• Hourly rate caps will rise from $11.55 to $11.77 for Centre Based Day Care, $10.70 to $10.90 for Family Day Care, whilst families with children in Outside School Hours Care will also see their hourly rate cap rise from $10.10 to $10.29.

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