Free care for kids stopped

THE free childcare ride is over for millions of Australians with the Government set to turn off the spigot on July 12, pushing parents back on to the prepandemic subsidy scheme.

Education Minister Dan Tehan said the $1.6 billion package rushed out in April as the system teetered on the “brink of collapse” had run its course with demand for places spiking back to 74 per cent.

He also revealed childcare would be the first sector to have Jobkeeper withdrawn on July 20 despite the wage subsidy legislated to run until September 27.

Mr Tehan said providers would instead receive a $708 million transition package covering 25 per cent of their pre-pandemic fee revenue but worth a “tiny bit less” to them than if Jobkeeper continued.

“We can’t guarantee that demand won’t go backwards but what we can guarantee through this package is that we’ve done everything we can to support the sector transition, that we’ve consulted with the sector, listened to what they’ve said will be needed to make sure that the demand will continue to grow,” he said.

Labor early childhood education and development spokeswoman Amanda Rishworth slammed the move saying childcare would simply snap back to pre-pandemic costs and “snap families”.

Under the changes, the child care subsidy scheme will resume on July 13 with fees capped at pre-pandemic levels until September 27.

The Government also eased the activity test until October 4 handing parents who have lost their jobs up to 100 hours a fortnight of subsidised care with the only fees they have to pay to cover up to the gap.