Families $2200 better off with early start

A QUARTER of a million families will be more than $2200 a year better off when additional childcare subsidies are introduced early next year.

The subsidies for families with two or more children in care were due to start next July, but the federal government has brought the start date forward to March.

Education and Youth Minister Alan Tudge said the $1.7bn boost would ease pressure on working families and encourage 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,” Mr Tudge said.

The reforms are targeted at low to middle income families and apply to those with two or more children, with parents set to pay as little as $6 an hour for their second and subsequent children.

Families with two more children aged under five in care will have their child care subsidy (CCS) rate increased by 30 percentage points for their second child and younger children, with a maximum rate of 95 per cent.

It is estimated more than half of eligible families will receive the maximum 95 per cent subsidy.

Mr Tudge said the additional support would take its investment to $11bn a year.

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

Women’s Security Minister Jane Hume said the package would support mothers looking to get back into the workforce or take on more hours.