Families in Gippsland have been urged to switch to the Federal Government’s new child care and early learning system.
The Nationals Member for Gippsland Darren Chester said those who make the change will get full benefit from the new child care subsidy.
“Families in Gippsland need to make the switch by July 2 or they could miss out on receiving the new child care subsidy,” Mr Chester said.
“Many families in Gippsland will be hundreds, if not thousands, of dollars a year better off under the Federal Government’s child care reforms, but they need to change over to the new system.
“Low and middle income families will be the greatest beneficiaries from the package.
“I urge local families and child care and early learning providers yet to visit www.education.gov.au/childcare to update their details as soon as they can.”
Minister for Education and Training Simon Birmingham said the switchover to the new system was not automatic.
“The Turnbull Government’s reforms are set to benefit almost one million families nationwide 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 estimated around 489,000 families across Australia still needed 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 July 2,” Minister Keenan said.
Families have been urged to register for the new system, even if their circumstances were likely to change before July 2.
Updates can be made via their Centrelink online account via MyGov. If those who have forgotten their MyGov log-in or need assistance, can phone the helpdesk on 136 150
Key elements of the Federal Government’s new child care system are:
• An increase in Australia’s investment in early childhood education and care by $2.5 billion over four years, benefitting almost one million Australian families.
• 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. The reforms are estimated to 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.
• The 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. The base subsidy will increase 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.
• The $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.
