Child care subsidies were already in place, but by 2022 fees for centre-based care had risen 41 per cent over eight years and the government said high costs were adding to cost-of-living pressure and stopping parents, especially women, from working more. After taking its cheaper child care plan from a 2020 budget reply commitment to government in 2022, Labor used this bill to lift subsidy rates, expand support for families with multiple young children and add provider transparency rules, with the main subsidy changes starting on 10 July 2023.
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Oct 2020
Labor announces its cheaper child care plan in a budget reply
The later Treasurer said in October 2022 that the policy had first been unveiled in his first budget reply two years earlier as a central economic commitment.
Hansard ↗
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21 May 2022
The election brings the cheaper child care commitment into government
Government speakers later tied the bill directly to Labor forming government after the 21 May 2022 election and moving to deliver the promised reform.
Hansard ↗
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27 Sept 2022
Government says rising child care fees are blocking parents from work
When introducing the bill, the minister said child care costs had risen 41 per cent in eight years and cited ABSThe national statistics agency. The page uses ABS data to support claims that child care costs were stopping some people from looking for work. data that 73,000 people who wanted work had not looked for it because they could not make child care costs work.
Hansard ↗
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23 Nov 2022
Parliament passes the bill
Both houses agreed on the same text, clearing the way for higher subsidy rates and new provider reporting and transparency rules.
Parliamentary timeline ↗
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29 Nov 2022
Royal AssentThe final step that turns a passed bill into law. The page notes that this is what made the cheaper child care changes legally effective. turns the bill into law
Royal AssentThe final step that turns a passed bill into law. The page notes that this is what made the cheaper child care changes legally effective. completed the legislative process so the cheaper child care changes could be implemented.
Parliamentary timeline ↗
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10 July 2023
Higher Child Care SubsidyAn extra subsidy rate for families with more than one child aged five or under in care. The bill keeps this stronger support for the second and younger children. rates begin
From this date families earning up to $80,000 could receive a 90 per cent subsidy, with lower rates tapering for higher incomes and extra support retained for second and younger children in care.
Australian Parliament House ↗