The Federal Government's cheaper child care laws have passed through parliament! Use the KindiCare subsidy calculator to work out  what you’ll be paying from 1 July 2023.

Cheaper child care is on the way for the vast majority of Australian families this week, with the government’s key election pledge successfully clearing its biggest hurdle.

With prices rising on just about everything right now, this news will bring a sigh of relief for more than a million families who rely on early education and care services.

The new child care rules passed through the Senate and the House of Representatives earlier this week and mean that from 1 July next year the child care subsidy (CCS) for families earning $80,000 or less will increase to 90 percent.

Families earning more than $80,000 will receive a CCS rate that decreases by one percentage point for each additional $5,000 of family income until it reaches zero per cent for families earning $530,000

There will also be higher CCS rates for second and additional kids and First Nations families will have access to a minimum of 36 hours of subsidised care per fortnight.

You can use KindiCare’s Child Care Subsidy Calculator to estimate how much subsidy your family will be eligible to receive once the change takes effect next year and how this compares to the current subsidy based on your family's own household income and activity information.  

Education Minister Jason Clare said the passage of this legislation is good for children, good for families and good for the economy.

“If you cut the cost of early education and care, it makes it easier for parents to return to paid work and, in particular, mums…this means more skilled workers back in the workforce…” he said. 

Before the subsidy takes effect two investigations will examine the price and accessibility of early education and care services.

Minister Clare said this would ensure equality and equity are at the heart of the Australian child care system. 

“Just like we’ve got universal Medicare … just like we’ve got universal superannuation … we need a universal early education system that gives all children the early education that they deserve,” he said at a press conference in Canberra.