Federal childcare subsidy changes delivering savings for Queensland families

Queensland families using full-time childcare are saving between $4,200 and $9,500 per year under the federal government's increased childcare subsidy rates, which took full effect from last July and reduced out-of-pocket costs for the majority of Australian families using approved early childhood education and care services.

Australian Bureau of Statistics household expenditure data shows childcare cost burdens for Queensland families declined 18 per cent in real terms in the 12 months following the subsidy increase, with the greatest relative benefit flowing to families with two or more children in care simultaneously and families earning between $100,000 and $200,000 — the group that had previously received a relatively low subsidy rate but were still exposed to the full cost of care.

Federal Minister for Early Childhood Education Anne Aly said the subsidy increase was already demonstrating its intended effect of removing a barrier to parental workforce participation, with female labour force participation in Queensland rising to its highest level on record in the months following the policy change. "When childcare is more affordable, more parents — particularly mothers — can work. That's better for families and better for the economy," she said.

The Queensland Early Childhood Education and Care sector reported increased enrolments following the subsidy increase, as families who had previously managed informal childcare arrangements to avoid costs shifted to formal approved care. Several Brisbane childcare operators reported waiting lists of 60 to 90 children as demand outpaced capacity growth.

The federal government is currently reviewing the childcare subsidy schedule and is expected to release updated settings in the next budget that extend the higher subsidy rates to additional hours of care.

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