Out-of-pocket costs reduced for Redland families with multiple kids in child care

Out-of-pocket costs reduced for Redland families with multiple kids in child care

Liberal National Party candidate for Bowman, Henry Pike, has welcomed a significant increase in the rate of Child Care Subsidy (CCS) for local Redland families with multiple children in child care.

The Federal Government has lifted the rate of CCS by 30 per cent for the second child aged five or under and any younger children in child care, up to a maximum rate of 95 per cent.

‘These measures will ease the cost of child care for about 1,100 families Redland families who on average will be around $2,260 a year better off,” Mr Pike said.

“For a family who are charged a typical fee and earns $120,000 a year with two children in child care for five days per week, the saving will be $144 per week compared to current settings.”

“Families do not have to do anything to receive the increased subsidy - it will flow to families automatically through the child care service, with no need to apply to Services Australia.”

The higher subsidy will boost support for working families and follows the removal of the annual CCS cap of $10,655 for families earning over $190,015 (in 2021-22 terms) from 10 December 2021 – and beyond.

The Federal Government fast-tracked the increased subsidy, bringing it forward from 1 July 2022 to 7 March.

Mr Pike said that the measures would make a significant contribution to easing the pressure on the cost of living for many families with young children.

“Local families will have more money in their pocket each week, and it will provide a new incentive for locals to consider either returning to work or working additional hours.”

“The cost of childcare can often be a barrier to pursuing employment, and the Federal Government is focused on trying to continue to

‘This is especially so for local mums who may be able to use this to get back into the workforce or to increase their hours in their current job.’


Table: What increased CCS means for families with two children in child care five days a week

Family income

Previous out-of-pocket child care cost per week

Current subsidy (standard
CCS rate)

New 2nd child subsidy

out-of-pocket child care cost per week

Total better off per week