Promise check: Increase child care subsidy rates

Promise check: Increase child care subsidy rates

Before the election, Labor promised to increase child care subsidies for all families earning up to $530,000, as well as extend the increased subsidies to outside school hours care. Here's how the promise is tracking.

Toddler girl playing with wooden blocks

Before the election, Labor promised to increase child care subsidies for all families earning up to $530,000, as well as extend the increased subsidies to outside school hours care.

In a March 2022 media release, then opposition leader Anthony Albanese, alongside Amanda Rishworth (then shadow minister for early childhood education), announced Labor would "deliver cheaper child care to almost every family in the system".

A detailed policy document on Labor's website outlined the plan, which would "lift the maximum child care subsidy rate to 90 per cent for families for the first child in care".

Additionally, rates would be lifted for every family with one child in care earning less than $530,000 in household income, and higher subsidy rates for second and additional children in care would be kept.

The subsidy increases would also be extended to outside school hours care, according to the policy document.

A table included in the document shows how for families earning up to $75,000 the child care subsidy would reach 90 per cent. The media release sets this maximum threshold at a more generous $80,000 per family.

This subsidy would then taper down as income increases, cutting out at $530,000.

According to a policy costings document, the plan would cost the government $1.8 billion per year by 2025-26.

Assessing the promise

This promise will be considered delivered when increased childcare subsidy rates are paid.

Here's how the promise is tracking:

19 May 2023

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19 May 2023

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