How changes to the Child Care Subsidy hourly rate caps will impact families

How changes to the Child Care Subsidy hourly rate caps will impact families

Child Care Subsidy hourly rate caps increased from July 6. An RMIT expert explains what it means for families, and whether it will help with affordability. 

Dr Karen Villanueva, School of Global, Urban and Social Studies:

“For families, the rising cost of childcare is a considerable barrier to participation. Childcare costs vary across Australia, and access to the Child Care Subsidy (CCS) depends on family income. 

“The rise in Child Care Subsidy hourly rate caps and family income thresholds is generally a positive thing for families. It can help to support childcare affordability by reducing out-of-pocket costs, and higher income thresholds may mean families can earn more before their subsidy rate drops.  

“However, even with subsidies in place, out‑of‑pocket fees for many families continue to rise if changes in the CCS don’t keep up with increases in childcare fees. This is especially tough for households that are already stretched financially.  

“At the same time, providers are under pressure to absorb rising operating and quality related costs without substantially raising their fees. 

“Providing high-quality childcare is essential, but it is also crucial to remove barriers that prevent children from accessing it. It’s not just cost that matters.  

“Long waitlists, not enough local centres or places, and other physical access issues such as limited public transport, can also prevent children from participating in high-quality childcare. 

“We need to ensure that all children, especially those from the most disadvantaged families, can access quality childcare when and where they need it.” 

Dr Karen Villanueve is a Research Fellow at the RMIT University Social Equity Research Centre. 

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

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