Childcare Market In Australia – Government Funding

  • From July 2018, the Child Care Subsidy will replace the Child Care Benefit and the Child Care Rebate with a single, means-tested payment to better support families with access to affordable childcare
  • Increased funding of $3.5 billion to be committed by the Government to the industry over the next 4 years, with the majority of the funding increase to be available from July 2018
  • This funding will increase, with projected government expenditure by 2021-22 of $11.1 billion
  • Out of pocket costs are expected to fall, particularly for families on incomes below $120,000 per annum
  • This is expected to drive the female workforce participation rate which will positively contribute to Australia’s economic growth
  • Modelling completed by PwC in 2016 project long term net savings to Government of $4.7 billion by 20501

Each year, the Productivity Commission publishes the annual Report on Government Services (RoGS) which provides information on the equity, effectiveness and efficiency of government services in Australia. The most recent report was progressively released between 27 January and 4 February 2016. Please click here for the for the Child Care, Education and Training section which reports on the performance of early childhood education and care (ECEC) services, which comprised child care and preschool services. ECEC services aim to meet the care, educational and developmental needs of children.

Slide1: Source – Department of Education and Training Administrative Data
Slide2: Source – MyChild
1. Economic impacts of the proposed Child Care Subsidy, PWC, February 2016

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