Cheaper child care

In May 2022, the Australian Government committed to a range of measures for the early childhood sector.*

On this page:

Changes to Child Care Subsidy

The Australian Government committed to:

  • lifting the maximum Child Care Subsidy (CCS) rate to 90% for families earning $80,000 or less
  • increasing CCS rates for around 96% of families with a child currently in care earning under $530,000
  • keeping higher CCS rates for families with two or more children aged 5 years or under in care.

These changes to CCS will take effect from July 2023.*

* Subject to the passage of legislation.

Productivity Commission review

The Productivity Commission will conduct a comprehensive review of the child care sector. This will include consideration of a universal 90% child care subsidy rate.

Transparency measures

The following measures are designed to improve transparency of child care costs:

  • requiring larger child care providers to publicly report their child care revenue and profit results
  • ensuring that StartingBlocks.gov.au includes
    • every approved provider
    • real-time child care fee data and quality ratings
    • average year on year fee increases.
  • stopping providers from offering non-educational enrolment inducements. 

StartingBlocks.gov.au is a free national website that helps parents choose the best education and care for their children. It’s the only place to find information about approved early childhood services.

Australian Competition and Consumer Commission Price inquiry

The Australian Government has committed to investigating pricing in the child care sector.

The Australian Competition and Consumer Commission will lead this work.

Early Years Strategy

The Early Years Strategy will create a whole-of-government approach to the early years. It will set out the Government’s vision for the future of Australia’s children and their families.

The strategy will examine programs and funding delivered by the Australian Government that impact early childhood development. It will identify ways to:

  • reduce program and funding silos across departments
  • better integrate and coordinate functions and activities across government
  • deliver better outcomes for young Australians and their families.

The Minister for Social Services, the Hon Amanda Rishworth MP, and Minister for Early Childhood Education, the Hon Anne Aly MP, will jointly lead the development of the strategy.