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Morrison government announces $1.7bn childcare package in federal budget

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childcare package

Have you heard about the Morrison’s Government pledge of $1.7 billion to the childcare sector? If you’re wondering who this proposed childcare package affects and how much you can expect to save, here’s some information to help you out!


Under the new budget proposal that will be included in the Federal Government’s budget next week, caps on childcare subsidies will be removed, while subsidies for families with two or more children will increase to a maximum 95%. The goal is to boost female participation in the workplace.

According to The Treasurer, Josh Frydenberg, “We are ensuring that around 250, 000 families will better off as a result of this package. These measures today are very much focused on making our economy stronger.”

Caps on childcare subsidies

Childcare subsidies are currently capped at $10,560. This means that households that are earning more than $189,390 pay the full childcare rate after this cap has been reached. The new policy will remove this cap.

Subsidy boost

The subsidy boost in this proposed childcare package is for families with two or more children (under the age of 5) currently in childcare. The maximum will increase to 95% for the second child in care.

So, how exactly does this new subsidy work?

If you already have one child in care who is eligible for a 65% subsidy, then have a second child who is also in care, then this second child can increase their eligible rate to 95%.

This childcare package is set to be addressed in the Federal Government’s budget next week, however they won’t be introduced until 2022.


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