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Australian Government Coat of Arms

Budget | 2015-16

Budget 2015-16
Australian Government Coat of Arms, Budget 2015-16

A brighter future for Australian families

Providing more generous assistance for hard working families

Supporting Australian families

The future prosperity of working families depends on Australia responding to the changing demographics of our population and the economic challenges we all face.

The Government is delivering a $4.4 billion Families Package to give parents more choice and opportunity to work.

Child care will be reformed to make the system simpler, more affordable, accessible and flexible - supporting workforce participation and providing quality early learning.

This will provide opportunity and build a strong and more prosperous future.

Child Care Subsidy

Recognising that Government funding of child care plays a vital role in helping people get into work and stay in work, the Government will invest an additional $3.5 billion over 5 years on child care assistance, including a new Child Care Subsidy.

The simplified Child Care Subsidy will be implemented from 1 July 2017 with a single subsidy based on family income.

The Child Care Subsidy will provide assistance to meet the cost of child care for parents who are working, looking for work, training, studying or undertaking any other recognised activity such as volunteering.

Families earning around $65,000 or less will recieve a subsidy of 85 per cent of their child care fees (up to an hourly fee cap). There will be no annual cap for families earning around $185,000 or less.

Eligibility for the Child Care Subsidy will be determined by an activity test that closely aligns the hours of subsidised care with the amount of work, training, study or any other recognised activity such as volunteering by parents.

An additional $3.5 billion to make child care more affordable
The column chart shows an additional $3.5 billion in child care funding spread over the forward estimates.