More than 95 per cent of Australian families will benefit from the Albanese government’s childcare reforms, according to Education Minister Jason Clare.
The Labor frontbencher will introduce the legislation to parliament later today.
The bill is expected to slash out-of-pocket costs for 1.26 million families with children in care.
“The vast majority of this is designed to help people on lower incomes, particularly mums, to get back into paid work after they’ve had a child,” Clare told Seven’s breakfast show Sunrise.
The changes will come into effect from July next year, lifting the maximum childcare subsidy rate to 90 per cent for the first child in care.
Households with a combined income of $75,000 will get a 90 per cent subsidy, while those earning $500,000 a year will receive a seven per cent discount.
Families with a total income of $530,000 will not be eligible for any subsidy.
The government’s pledge to reform childcare was a key election campaign promise.
Clare said Treasury estimated the reform would boost the workforce by the equivalent of up to 37,000 skilled workers through increased participation.
“Lots of businesses are screaming out for skilled workers … so if we can cut the cost of childcare, it will mean that a lot of skilled workers will be back in the workforce,” he said.
“That’s why this is a big, important policy.
“It’ll mean that more than one million Australian families will have the cost of their childcare cut.”
Some have called for the subsidy to be brought forward. But Labor says doing that would be too expensive.