From December 10, 2021, the $10,655 annual child care subsidy cap will be scrapped providing more support for local families.

Federal Member for Hinkler Keith Pitt said the measure will be applied retrospectively for the whole 2021-22 financial year.

“This means families who have already hit the cap will receive a refund on any excess fees paid,” he said.

Families in Hinkler will also benefit from the increased Child Care Subsidy (CCS) for multiple children brought forward to 7 March 2022, four months earlier than first expected.

“We know childcare costs can really add up when you have two, three or more children in care and this package will help those families by significantly reducing out-of-pocket costs for the second child and younger children,” he said.

The increased subsidies were due to come into effect on 11 July 2022, but the Government has been able to work with Commonwealth agencies and service providers to make necessary technical changes sooner.

From 7 March 2022, families with two or more children aged five years and under in care will have their CCS rate increased by 30 percentage points for their second child and younger children, up to a maximum rate of 95 per cent. More than half of eligible Australian families will receive the maximum 95 per cent subsidy.

“This will make a real difference in the lives of local families. There are around 1,260 families in Hinkler that have two or more children in care and could benefit from the increased subsidy.

“The changes will also see this government’s total investment in child care grow to $11 billion a year to build on the Child Care Package we introduced in 2018 that is still keeping out-of-pocket costs low.”