Aussie government cuts $50 million in childcare costs, leaving childcare costs rising faster than the cost of the economy

Aussie Prime Minister Scott Morrison has announced he will slash the state’s childcare subsidy from $50 to $25 per week, leaving many families with $200 or more of childcare costs to deal with each week.

The move comes after the federal government announced a $50 billion childcare budget for the coming decade, and the latest round of changes to the program come just months after the Abbott government was elected with a pledge to spend the budget on childcare.

Mr Morrison announced the change in the Budget, saying it would ensure a better system for families with children.

“This Government is determined to ensure a high quality, affordable childcare system for all Australians,” he said.

While the $50 per week figure is significantly less than the $100 per week subsidy that currently exists, it still comes with the added cost of extra childcare support, which many families are forced to make up with their own savings.

Under the new plan, childcare costs will also increase for families who live in regional and remote areas, who are more likely to have access to free childcare facilities, or who are eligible for a supplement to their childcare support.

A further $25 million will be spent on childcare support for children who attend special schools, and will also help parents get their child into an appropriate preschool.

In a statement on the Budget announcement, Mr Morrison said the changes would help ensure a more “frugal” childcare system.

More: The new childcare funding will be used to support more childcare services, including early childhood education, and to provide extra support to parents with special needs.

It will also provide funding to parents of children with disabilities to help them access and maintain free and low cost childcare.

Read more about childcare from the ABC.


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