Child care system reform: Winners and losers

The new child care legislation will be seen by parliament on Wednesday. So who will be paying more?

High income households will lose thousands of dollars in child care subsidies as part of the federal governments overhaul (see above video), but grandparents will now be supported.

Minister for Education and Training, Senator Simon Birmingham said the new Jobs for Families child care package would support an estimated 3,900 grandparents who care for 6,300 children.

Birmingham said the Turnbull Government would commit more than $20 million to exempt grandparents from the Child Care Subsidy activity test, meaning they are eligible to access up to 100 hours of approved child care fortnightly.

“A consistent message that came out of our consultations was that grandparent primary carers provide a vitally important role in our community, often stepping in to look after their grandchildren when these children have been through stressful and other adverse circumstances,”  Birmingham said.
 
“Child care provides not only additional learning opportunities to children but also valuable respite to older Australians who have stepped in to become the primary carer in their retirement years.
 
“One of the greatest practical challenges for grandparents raising grandchildren are the costs associated with that care, which includes child care," Birmingham added.