Media Releases

01 Dec 2009 - Government investment in child care affordability hits $13 billion

THE HON KATE ELLIS MP
MINISTER FOR EARLY CHILDHOOD EDUCATION
CHILD CARE AND YOUTH
MEDIA RELEASE
Tuesday, 1 December 2009
Government investment in child care affordability hits $13 billion
The Australian Government will invest more than $13 billion in child care assistance
over the next four years to help Australian families pay for child care.
The figure is revealed in the additional portfolio statements of the Mid Year Economic
and Fiscal Outlook and shows the Rudd Government is delivering almost $6 billion
more over four years than the Howard Government mustered in its final four years.
The Minister for Early Childhood Education and Child Care Kate Ellis said that the boost
is a result of the Rudd Government's election promise to increase the Child Care
Rebate from 30% to 50% of parent's out-of-pocket costs.
"ABS statistics show that the cost of child care to parents fell by over 20% because of
the delivery of this important election commitment," Ms Ellis said.
Ms Ellis said that more than 500 000 families received $300 million in Child Care
Rebates in the first quarter of this financial year.
"By boosting help to families and changing the Child Care Rebate from an annual to a
quarterly payment, we're ensuring child care is affordable for Australian parents."
Ms Ellis said that from July 2008, the Government has delivered more support to
working families by:
" increasing the rate of the non-income tested Child Care Rebate from 30% to 50%
" increasing the cap on out-of-pocket expenses to $7500; and
" further increasing the cap to $7778 from July 2009.
"We know that the first five years of a child's life shapes their future  in terms of their
health, learning and social development  and we want to make that future bright.
"That's why we're going halves with parents to cover their out-of-pocket costs and
ensure that all Australian children can benefit from affordable early education and care.
"We're now working with the States and Territories to achieve lower staff-to-child ratios,
higher qualifications for workers, tougher quality standards for services and a rating
system so that parents can make informed choices about where they send their kids."
The National Quality Agenda will be on the agenda at the COAG meeting next week.
Further information is available at mychild.gov.au or by calling 1300 363 079.
Press Secretary: Jayne Stinson 0458 547 512 jayne.stinson@deewr.gov.au