The 2023-2024 Federal Budget has brought significant changes to the childcare sector, aimed at providing greater support to families and the early childhood education and care workforce. The changes include adjustments to the childcare subsidy, combining parental leave and dad and partner pay, and increased funding for the skills development of early childhood educators.
A less confusing, more concise approach was certainly necessary.
Childcare subsidy changes
One of the major changes in the budget is the revision of the childcare subsidy. This was announced in the ‘Responsible budget’ of October 2022 and raised again as a highlight in the 2023-2024 budget statement.
The government has announced an increase in the maximum subsidy rate, which will benefit families with multiple children in care, removing the annual cap on the amount of CCS that can be paid for families with incomes above $189,390.
This will come as a relief to many parents who have struggled to afford childcare, particularly those on lower incomes.
The subsidy rate will decrease gradually for families with a combined income of up to $80,000, lifting the maximum Child Care Subsidy (CCS) rate from 85% to 90% for
families earning up to $80,000 per year.
The government has also removed the annual cap on the subsidy, which previously limited the amount of assistance families could receive each year. This has been designed to benefit families with higher early education costs and those who use childcare services for longer periods of time.
Combining parental leave and dad and partner pay
Another considerable change is the combining of parental leave and dad and partner pay into a single payment, called the Parental Leave Pay. This new payment will provide up to 26 weeks of leave at the national minimum wage, which currently sits at $772.60 gross per week. The payment will be available to both parents, who can choose to share the leave between them or take it separately.
This will provide more flexibility for families, allowing them to choose how they share care. It also aims to encourage more fathers to take parental leave, traditionally taken by mothers.
Increased skills support of the ECEC workforce
Treasurer Jim Chalmers also announced that the budget will provide increased support for the early childhood education and care (ECEC) workforce. He announced a $1.6 billion investment into the sector, which includes funding for professional development and training programs for educators.
With this investment, the government hopes to improve the quality of early childhood education and care, which we know is critical for children's development. By supporting the professional development of educators, the government hopes to attract and retain high-quality staff in the sector and promote better outcomes for children.
A win for a sector crippled by workforce shortages.
The funding will also support the implementation of the government's updated Quality Early Learning Framework, which aims to improve the consistency and quality of early childhood education and care across Australia.
Education Ministers endorsed the framework in December 2022 after an extensive consultation process stating that, “Throughout 2023, providers, services and educators can familiarise themselves with updated frameworks and begin incorporating them into program and practice. They will become mandatory in early 2024.”
The changes to childcare in the federal budget 2023-2024 aim to provide greater support to families and the early childhood education and care workforce. We’d love to hear what you have to say about the updates. Get in touch with us at editor@careforkids.com.au.
