Several changes in the childcare industry were announced during the unveiling of the budget by Treasurer Josh Frydenberg on May 11.
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The childcare industry is set to receive an extra $1.7 billion boost over the next three years.
The changes in the childcare industry would mean an increase in the affordability of childcare for low and middle-income earning families.
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For families who have one child in childcare, the subsidy will be 65 per cent. However, for those with two or more kids, it will be 95 per cent for the second and subsequent child.
The news has received a mixed reaction from childcare centres in the region.
Kelly Boydell, the proprietor of Imaginations Early Education and Lilac Early Learning in Goulburn, said that additional funding, particularly the increase in the childcare subsidy to 95 per cent for the second and subsequent child in care, will benefit a number of families.
"This will make childcare more affordable and provide more choices for parents wishing to increase their working hours," she said.
"While I would like to have seen fewer restrictions so that families with one child in care also received additional support and an earlier implementation date than July 2022, it is certainly a step in the right direction."
Meanwhile, the government believes the new changes will encourage women to join the workforce. It will also help in adding up to 300,000 hours of work per week to the Australian economy, an equivalent of around 40,000 individuals working an extra day per week.
The budget further states that the change is expected to boost the level of GDP by up to $1.5 billion per year, with 250,000 Australian families expected to benefit.
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