“More flexibility”: How changes to childcare subsidies could boost access and bring more centres to Melbourne’s east

As childcare centres and parents across Melbourne’s eastern suburbs make the leap to the new Three Day Guarantee for the Child Care Subsidy, Menzies MP Gabriel Ng says he hopes the reforms will fill gaps in “more patchy” areas of his electorate.

❓What’s happened: Approved last February and delivered via an investment of $430 million over four years, the Three Day Guarantee gives families which earn under $533,280 per year access to six fully subsidised days – or 72 hours – of child care per fortnight. 

• The Federal Government has capped fee growth at 4.2 percent until August 7.

💰 What is the Child Care Subsidy? The Federal Government pays the Child Care Subsidy – a portion of childcare fees – directly to your chosen provider, with parents then only required to cover the remaining balance between the subsidy and the provider’s fee.

• Previously, the amount received was calculated via the “Activity Test”, which was based on the number of hours you and your partner worked.

💲 Here is the current situation with costs: The average hourly cost for childcare services in Victoria over the September quarter was $14.45. This was before receiving any subsidies.

• The average amount of hours per child for centre-based daycare in Victoria during the September quarter was 34.4 hours.

🪙 Cost concerns: Menzies MP Gabriel Ng said he had heard from constituents that the cost of childcare has posed a “real barrier” to access in the past.

• 🗣️“The previous Activity Test punished families for circumstances often beyond their control, was inflexible and excluded children who stand to benefit most from early learning,” Ng told the Eastern Melburnian. “Beyond cost of living support, this measure also provides more flexibility for working parents.”

📈 Improvements to be made: Ng said feedback from locals on the level of access to childcare services in Menzies was that it was “reasonable”, but some pockets were “more patchy” than others.

• 🗣️“This is also an evolving sector and the certainty that this reform brings should help ensure that those gaps in the market are filled,” said Ng.

📣 Broader reactions: Early Childhood Education Minister and Victorian Senator Jess Walsh said she was “so proud” to lead the reform.

• 🗣️ “Too many children have been locked out of quality early education and care because of their parents’ work or study activity,” said Walsh.