Child care boost eases out-of-pocket costs

Around 250,000 families will benefit from the increase to the child care subsidy and will save $2260 a year, Education Minister Stuart Robert said.

He said a family earning $120,000 a year with two children in care five days a week will save $144 per week compared to current settings. 

The subsidy increase was set to take effect from July 1 but was brought forward to March 7.

The CCS was first introduced in 2018 as a means-tested subsidy to ensure families who earn the least have the most support. 

Social Services Minister Anne Ruston said the subsidy increase will support low and middle income families. 

"Today's changes in relation to child care are very focused, making sure families in Australia who have large out-of-pocket expenses, those that are low and middle-income income earners ... will be the families that are targeted by these changes," she told ABC radio on Monday. 

Families will not need to apply for the increased subsidy as Services Australia will automatically authorise the additional funds to flow to eligible households.