Will YOUR Childcare Benefits Be Cut?

Canberra gives the thumbs up to reforms

Will YOUR Childcare Benefits Be Cut?

Aussie pollies sat in Parliament until midnight on Thursday night, finally reaching an agreement on the $1.6B child care package.

From July 2, 2018 a family earning less than $65,000 a year will only have to pay 15 per cent of their kids' fees, with taxpayers to foot the rest of the bill.

So basically, the big change is that the rebate has been boosted for those on a low income, from 50 per cent to 85 per cent.

While those on the higher end of the income spectrum will have their welfare benefits cut off, if the family brings in $350,000 or more.

The means-and-activity tested subsidy, which requires both parents to work, study, volunteer, or search for work for at least eight hours a fortnight, tapers down to 20 per cent rebate for those earning $340,000.

Education Minister Simon Birmingham says, "hard-working Australian families should be swinging from the rafters."

But the Greens have been quick to trash the reforms, describing the move as a "kick in the guts" for vulnerable children.

"Unless both your parents are working... you're not as valuable to this government," Senator Sarah-Hanson Young said.