From 7 March 2022, around 250,000 Australian families will receive the increase to the CCS, making them on average more than $2,200 a year better off.
The March date is some four months earlier than original July deadline, following faster than expected technical changes across government departments.
The additional subsidies apply to families who have two or more children aged under five years and in care, with their CCS rate increasing by 30 percentage points for their second child, up to a maximum of 95 per cent.
More than half of eligible families will receive the maximum 95 per cent subsidy.
A family earning $110,000 a year with two kids in care, four days a week, will be better off by around $100 each week.
Alan Tudge, Minister for Education and Youth, said the fast-tracking of the subsidy increase comes at a time when the economy needs it most.
These changes are good for families and great for the economy, and it’s significant that we are able to deliver them sooner,” Minister Tudge said.
“Removing the cap and increasing subsidies means more parents, particularly mothers, can return to work or take on more hours if they choose to.
“There are 280,000 more children in child care than when we came to office and this additional support will take our total investment to $11 billion a year.
“Importantly, our support is targeted to those who need it most. We are reducing the out-of-pocket child care costs which really add up when you have two, three or more children in care.”
It’s estimated the additional subsidy will mean the equivalent of 40,000 parents are able to work an extra day per week, boosting the economy by up to $1.5 billion per year.