Four-fifths of families in the electorate of Parkes are set to benefit from childcare changes that have come into play this week, according to new departmental analysis.
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Parkes MP Mark Coulton reports the reforms will provide much-needed childcare relief for about 4420 families across the seat.
That equates to 80.7 per cent of families in the electorate, outstripping the 75.5 per cent of families NSW-wide, according to analysis provided to the Daily Liberal by the Department of Education and Training.
Education minister Simon Birmingham said while data showed the average working family would gain an extra $1300 each year per child, the new analysis highlighted families in some areas could be as much as $2792 better off annually for each child.
He said the biggest winners would be families on lower incomes as well as families working the most.
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“Nearly one million families are set to benefit from our changes and analysis shows they will mean families are hundreds, if not thousands of dollars a year better off,” he said.
Under the changes, households with an annual income under $186,958 will no longer face a cap on the rebate paid each year.
But both parents must be working, studying, volunteering or searching for work at least eight hours a fortnight to be eligible.
These reforms will mean more subsidies for families working the most.
- Parkes MP Mark Coulton
Mr Coulton said the old system restricted the ability to work flexibly.
“These reforms will mean more subsidies for families working the most,” he said.
“For families earning the least, the reforms involve removing the annual rebate cap for most families, and an hourly rate cap to keep downward pressure on fees.”
The government reports more than one million families have switched over to the new system, with less than 50,000 still to do so.
Mr Coulton urged any families who missed the Monday deadline to update their details online. There is a three-month grace period, so if families switch, they will be back-paid.
“I’m pleased that under these reforms, many families across the Parkes electorate will notice a significant difference in their annual finances,” Mr Coulton said.
Labor claims one in four families nationally will actually be worse off under the changes because they won't meet the eight hours a fortnight activity requirement.
Opposition early childcare education spokeswoman Amanda Rishworth argued this would cost families earning less than $65,710 an average of $5300 to replace the care they would lose.
"This unfair new system will hurt many vulnerable and low income families," she said.
The New Childcare Rebate
* The old yearly cap on childcare rebates is scrapped, along with the means- tested Child Care Benefit
* Replaced with one rebate with no yearly cap
* It means parents can pick up an extra shift without worrying all their pay will go to covering childcare
* Households earning more than $187,000 a year will have a $10,000 cap
* Families earning more than $350,000 get no subsidies
* To be eligible, parents need to work, study or volunteer at least eight hours a fortnight
* Government says the majority of families will be better off but Labor says some families on low incomes will miss out due to the activity test
* Childcare providers who hike fees will be held to account
* New system started on Monday