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Changes to childcare subsidy mean families in Mitchell are better off

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Member for McEwen Rob Mitchell estimated about 6500 local families would be better off under a Federal Government childcare plan introduced last week.

The government introduced laws that aim to cut out-of-pocket costs for families with children in early education and childcare.

Childcare costs have skyrocketed, increasing by 41 per cent in the past eight years.

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Mr Mitchell said it was a big cost to families and a disincentive for parents, especially mothers, to do more paid work.

He said the new laws meant about 96 per cent of local families with children in early education and care would be better off.

Mr Mitchell said a family earning $120,000 with one child in early education and care would be more than $1700 better off annually under the legislation.

“This is good for children, good for families and good for our economy,” he said.

“Not only will this help families with cost-of-living pressures by cutting the cost of child care, it will help get thousands of skilled workers into our economy.

“This is important economic reform that the Albanese government promised to deliver at the election. Legislation introduced now will implement this promise.

“It means children get access to early education, and parents especially mums can do more paid work if they want to.”

The changes to the childcare subsidy will take effect on July 1 next year.

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