Media Release by Senator the Hon Amanda Vanstone

Increases to Child Care Benefit a Boost for Families

Minister for Family and Community Services, Senator Amanda Vanstone, today announced significant increases to the Commonwealth Child Care Benefit [CCB] for families, as a result of indexation increases from July 1 this year.

“Low income families will pay up to $7.00 a week less from July 1 for full-time child care, while families using part-time child care will also receive a saving,” Senator Vanstone said.

“From July, Child Care Benefit will be indexed in line with increases in the Consumer Price Index, based on the December quarter, which is 5.8%. This is a significant increase in Benefit for Australian families.

“The new Child Care Benefit, operating from July last year, has made child care more affordable for low and middle-income families. This latest increase provides even greater benefit for families.

“The maximum assistance for families using full-time care will increase from July 1, 2001 from $122.00 to $129.00 for one child based on 50 hours of care, from $255.00 to $269.64 for two children and from $398.00 to $420.86 per week for three children.

“This CPI increase means an additional $180million will be added to Child Care Benefit over the next four years, on top of the record $5.6billion already committed during this period for child care payments [2001-02 to 2004-05].

“These measures are making child care more accessible for Australian families, with a record 680,000 children in care – a figure expected to increase further as a consequence of additional assistance provided to families.”