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AAP
AAP
Politics
Paul Osborne

Watchdog to ensure childcare subsidies flow through

Parents have been assured the ACCC will keep a close eye on childcare fees as the subsidy increases. (Dean Lewins/AAP PHOTOS) (AAP)

Parents have been assured the consumer watchdog will be keeping a close eye on childcare fees as the subsidy increases.

Among the changes in government policies starting on July 1 is an increase in the childcare subsidy, which is expected to ease costs for 1.2 million families and ensure greater workforce participation.

For a family earning $120,000 with one child in care, their childcare costs will be about $1700 a year less than they otherwise would be.

The Australian Competition and Consumer Commission was directed in October to inquire into childcare services.

An interim report is scheduled to be handed to Treasurer Jim Chalmers on Friday.

But the ACCC said it would be getting price and cost information from a sample of childcare providers soon after the new policy kicks in.

The watchdog plans to hold follow-up talks with stakeholders in August and release its final report in December.

Also from July 1, the parental leave pay and dad and partner pay programs will combine into a single, 20-week scheme, benefiting 180,000 families a year.

Aged-care workers will also receive an interim 15 per cent pay rise, meaning nurses can earn an extra $10,000 a year on the award wage, and some personal care workers can earn an extra $7000 a year.

"We know it's a tough time for many, which is why from tomorrow a range of help kicks in to provide targeted cost-of-living relief that will make a real difference, without adding pressure on inflation," Prime Minister Anthony Albanese said.

"This includes childcare subsidies for over 1.2 million families, expanding paid parental leave, and funding a pay rise for our aged-care workers, the heroes of the pandemic."

On housing, the government is expanding eligibility for the home guarantee scheme and making 50,000 new places available.

And the National Housing Finance and Investment Corporation's liability cap will receive a $2 billion boost, to support more lending to community housing providers for social and affordable housing projects.

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