Review of Basic Child Care Subsidy in Light of Increased Cost of Living

Mr Christopher de Souza asked the Minister for Social and Family Development whether the amount for the Basic Child Care Subsidy will be reviewed in light of increased cost of living.

In recent years, the Government has enhanced preschool affordability in various ways. In 2020, we raised the household income ceiling for means-tested Additional Subsidies from $7,500 to $12,000 and increased the quantum of Additional Subsidy across all eligible income tiers.

In addition, we keep fees at Government-supported preschools affordable by imposing fee caps on Anchor Operators (AOPs) and Partner Operators (POPs). In January 2023, monthly fee caps for full-day childcare at AOP and POP centres were lowered by $40 to $680 and $720 respectively. This is more effective than increasing the Basic Subsidy.