Child care subsidy: Families urged to sign up to new government system

Families using child care will be hundreds of dollars better off under the Turnbull government's revamped fee scheme but Education Minister Simon Birmingham has again issued a reminder this transition isn't automatic.

From July 2, family budgets will be $1333 better off a year for the average child under the new child care fees rebate structure, or $2666 for two children.

Senator Birmingham said sweeping reforms are set to put more money back in the pockets of working Australians.

"Child care fee relief for many families is just three weeks away, with more than 800,000 Australian families already making the switchover to the new system," the minister said in a statement on Monday.

"While many families are set to be hundreds if not thousands of dollars a year better off, transitioning to the new system isn't automatic and families need to make the switch to the new system through myGov."

He urged parents not to delay and to update their details.

The changes include rebates targeted towards families working, looking for work, studying or volunteering.

Means-tested rebates would also see low-income earners receiving up to an 85 per cent subsidy for their child care costs compared with 72 per cent previously.

It is estimated around 230,000 families will increase their workforce participation, Senator Birmingham said.

HOW AVERAGE AUSTRALIAN FAMILIES WILL BENEFIT

* A family on $50,000 - both parent/s working, with two children aged under 6 in long day care two days a week at $100 a day will be around $2,000 better off a year.

* A family on $80,000 - both parent/s working, with two children aged under 6 in long day care three days a week at $100 a day will be over $3,000 better off a year.

* A family on $150,000 - both parent/s working, with two children aged 6 and under in long day care three days a week at $100 a day will be more than $1000 better off a year.

Australian Associated Press