Budget 2016: Child care groups ‘extremely disappointed’ by subsidies delay

Child care groups say families will lose $30 a week as a result of the Federal Government’s decision to delay its promised overhaul of subsidies.

The Government’s $3 billion child care package was supposed to start from July next year.

But in last night’s budget the package to streamline multiple subsidies into one means-tested payment was deferred until the middle of 2018.

That means the proposal to lift the annual $7,500 cap on child care payments to families will also be delayed.

John Cherry from the country’s largest child care provider, Goodstart Early Learning, said the decision would hurt families.

“We’re extremely disappointed that our families will need to wait another year for the Government to deliver on its promise to make child care more affordable,” Mr Cherry said.

Read more: ABC Online