This paper provides results of modelling of the distributional impacts of Labor's proposed child care policy and the Coalition's recently legislated child care policy. Both policies are compared to the previous child care subsidy policy.

The research finds that both policies provide families with more generous child care subsidies but Labor's subsidy increase is more substantial and more broadly applied with almost all households who use formal child care benefiting. Both new policies are more generous to higher income child care families and the Labor policy particularly so.