The government certainly are struggling to find savings to fund the proposed new childcare package.
The article you quote is mainly about FTB (B).
There has been no indication from the government, which areas, if any, of the proposed childcare funding reforms will be affected , by not achieving the required savings.
Sadly the government of Australia view childcare as a tool that allows parents to work. It should be viewed as an investment in the future of Australia and access to quality early childhood environments should be the right of every child.
Grandparents Possible Competitors For Childcare Subsidies, page-31
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