Originally slated to commence in July 2017, the has been pushed back to July 2018.
The reason behind the deferral, as stated in the budget, was because the Family Tax Benefit reforms required to fund the package hadn't been passed by the Senate.
A spokesperson for childcare support group, The Parenthood, said parents across Australia have been let down by the decision to deffer the package
“This is a bitterly disappointing budget,” Executive Director Jo Briskey told SBS.
“It’s really not a budget for families.”
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Budget punishes families: Shorten
Ms Briskey said the decision to delay on affordable childcare will effectively cost Australian families $1500 over the next year.
“Families are already struggling to afford the current childcare costs. They can’t afford to see ever-increasing costs for childcare," she said.
“It will mean more women are forced to fork out (money) and it makes going back to work redundant."
Australian Childcare Alliance, the peak body for privately-owned early childhood education and care services, said the assistance package had many positive attributes that could have helped families.
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Infographic: Budget 2016 at a glance
The group said it was disappointed that earlier financial support for families was not provided in the budget.
Childcare fee assistance will continue to be provided under several programs until 30 June, 2018, including the Child Care Benefit, Child Care Rebate, Education and Training Child Care Fee Assistance, Community Support Program and Budget Based Funded Program.
The Nanny Pilot Programme, which commenced this year and subsidises care provided by a nanny in a child’s home, will be extended for six months to June 30, 2018.
Ms Briskey said it was now up to Labor leader Bill Shorten to present a credible and detailed set of policies for working parents to consider.