Aussie families pocket thousands in childcare savings

The federal budget, handed down on Tuesday night, confirmed landmark funding, including the $1 billion Building Early Education Fund to expand and build new services in under-served areas.

The replacement of the activity test with a three-day guarantee, which allows families to access 72 hours of subsidised childcare per fortnight regardless of parents' level of work, was also locked in.

First Nations families will have a greater entitlement of 100 hours per fortnight.

More than $2 million was set aside over two years to draft a business case for the government to own and lease childcare centres, with $500 million earmarked for future funding.

Education Minister Jason Clare said the early learning reforms also cut out-of-pocket expenses, with the average family saving $4400 per year.

"The government knows every stage of education is vital because we need to give the  next generation of Australians the best start in life and the strongest foundation for success," Mr Clare said in a statement. 

The government was "charting a path to universal early education and care, regardless of a child's background or where they live," Treasurer Jim Chalmers said in his budget speech to parliament.

Though the sweeping early education reforms have been largely embraced, lobby groups had been hoping for further funding to recognise the unique needs of rural families.

About 2.8 million regional Australians live in a childcare desert, with services some regional and remote areas declining in recent years.

Several organisations, including advocacy group The Parenthood, had called on the government to fund mobile services for rural families who may live hundreds of kilometres from their closest centre or playgroup.

The National Farmers' Federation has urged the opposition to back the government's early education fund, saying regional communities rely on childcare to keep essential services and small businesses running.