Cheaper child care for families next year

Families will have access to cheaper child care next year as the federal government officially lifts its subsidy.

But Education Minister Jason Clare says it's "just the start" of the government's commitment to improving outcomes for Australian children. 

The new childcare law passed the House of Representatives on Wednesday after the Senate agreed to amendments on Tuesday night. 

It delivers on the Labor government's election promise to help families with the cost of living and boost productivity by making childcare more accessible.

Mr Clare said before the subsidy came into place two inquiries would look at childcare costs and accessibility across Australia.

The competition watchdog will begin its price inquiry in January while the Productivity Commission will have a broader look at a range of issues in the childcare sector.

Mr Clare said this would make sure equality and equity would be at the heart of the childcare system.

"Just like we've got universal Medicare ... just like we've got universal superannuation ... we need a universal early education system that gives all children the early education that they deserve," he told reporters in Canberra.

"(To) make sure that all Australian children, whether they're black or white, get the early education that they deserve."

Prime Minister Anthony Albanese said the reforms were not about welfare but rather helping the economy and female workers in particular. 

"On election night I spoke about the great mission of Labor governments (to) widen further the doors of opportunity for more Australians and that is precisely what this legislation is aimed at doing," he told parliament. 

"There's more to do, but this is a great start ... the Australian people voted for change and today they have it."

From July next year, families earning up to $80,000 will receive a 90 per cent childcare subsidy which will decrease by one per cent for every additional $5000 of income before ending for those earning $350,000.

A further subsidy will also be in place for second children and those under the age of five and Indigenous children will receive 36 hours of subsidised care each fortnight.

Childcare centres will also have more reporting requirements in a bid to reduce fraud.

Early Childhood Education Minister Anne Aly said around 1.2 million families are set to benefit when the measure kicks into force next year.

"It's a good day for families and a good day for women and children right across Australia," she said.