Childcare subsidies help move from poverty

The federal government hopes its overhaul of childcare fee subsidies will help lift families out of poverty after a report found 731,000 children are living below the poverty line.

"It's always very concerning to see children living in circumstances where they have no role models in the workforce, where parents are not engaged in active employment," cabinet minister Simon Birmingham told Sky News on Monday.

Government plans to increase the proportion of childcare costs it will cover for low-income families would make it easier for people to make the move from welfare to work, he said.