Child care costs locking parents out of workforce

Tuesday, 02 February 2021

The Productivity Commission’s Report on Government Services 2021 has shown child care costs are locking Australian parents out of the workforce.

The data reveals almost 300,000 Australians are not in the labour force due to caring for children (an increase of 5.9 per cent to 296,100).

Notably, the numbers of parents saying they are not working “mainly due to the cost of child care” has skyrocketed by 23 per cent (91,700 parents).

This confirms that the cost of child care is prohibiting Australian parents from working the hours they want.

The data also shows the median cost of child care has soared by 5.6 per cent in a year from 2019 to 2020, to $523 a week.

With the Morrison Government itself predicting fee increases that well outstrip CPI for years to come, the hits will keep on coming for Australian families.

There is now a mountain of evidence and data proving the Coalition’s child care system has failed to keep a lid on child care costs for Australian families.

Scott Morrison and Alan Tudge need to stop burying their heads in the sand and finally acknowledge their system is broken.

Only Labor has a plan to bring down the cost of child care and keep it down. An Albanese Labor Government will introduce the Cheaper Child Care for Working Families, which will:

  • Scrap the $10,560 child care subsidy cap which often sees women losing money from an extra day’s work;
  • Lift the maximum child care subsidy rate to 90 per cent; and
  • Increase child care subsidy rates and taper them for every family earning less than $530,000.

Importantly, the ACCC will be tasked with designing a price regulation mechanism to shed light on costs and fees and drive them down for good.

The Productivity Commission will also conduct a comprehensive review of the sector with the aim of implementing a universal 90 per cent subsidy for all families.

Labor’s plan for cheaper child care will reward working families, and allow more second income earners, usually women, to work more and contribute to our economic recovery.

Labor will fix the Coalition’s broken child care system.

More News

Monday, 01 February 2021
Morrison’s broken child care system
Thursday, 21 January 2021
Expensive child care holding working women back
Tuesday, 19 January 2021
ABC Radio Perth – child care fee increases