Data confirms child care fees crippling Australian families

Wednesday, 14 October 2020

The Morrison Government’s own data has confirmed Australian families are paying more and more in child care fees.

The Department of Education’s most recent data (March 2020) shows child care fees jumped by 4.5 per cent over the previous 12 months, while CPI for the same period only rose 2.2 per cent.

These figures show the Child Care Subsidy support, which is indexed to the CPI, is failing to keep up with out of control fee increases.

Child care fees have now soared by 35.9 per cent since the election of the Liberal Government in 2013.

It is these large fee increases that the Morrison Government gave the green light to at the end of September. As a result families will likely again be hit by soaring fee increases – this time in the middle of a recession.

This data confirms urgent action must be taken to provide relief for Australian families who are being crippled by soaring child care fees.

Last week Labor announced that an Albanese Labor Government will introduce the Working Family Childcare Boost to cut child care fees and put more money into the pockets of working families, straight away.

Child care fees in Australia are some of the highest in the world. Under this plan, Labor 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.

This means 97 per cent of all families in the system will save between $600 to $2,900 a year. No family will be worse off.

Importantly, Labor will keep working to fix Australia’s broken child care system, which currently locks out more than 100,000 families because they just can’t afford it.

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

The ACCC will design a price regulation mechanism to shed light on costs and fees and drive them down for good. The ACCC will examine the relationship between funding, fees, profits and educators’ salaries.

Scott Morrison’s child care system has failed Australian families. It has failed to keep a lid on out of pocket costs, and it has failed to support working parents, particularly women, to work full time or increase their hours.

Labor will fix that.

More News

Tuesday, 13 October 2020
Affordable child care is the forgotten part of leading us out of a recession
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4CA Breakfast – Labor’s Working Family Child Care Boost
Monday, 12 October 2020
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