Morrison’s broken child care system

Monday, 01 February 2021

Only two and a half years into the Coalition’s child care system, and the benefit has been entirely eroded for many Australian families.

The Prime Minister himself dubbed the system a “once in a generation reform” and promised it would make child care more affordable.

Yet ABS data has shown that for parents in Brisbane, Sydney and Darwin, child care is now more expensive than when the system was introduced in mid-2018.

Increase in out of pocket child care costs since 2018

Brisbane – 3.2 per cent

Sydney – 0.4 per cent

Darwin – 0.2 per cent

The benefit has also been almost entirely eroded nationally, showing the system has been a complete fizzer.

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.

The new Minister for Education needs to stop the spin and acknowledge the Coalition’s system has failed to keep a lid on out of pocket costs.

This data makes it clear – the Coalition’s child care system is broken. That is why 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 design 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.

Only Labor has a plan to fix the Coalition’s broken child care system.

More News

Thursday, 21 January 2021
Expensive child care holding working women back
Tuesday, 19 January 2021
ABC Radio Perth – child care fee increases
Monday, 11 January 2021
FiveAA Breakfast – increasing out of pocket child care costs