CHILDCARE FEE HIKES UNDERSCORE NEED FOR $10-A-DAY CAP AND A LEGAL RIGHT TO AFFORDABLE AND ACCESSIBLE EARLY CHILDHOOD EDUCATION
29 February 2024 – Recent fee increases from some of Australia’s largest childcare providers highlight the need for the Federal Government to introduce a $10-a-day out-of-pocket fee cap and legislate a universal entitlement to affordable early childhood education.
Jay Weatherill from the Minderoo Foundation’s Thrive by Five campaign said the cost-of-living crisis and childcare fee hikes were forcing families to make tough choices.
“The last thing Australian families need right now is another expense, and we are really concerned about the heartbreaking conversations parents will be having off the back of these latest childcare fee increases,” Mr Weatherill said.
“Do they keep their kids in childcare for the same number of days and cut down spending on other essentials like groceries and healthcare? Or do they cut their childcare hours and their own work hours too?
“Either option is a lose-lose, not only for families, but for the economy. It really underscores the need for the government to step in and reform a broken and confusing pricing and subsidy system.”
Last year the Federal Government fulfilled an election promise to increase childcare subsidies but some providers increased their fees, meaning the benefit did not flow to the families who need it most.
Mr Weatherill said a $10-a-day cap on out-of-pocket fees, as has recently been introduced in parts of Canada, would help create accessible and affordable childcare places in Australia.
“If parents knew they could pay no more than $10 a day for childcare, it would not only take the headache out of a bewilderingly complex subsidy system, it would mean more children from low and middle-income families would get the developmental benefits of early learning,” Mr Weatherill said.
“It would mean more parents, especially women, could get back to work when they want to – not when they can afford to. Australia’s broken childcare system is a huge contributor to the gender pay gaps that have been laid bare this week.”
Thrive by Five is campaigning for a legislated entitlement to three days of early learning per week, capped at $10 a day.
“A universal entitlement for Australia’s children is the only way we can ensure market fluctuations do not impinge upon the basic right of every child to thrive in the first five years of life.”
[1] Australian Financial Review, ‘G8 raises childcare fees as chief executive collects $3m in pay’
[2] The Parenthood, ‘Fees increased for over 90% of parents’
Media contact: Iona Salter – 0413 185 634
