YOUNG FAMILIES’ COST OF LIVING UP 27% SINCE 2021 AS CHILDCARE COSTS SOAR
9 December 2024 – Young families are bearing the brunt of the cost-of-living crisis, with new research showing expenses for families with a child under five are 27 per cent higher than in 2021.
Soaring childcare costs are a huge contributor, with families commonly paying around $50-out-of-pocket per child, per day.
Jay Weatherill from Minderoo Foundation’s Thrive by Five campaign says this is further proof of the need for serious reform, including the $10-a-day out-of-pocket childcare fee cap the government is reportedly considering as an election promise.
Under such a model, a family paying $50 out-of-pocket per day with a child attending three days a week could save $120 a week, or $6,240 a year.
“Working parents continue to struggle financially while inflation starts to ease for other demographics,” said Mr Weatherill.
“This research is yet more evidence of the ineffectiveness of Australia’s current childcare model and the Child Care Subsidy.
“It’s clearly not working, because every time the government raises the subsidy, providers raise their fees and families see little to no savings. Families with young children need it now.”
The research comes just a month after childcare was identified as the third fastest growing cost in the Consumer Price Index, following insurance and tobacco. The cost of childcare increased a whopping 10.7 per cent in the 12 months to September.
This is despite increased government spending on the childcare subsidy in July 2023, which has been largely cancelled out by subsequent fee hikes.
Polling by Essential in October found 71 per cent of parents would prefer a fixed-fee childcare model, in which fees were capped at $10 per day.
“The Albanese Government has demonstrated their interest in a fixed-fee model. With the election just months out, all sides of politics must commit to reforming the childcare system if they’re serious about financially supporting families,” said Mr Weatherill.
Read the report: All they want for Christmas: Families with children hit the hardest by cost-of-living pressures
