Earlier this month, the government agreed to extend the wage subsidy for another two years, but with an increased fee cap of 5.8 per cent. The cap is calculated based on the expected costs of providing care, which are expected to rise after a national crackdown on safety standards following a slew of revelations of child sexual abuse by childcare workers. Advocates are warning many parents’ budgets are at breaking point, even as the government guarantees three days of subsidised care for every child. Childcare
is one of the fastest-growing imposts on the budget, with the subsidy costing almost $16 billion a year. The latest data from the Australian Bureau of Statistics revealed childcare costs rose 9.4 per cent in the past year – more than double the rate of headline inflation. Childcare costs vary across Australia, while access to the subsidy depends on a family’s income. Based on average fees in NSW, a family earning $120,000 a year putting one child in care three days a week can expect
to pay up to an extra $211 per year, based on the government’s subsidy calculator. Fees for a family earning $270,000 could grow up to $497 annually.
childcare fee caps, wage subsidy, 5.8 per cent, Australia, safety standards crackdown, child sexual abuse revelations, Australian Bureau of Statistics, childcare costs, subsidised care, NSW fees, household budgets
So they’re raising the fee cap 5.8% but acting like it’s for safety? ok.
I saw something about “crackdown on safety standards” and then the costs go up again… makes sense 🙄. My budget is already wrecked and now it’s extra fees on top.
Wait so the government guarantees 3 days subsidised for every kid but parents still pay hundreds more? Like isn’t that contradictory. Also 5.8 per cent cap sounds small but if it’s based on “expected costs” then who knows what they’ll jack it to later.
Childcare rising 9.4%??? That’s literally inflation on steroids. And they’re blaming the whole thing on that child sexual abuse stuff (which is awful, obviously), but I swear every time there’s a scandal they just raise prices and call it reform. $211 extra sounds fake low too, like NSW fees always creep up anyway.