The Morrison government has snapped high childcare costs back into the federal election spotlight, with fast-tracked targeted measures designed to make childcare more affordable coming into effect.
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The major parties announced the bulk of their childcare policies last year, but the sped-up measures could well bring the cost of living and workforce participation issue back front and centre as an election issue. The ACT has the highest childcare fees in Australia.
The government in December announced it would fast-track the removal of the annual $10,655 child care subsidy cap for families with combined income of more than $190,015. It also flagged bringing forward an increase in the childcare subsidy for families with two or more children aged five and under to a maximum of 95 per cent, up from 85 per cent.
Originally announced as part of the 2021-22 Budget, the government's changes worth an extra $1.7 billion over three years were due to start on July 1 but will now commence from Monday.
The government says the changes will benefit thousands of families and boost Australian GDP by up to $1.5 billion.
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"These measures will ease the cost of childcare for about 250,000 families across Australia who on average will be $2260 a year better off. That means more money in their pocket each week,' acting Education Minister Stuart Robert declared.
"For a family who are charged a typical fee and earn $120,000 a year with two children in childcare for five days per week, the saving will be $144 per week compared to current settings."
Labor's childhood education and development spokeswoman Amanda Rishworth in December described the accelerated policy as a "dud" which left around 750,000 families behind.
The ALP has broader plans to make children more affordable. It has also pledged to scrap the $10,655 child care subsidy cap, but it also plans to lift the maximum child care subsidy rate to 90 per cent and increases child care subsidy rates for every family earning less than $530,000.
Labor says 97 per cent of families will be better off. The Labor plan is currently scheduled to begin from July if it wins the election.
The Greens, which are seeking to hold the balance of power in the next parliament, announced a $19 billion plan on Sunday for free and universal early childhood education and care. It also wants to extend universal access to early childhood education for all three- and four-year-olds to 24 hours a week.
Karen Barlow
Contact her on karen.barlow@canberratimes.com.au
