In the midst of a cost-of-living crisis where prices are climbing across the board, there’s a bit of relief for families, as childcare costs are dropping for many.
Over a million Australian families have children in some form of care, and they face some of the highest childcare fees in the world. However, the government claims its increased subsidies are easing the financial burden. Data from the Education Department reveals that out-of-pocket expenses have decreased by 13% over the past year.
For a family earning $120,000 annually with one child in care for three days a week, this translates to a savings of $2,140.
“These figures show that our early childhood education and care policy is reducing costs for families. This is good news,” said Minister for Early Childhood Education, Anne Aly.
However, Shadow Early Education Minister Angie Bell challenges this outlook, pointing to different data.
“The Australian Bureau of Statistics doesn’t lie. Their figures show out-of-pocket childcare costs have actually risen by 8.4% over the last 12 months,” Bell told 9News.
The government, meanwhile, is promoting the advantages of increased subsidies, with plans to expand support. Earlier this month, the Productivity Commission recommended free childcare for families earning under $80,000, which would cost $5 billion annually. This move would bring total taxpayer spending on subsidies to $17 billion.
Aly indicated that this proposal, along with other options, is under consideration as Labor seeks a path to universal childcare—a policy that could play a key role in their re-election campaign.
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