Labor Faces Pressure to Define Universal Childcare

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Arabic version: حزب العمال يواجه ضغوطاً لتحديد معالم رعاية الأطفال الشاملة

According to The Guardian, Australian parents facing rising childcare fees are waiting for Labor to set out how it would deliver a universal system that is available, quality and affordable.

Rachel Hill, a Sydney mother of two who works for a not-for-profit, said she increased her work from two days a week to full-time to meet cost-of-living pressures. Her family’s childcare payments rose from about $175 a week for four days of care to $536 a week for five days. She said the cost influenced the family’s decision not to pursue having a third child.

Prime minister Anthony Albanese has said universal childcare should be “as natural as public school”. But the government is still considering its model, with indications that support would be means-tested. It has commissioned Deloitte to examine the cost of providing services across metropolitan, regional and remote areas, while KPMG has examined the case for government ownership and leasing of centres.

The government’s $1bn building early education fund is intended to help states and not-for-profits establish centres in childcare deserts. Its first grant round allocated $17.3m to three not-for-profit providers to build four centres in outer metropolitan and regional areas. About 70% of the sector is privately run.

Families with one child and household income up to $88,520 receive a subsidy covering 90% of fees, with the rate reducing as income rises and ending at $538,520. Fees rose 7.3% in the 12 months to August. The childcare subsidy was projected to cost about $16.2bn in the previous financial year and is forecast to reach $18.4bn by 2028-29.

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