OUT OF POCKET CHILD CARE COSTS HIGHER UNDER THE LIBERALS

Senate Estimates has today revealed that child care costs under this Liberal Government are higher than at any time since Labor was elected and increased the Child Care Rebate to 50 per cent.

 

The Department of Social Services has confirmed that for the latest available period – the March quarter 2014 – the out-of-pocket cost of child care is taking up a greater proportion of family income across all reported income groups. 

“For every income group, out of pocket child care costs are higher under the Liberals than at any time since Labor was elected and increased the Child Care Rebate,” Shadow Minister for Early Childhood, Kate Ellis, said. 

“This re-enforces Labor’s position that the Government’s Child Care Package needs to bring down the cost for families, not just for Government.” 

Labor this week said we will work co-operatively with the Government with the aim of making sure their response to the Productivity Commission’s report on child care delivers quality, accessible and affordable care, at the same time as increasing workforce participation. 

“If we are going to have a frank national debate about child care policy, the most up-to-date data must be on the record, even if it shows that out-of-pocket costs have soared under the Government’s watch,” Kate Ellis said.

“Getting changes to child care right is critical, and we are working with the Government in an open and constructive way.” 

The figures were revealed by the Department of Social Services after sustained questioning by Labor Senator for Western Australia, Sue Lines. 

In 2008 Labor increased the Child Care Rebate from 30 per cent to 50 per cent. 

TABLE: Out-of-pocket costs for one child in long day care after Australian Government subsidies, March quarter 2014.

 

Family Income

Out-of-pocket cost (% of family income)

$35,000

10.4

$55,000

9.9

$75,000

9.7

$95,000

9.5

$115,000

10.5

$135,000

11.1

$150,000

11.1

 

FRIDAY, 27 FEBRUARY 2015