PARENTS will be stung up to $130 a day for childcare from next month as fees rocket to comply with tough new government reforms.

A Herald Sun investigation has found unprecedented fee rises up to $25 a day because of mandatory changes to staff numbers from January 1.  

Operators warned soaring fees would force many struggling parents to pull their kids out of care and turn to grandparents, friends or unregulated backyard care - or quit work.

Can you afford to pay another $25 a day?.    

How will the fee hikes affect your family?

The new regulations will require one staff member to look after four children up to two years old - up from the current ratio of five.

Parents are receiving letters about the price rises and reduction in places. Up to 4000 places may be lost across Victoria.  

A survey of more than 300 centres by the Herald Sun found fee rises would be between $2 and $25 a day, with most between $5 and $10 - half of which will be offset by federal subsidies.

The findings fly in the face of Productivity Commission estimates, released yesterday, of a 15 per cent rise - or $43.50 on average a week.

The Government claims fees will rise by only 57c and up to $8.67 a week by 2014-15.

The crisis comes as:

THE Childcare Centres Association of Victoria estimates parents in the outer metropolitan area will be most
affected by loss of places for under-threes.

MANY parents will be hit with a double whammy after some centres raised their fees in July.  

AT LEAST four centres will close because of childcare and kindergarten reforms.

BAMBINI'S two early learning centres in Brighton will raise fees from $111 a day to more than $120 to cover the cost of hiring extra staff.

The Productivity Commission report proposed an overhaul of subsidies to help cushion the blow to low-income parents.

The commission found 15,000 extra workers will be needed across the nation to implement the reforms, and paid higher wages to reflect their qualifications.

The Government yesterday rejected the Productivity Commission's findings on fees and said it had over-estimated the impact on providers and families.

Childcare Minister Kate Ellis said the Government was "investing at record levels in direct payments to families to help them meet the costs of care".

"I have heard that some childcare providers are using these reforms as an excuse to raise fees," she said.   

The Child Care Centres Association of Victoria said most private centres would shed child places rather than burden families with significant fee increases.

Jennifer Kearney, who runs Sutherland Street Childcare and Kindergarten in Kilmore, is shedding nine places for under-threes, and raising fees by $7 a day.

Families already struggling to pay were searching for alternatives.

"I think the changes are good for children ... but the Government hasn't increased subsidies to cover it," she said.

Community Childcare spokeswoman Barbara Romeril said the new minimum standards were good for children and staff.
Comments on this story

   Sarah of QLD Posted at 9:53 AM December 02, 2011

       Sarah of Gosford...you're a legend. I wholeheartedly agree that if people cannot afford children, don't have them. I do sympathise a bit with people since the cost of living here is extreme, but if you want to have children at least wait until you are earning enough or go and get educated first.

   Parent of Brissy Posted at 9:52 AM December 02, 2011

       Young families get more money now then they ever did $5000 baby bonus for each child and massive rebates back for childcare. They have never had it better.

   Nice Posted at 9:51 AM December 02, 2011

       Looks like a lot more parents will be getting paid by centrelink and staying home. Guess who pays for that everyone of us. Kids benefit from being at daycare they actually learn social skills thats right they play and talk to other kids rather than stay at home on there computer games. I guess that's the government and everybody that is bagging daycares choice to pay parents to stay at home.




Read more: http://www.news.com.au/money/cost-of-living/childcare-crisis-as-fees-set-to-soar/story-fnagkbpv-1226211847123#ixzz1fPRRqdb2

will the CARBON TAX compensation do anything for mums and dads do you think.??..


always strikes me as odd.. the govt give out baby bonus' and is now paying paid maternity leave.... and then those that oblige and have children..are slugged from then on.... how can you afford to work when you are paying out a full time jobs pay for childcare. it doesnt make sense.

I am sure these cost wont both the pollies..who can more than afford it..NOW.

Yes. Capitalism is getting out of hand.

All this worry to have the new house, the new car, the brand name clothes....keeping up with the Jones's is no picnic.

When it finishes (capitalism) mum can stay home with the kids.....ah! for freedom.

cods wrote on Dec 3^rd, 2011 at 7:10am:




It's ok for the mums who have family to baby sit, otherwise I can't see how it would be worth it unless they were on a very good wage.

I look at some of those kids and wonder why the mother doesn't go back to work to have some peace and quiet, then I look at the mum and realise it's the kid that needs to get away from her ha ha

They are pricing mums out of the workforce, all these stupid rules and regulations, next it will be one child care worker per child.

It's a huge industry....baby bonus = child care,  women have more babies, work in child care and send their children to child care.

Child care cost us over $60k a year.  The price you pay for a stay at home mum I guess, and I wouldnt want it any other way.