Child care: Government downplays impact of predicted 14 per cent price rise by July 2017
By political reporter Francis Keany
ABC News Dec 2 2016


The Federal Government has promised its overhaul of the child care system will help keep costs down, amid predictions fees will rise by 14 per cent by July 2017.

The Department of Social Services expects the costs of long day care to increase 6.5 per cent this financial year, and 7.3 per cent by July 2017.   

In an answer tendered to a Senate Estimates committee on notice, the DSS said it does not include potential "behavioural changes" when the Federal Government's proposed child care overhaul comes into force.

That would mean fees for a handful of day care centres in Sydney could hit $200 a day, and $150 a day in parts of inner Melbourne.   

But Education Minister Simon Birmingham said most other centres would be much cheaper.

"And if they are being charged in some instances, they are clearly outliers and that's why I would encourage parents to scrutinise very carefully what they're being charged and to quiz those sorts of service providers," he said.

"Overall though, we are going, in our reforms, to apply an hourly fee limit of $11.50."

Mr Birmingham has promised a cap in terms of subsidised cost per hourly care, as well as streamlined subsidies for parents, as part of the changes.

Mr Birmingham said the Government's child care overhaul, which comes into force in 18 months' time, would put "downward pressure on prices".

"I know that there are real cost pressures out there which is why we are applying a new rate of childcare subsidy that we hope to get through the Parliament this year," he said.

But his Labor counterpart Kate Ellis said the changes would be detrimental, and the predicted increases would make child care too expensive for some families.   

"We know that many families will simply not be able to afford the cost of child care," she said.

She said the Government needed to take action to stop the increases as soon as possible.

"There will be absolutely nothing which is done to assist families until mid-2017, and even when the Government's reforms come into effect, modelling shows one in four families will be further worse off," she said.

They have to pay for Tonys rich mums PPL some how.

at $50K/yr for childcare, why would a mum work? she'd need to make $70K just to cover it and what if she had three?

the govt causes the problem by mandating so many rules, so many staff and making it near impossible to run cheaply.

longweekend58 wrote on Jan 3^rd, 2016 at 7:53am:


It's not a babysitting service. It's not like in the early 80's when Council's ran the centres and they did a bit of learning with lots of playtime and painting under the watch of unqualified staff. These days staff need at least a TAFE Cert III, with room leaders needing a Diploma. The days are highly structured with lots of learning and of course, lots of fun too. My kids' childcare centre is great. With regard to the cost, yes it's expensive - very. I used to say (and still do) that childcare is like a second mortgage. If fees rise much more in future, I'll have to start saying that "having a mortgage is like a second childcare".

We need Uber child care. 

cods wrote on Jan 3^rd, 2016 at 9:07am:



I have never had to look after a kid for a day -

just a few minutes would drive me crazy.

Armchair_Politician wrote on Jan 3^rd, 2016 at 9:09am:



When I was a kid a local solo mother used to look after more than 10 kids on the cheap -
now it's just a money making racket.

( I have fond memories of staying there myself as a little kid )

Bobby. wrote on Jan 3^rd, 2016 at 9:11am:


And that was not a MONEY MAKING RACKET