Families spend more on childcare than on groceries or bills   
Sydney Morning Herald
June 30, 2021


Nearly one in three families spend more on childcare than on groceries and more than 80 per cent spend more than they do on their utility bills, making it unaffordable for thousands of people across Australia.

Analysis by education and health policy experts, the Mitchell Institute, has found childcare is too expensive for 386,000 (39 per cent) of families. The report uses an international benchmark of no more than 7 per cent of disposable income spent on childcare to determine affordability.



The analysis of data from the national Household, Income and Labour Dynamics in Australia survey found 31 per cent of families spend more on childcare than groceries and 83 per cent of families spend more on childcare than on their utility bills. Nearly 70 per cent spend more on childcare than they do on transport. 

Report co-author Peter Hurley said childcare was more expensive for families than sending their children to a private primary school.

“Many families are not using early childhood education and care services, meaning children don’t receive the developmental benefits of early learning,” Dr Hurley said.

The research, which was funded by the philanthropic organisation the Minderoo Foundation, also found lower and middle income families paid a higher proportion of their household income on childcare compared to higher income families. About 48 per cent of families with an annual gross household income of less than $70,000 pay more than 7 per cent of their household disposable income on childcare costs. For families with income of over $200,000, 34 per cent paid more than 7 per cent on childcare.


Liz Williams from Melbourne’s northern suburb of Reservoir said the cost of childcare for her three-year-old was more than her mortgage repayments. She and her partner, who both work in IT and also have a three-month-old, received a childcare subsidy capped at $10,000 a year. This ran out in March which meant their out-of-pocket cost was nearly $500 including the subsidy and $700 per week since March for five days of childcare for their toddler. Their minimum weekly mortgage payment for a two-bedroom unit is $500.

“We’ve taken her out of childcare full-time because it’s too much of our income,” Ms Williams said. “It makes it unaffordable.“



“Next year we will have two kids in childcare close to full-time at a cost of $500 a week each.”   

Ms Williams said it was not worth getting a promotion at work because it would put her above the childcare subsidy threshold. “I can’t apply for promotions if I want to stay under the cap,” she said.


Rosa Brown from Ashfield in Sydney’s inner-west said she sent her three-year-old son to childcare five days a week last year and this had meant she was left with $10 per hour in earnings. If she sends her three-month-old son to childcare as well next year the costs will be $56 per day above her daily salary as a teacher.   

“I love my job, but the idea of paying to do it feels unfair,” she said. “We are paying more for childcare than we do on rent.”

While her husband earns a higher salary, Ms Brown said she “as the lower income earner feels like I’m being told to stay at home and look after the kids”.

Associate Professor Elizabeth Hill, a political economist from the University of Sydney said despite federal budget increases for childcare subsidies that take effect from next year, childcare remains a major expense.


“The problem of high out-of-pocket costs for families using childcare is not fixed,” she said. “And the high cost of early childhood education and care is an ongoing impediment to workforce participation, and especially women’s workforce participation.

“... And that has a really significant impact on gender equality in leadership positions over the long term and a really significant effect on long term earnings and superannuation.”

Education and Youth Minister Alan Tudge said the average out-of-pocket child care cost for families was $3.93 per hour and a quarter of all families paid less than $2 an hour. He said child care support was “targeted to those who need it most”.

“Additional support we announced in the Budget will further lower costs for around 250,000 families each year,” he said.

Grappler Truth Teller Feller wrote on Jun 30^th, 2021 at 11:09pm:


Heavens no.

You cannot expect people to actually raise their own children, that would be the responsible thing to do.

It would also screw the grubberment who is dependent on dual income taxes to fund their lavish lifestyles.

The grubberment depends on income taxes from dual income families.

Funny how
If you are a dual income family, you pay tax separately.
But if you earn the same pre-tax income as a dual income, you end up paying more tax if your wife (or husband) isnt working.

But when you get a pension they say two can live cheaper than one
So the income for a couple is less than 2 separate (separated) people
No wonder the divorce rate is higher as the pension kicks in......just saying.

The grubberment is full of criminals and cheats.....A POX ON THEM ALL.