Albanese wants universal childcare to be his legacy. But paying for it isn’t as easy as ABC
Labor is running out of time to make its case to Australian families about how they are going to make childcare accessible and affordable for all Get our new political email , free app or daily news podcast Rachel Hill, a mother of two from Sydney, explains the maths of family planning. The not-for-profit worker recently bumped up her workload from two days a week to full-time to try to cover…
Australian Prime Minister Anthony Albanese aims to be remembered for his universal childcare policy, much like his predecessors' Medicare and the National Disability Insurance Scheme. However, the funding for this ambitious program is proving to be a substantial challenge. Labor has until 2026 to prove its proposals, as the intergenerational report forecasts the country will have more deaths than births by then.
Universal childcare doesn't necessarily mean free childcare, but rather care that is available, quality and affordable.
Wage-earning mothers, such as Rachel Hill, are struggling to cope with soaring childcare costs. Hill, a not-for-profit worker, experienced a significant increase in her childcare fees after going from part-time to full-time work, from $175 to $536 per week. A larger family may have been on the table for her, but the financial strain makes that a reality out of reach.
Albanese's government is conducting two separate analyses of the cost of universal childcare – one by Deloitte and another by KPMG. However, the Deloitte report is facing difficulties, as childcare centers are reluctant to provide their data. Meanwhile, the KPMG report, which involves the government owning and leasing childcare centers, remains confidential under cabinet in confidence rules.
The government is also exploring means-tested subsidies to make childcare more affordable. Currently, the subsidy covers 90% of fees for families earning up to $88,520, with the rate tapering off as income increases. However, childcare fees have been on the rise, surpassing inflation. Despite the rising costs, not-for-profit providers tend to have higher quality and safety ratings.
The government aims to increase the share of not-for-profit childcare providers, currently making up 30% of the sector. With the new building early education fund, the government hopes to boost the not-for-profit sector, particularly in regions lacking adequate childcare options.
Written by urgent.news from The Guardian's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
