Families paying more for childcare despite billions in subsidies

Families across Wannon are already under pressure from the rising cost of everyday essentials, and the latest inflation figures show childcare is adding to that burden.

New ABS figures reveal out-of-pocket childcare costs increased by 3.5 per cent over the past year, including a further 0.6 per cent rise in the latest month. At the same time, headline inflation has climbed to 4 per cent.

Dan Tehan MP, Member for Wannon said, “For families juggling work, household bills and the cost of raising children, another increase in childcare costs is unwelcome news, particularly after Labor promised its childcare changes would make childcare more affordable.”

Since Labor came to office, childcare fees have risen by around 29 per cent, while Commonwealth spending on the Child Care Subsidy is projected to exceed $20 billion a year by 2029-30.

Despite taxpayers spending billions more, parents are still paying more out of their own pockets, while many families continue to lack the choice and flexibility they need to find care that works around their lives.

“Parents are paying more, taxpayers are paying more, but families are still not getting the choice and flexibility they need to manage their busy schedules or get ahead,” said Mr Tehan.

“More government spending is clearly not the answer to all of Australia’s childcare challenges. Families need a system that gives them genuine choice and flexibility, rather than a rigid, one-size-fits-all approach.

“The Coalition believes every family deserves access to quality care that works for them, and we will continue working towards a childcare system that properly supports families,” he said.

ENDS

Media contact: Sandie Gustus M | 0408 564 232 E | sandie.gustus@aph.gov.au