Labor’s drive towards universal childcare could cost taxpayers an extra $6.8 billion every year, while providing no direct benefit to around half of Australian families with young children.
That is the finding of a new report from the Centre for Independent Studies, which has highlighted the enormous cost of the Prime Minister’s push to make early education universal.
Anthony Albanese has made universal childcare a key part of his political legacy, with Labor’s National Platform stating that early education “should be universal” and available to all children and families.
But families are not all the same, and neither are the arrangements they choose for raising their children.
A family in regional Australia, a nurse working night shift, a FIFO family, parents who rely on grandparents, or a mum or dad who wants to spend more time caring for their own child should all have their choices respected.
There is no single way to raise a family, so there should not be a one-size-fits-all approach to supporting families.
That is why choice and flexibility must be at the heart of Australia’s childcare system.
Last month, I hosted Senator Matt O’Sullivan, Shadow Minister for Choice in Childcare and Early Learning, in Wannon, to hear firsthand from regional families, and childcare providers, employers and educators about their experiences and the challenges they face.
The feedback the Senator heard will help shape policies that better meet the needs of regional families, including through genuine choice, flexibility and access to quality childcare.
Senator O’Sullivan has also secured a Senate Inquiry into childcare in rural, regional and remote communities. I encourage anyone interested to make a submission and share their experiences by visiting: www.aph.gov.au/Parliamentary_Business/Committees/Senate/Education_and_Employment/RegionalECEC
Government should be helping parents make the choices that are right for their families, rather than deciding that one particular form of care should receive ever-greater support.
Labor is already moving in this direction through policies such as the Three-Day Guarantee and its billion-dollar Building Early Education Fund, which are laying the foundations for a universal early education and care system.
The new report shows just how expensive this agenda could become.
A universal $10-a-day childcare model would increase annual taxpayer expenditure by around $6.81 billion, or 42 per cent, before taking into account any increase in demand.
And the eventual cost could be considerably higher, with further modelling indicating the annual price tag may significantly exceed this estimate.
Despite this enormous additional expenditure, around half of Australian families with children aged 0-5 would receive no direct benefit because they do not currently use formal childcare.
Labor needs to explain why it is pursuing such an expensive universal model without properly recognising the many families who choose other forms of care.
Rather than continually increasing subsidies for one form of care, government should be focused on giving parents greater choice and flexibility to decide what works best for their children and their circumstances.
Families, not government, should be in the driver’s seat when it comes to making those decisions.
ENDS
Media contact: Sandie Gustus M | 0408 564 232 E | sandie.gustus@aph.gov.au