Parents to pay for childcare wage rise as early childcare teachers win 10 per cent pay boost

Childcare fees are set to rise again as latest data shows staff vacancies surged 70 per cent since the start of the pandemic.

Exclusive: Parents will pay for a 10 per cent wage rise for childcare teachers this year, as short-staffed centres struggle to recruit 4500 daycare workers.

Australia’s biggest childcare provider, Goodstart Early Learning, will grant early childhood teachers a 10 per cent pay rise from July 1.

The pay rise will boost wages to about $76,000 a year, in line with the starting salary of most primary school teachers.

Goodstart will pay for the wage rises by raising its fees by 3.5 per cent on average across its 760 centres.

Child care workers without a teaching degree will get a 3 per cent pay rise, with wages set between 3 to 5 per cent above award rates of pay.

“Great teachers and educators are absolutely crucial to providing quality early learning and the benefits that delivers for child development,’’ Goodstart chief executive Julia Davison said.

“We want to be able to pay more teachers and educators more because of the value of the work they do.

“We’d like to be able to do more, but we can only do so much without fees becoming unaffordable for families.”

Kim Dixon is grateful for the lower fees for her son Kaiden, 4 and Talayah, 3. Picture: Supplied/ Goodstart

All Australian childcare centres are expected to boost teacher wages 10 per cent this year, under a draft determination by the Fair Work Commission.

Teachers need the same four-year university degree to work in childcare centres as schools, which also offer up to 12 weeks’ holidays a year instead of the standard month’s leave in daycare.

Federal Education Department data reveals that staff vacancies have surged 70 per cent in childcare centres since the start of the Covid-19 pandemic last year, with more than 4500 unfilled positions.

Australian Childcare Alliance president Paul Mondo said many older staff had left daycare during the pandemic, due to fears of catching Covid-19 from children.

Border closures have also stopped foreign workers from plugging staffing gaps.

Mr Mondo said there was a “perfect storm’’ of more children enrolled in daycare, as centres struggle to find qualified staff.

“A lot of older staff effectively retired as a result of Covid-19,’’ he said.

“There’s been a shortage of degree-trained teachers, who often have a choice between primary school and centre-based daycare.

“Pay parity ultimately comes at a cost to parents through fee increases.’’

Centres are struggling to find qualified staff Picture: Supplied.

The Morrison Government introduced legislation to federal parliament last week to scrap the $10,000 annual limit for childcare subsidies, per child, from July 2022.

The maximum subsidy will also rise from 85 per cent to 95 per cent of fees for second and subsequent children.

The Parenthood said it was disappointing that families must wait another year for fee relief.

“Any increase in fees is a concern for families already struggling with the cost of early education and care,’’ The Parenthood executive Georgie Dent said.

“The cost puts a lot of pressure on family budgets and creates a barrier for a lot of families to take on work, or additional work.’’

Goodstart, a not-for-profit operator, offers $5 per day childcare to 1000 disadvantaged families through its Early Learning Fund.

Single mother Kim Dixon, from Toowoomba, Queensland, is grateful for the lower fees for her son Kaiden, 4 and Talayah, 3.

“It helps to pay the bills and put food on the table,’’ she said.

“I don’t think I could do that without the Early Learning funding.’’

Originally published as Parents to pay for childcare wage rise as early childcare teachers win 10 per cent pay boost