Labor went bold in its budget reply with a plan for cheaper childcare and a long-term vision for a universal system. While it is an important social policy, it is arguably an even more important economic reform.

Labor plans to increase the maximum Child Care Subsidy from 85 per cent to 90 per cent, slow down the rate at which the subsidy tapers off, and remove the annual cap. These changes would make childcare more affordable for almost every family using it.